Faltering Failte threatens boom in tourism revenue

Bord Failte is forecasting that tourism will grow by 8 per cent in 1998 but a senior figure in the industry warned that Ireland…

Bord Failte is forecasting that tourism will grow by 8 per cent in 1998 but a senior figure in the industry warned that Ireland of the Welcomes should not become Ireland of the Unwelcome. The Minister for Tourism, Dr McDaid, said the tourist industry should not depend so heavily on the taxpayer for its international promotion.

Mr John Donnelly, chairman of the EU-funded board for marketing, called on the industry to take seriously comments that Irish tourism was not satisfying customer needs through the quality delivery of a quality product. He said tourists had problems with litter and gruffness.

"Competition . . . is so intense and increasing so rapidly that our investment in our industry can be easily destroyed by bad publicity induced by poor or indifferent presentation," Mr Donnelly said.

Dr McDaid, who has announced an extra £5 million in Bord Failte's grant-in-aid for 1998, said he wanted the money spent to maintain the growth in tourism revenue but also to improve the regional spread of the benefits from now having five million visitors annually. Dublin and the east coast have been gaining market share at the expense of the west.

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Dr McDaid said overseas revenue from tourism has grown by 85 per cent in Dublin during the first six years of the present decade. During the same period in the west it was 41 per cent while in the north-west it was 20 per cent. Bord Failte is being asked to prepare marketing programmes in 1998 which highlight the distinctive attraction of all regions of Ireland.

Dr McDaid told a meeting of the industry in Dublin that it would have to do more to help itself. "The Exchequer this year provides £27 million to Bord Failte. By all international comparisons, this is a most generous amount." Dr McDaid claimed that our European competitors draw on large contributions from their respective tourist industries for international marketing.

Bord Failte is engaged in discussions with the Irish industry to bring its contribution to promotional costs more into line with the European model.

Bord Failte's director general, Mr Matt McNulty, said the targets set for 1997 would be met. Numbers would increase by 7 per cent and revenue by 9 per cent. He acknowledged, however, that the growth had been unevenly spread between the various product categories - in accommodation especially - and between the regions.

Home holidays have performed well, according to Mr McNulty. In recent years, this market has been relatively static. The best performing market was Britain. Ireland is now seen as a domestic market of Britain, no different from Wales or Scotland. Despite the cheap air and sea fares, the yield from British tourists is going up. The currency outlook continues to be good with sterling strong against the Irish pound. However, Mr McNulty warned, the developments on EMU will be crucial with Ireland entering on the "first wave" and Britain staying out.

The chairman of Bord Failte, Mr Mark Mortell, said a replacement for Mr Noel Toolan, the international marketing director, would be considered at a board meeting tomorrow.