Visitor numbers to Ireland to fall by 3 per cent

The number of visitors to Ireland is expected to decline for the first time in seven years this year, Tourism Ireland said today…

The number of visitors to Ireland is expected to decline for the first time in seven years this year, Tourism Ireland said today.

The organisation announced details of a €47 million three-year marketing strategy in Dublin this afternoon.

Its new Go Where Ireland Takes Youadvertising campaign, which will begin early next year overseas, includes TV, press and online advertising.

Tourism Ireland said the downturn in the global economy has had a knock-on effect in terms of visitors numbers and revenue, particularly during the second half of the year. It said fluctuating oil costs, credit crunch and weakening consumer confidence have combined to put severe pressure on visitor numbers

It is projecting a 3 per cent decline in visitor numbers to 8.8 million for the year compared to 2007 and a 4 per cent drop in revenue to €4.2 billion.

The organisation, which is charged with promoting the island of Ireland overseas, said while the topline numbers are not as bad as they may have been given the depth of the problems with global economies, the actual impact on many tourism enterprises is likely to be deeper.

"2008 has presented us with some of the most challenging trading conditions in years," said chief executive of Tourism Ireland Paul O'Toole. "We expect the outturn for 2008 to be lower than 2007 but slightly ahead of the 2006 performance due to the weak and unstable economic conditions in most of our source markets."

He added that 2009 looks like being a difficult year for tourism.

"While the outlook may appear tough, it is important to recognise that many people around the world will still want to take holidays. We will be working to ensure that the island of Ireland gets its fair share of that business. Irish tourism has always punched above its weight when faced with major challenges in the past," added Mr O'Toole.

Tourism Ireland said that 'kick-start' campaigns are already under way in Britain and other major markets to boost off-season travel in the early months of 2009.

It added that as well as focusing on traditional markets in North America, Britain and Europe, it would also be promoting the island of Ireland further afield in countries such as China and India.

Fine Gael this afternoon said the decision to proceed with the introduction of an airport travel tax as announced in the recent Budget undermined Tourism Ireland's new strategy.

Speaking on the Finance Bill in Dáil Éireann today, Fine Gael tourism spokeswoman Olivia Mitchell said the departure tax was foolhardy, particularly as other countries such as Belgium, had opted to scrap plans to introduce similar taxes.

"The current Government is not taking the tourism industry seriously and has opted for taxing an industry which is  already contracting with a departure tax and a holiday home tax," said Ms Mitchell.

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"The Government seems to view these extra taxes on tourism as a ‘victimless crime’ when the reality is they are damaging the industry at a time when it needs to survive and grow," she added.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist