The tourism industry in Ireland is enjoying unprecedented success. It will soon be our biggest single industry. It will be an increasing source of jobs and a very important contributor to the economy and our national prosperity as we enter the new century.
That is why I will be looking for a commitment of £350 million for tourism marketing, product development and training over the seven years of the new National Development Plan.
This is in addition to the Bord Failte budget of £30 million a year. I therefore envisage a total investment of £560 million over the period of the development plan to ensure the growth and expansion of the industry. Within this allocation I intend to substantially increase spending on marketing over the next seven years.
The industry must continue to move forward in a strong partnership of Government, State agencies and the private sector. This close working relationship has produced one of the most dynamic tourism industries in Europe. Our annual growth is twice and three times that of most of our European competitors.
That growth is continuing. Foreign visitor numbers for the first six months of this year are about 8 per cent up on the same period of 1998. In 1999, we should have about 5.9 million foreign visitors with associated earnings of about £2.5 billion.
Forecasts are equally positive. By the end of next year, the number of foreign visitors should be well over six million. By 2006 this could rise to eight million, bringing an estimated £4 billion to our economy. I believe we can handle this massive increase in numbers. But we must work to achieve a good geographical and seasonal spread of business.
We cannot take our success for granted. We cannot and must not take our foot off the marketing accelerator. We must step up our drive for continued excellence in every aspect of the industry by providing ever improving tourism products, efficient and friendly service and, above all, very good value for money.
Competition will become ever keener in a shrinking world. Other countries are becoming more aware of the economic benefits of tourism. China is experiencing massive investment in hotel development. Nearer home the Scots with their new parliament are flexing their muscles. That is why for us competitive pricing is essential for continued future growth, as is competitive access transport.
Tourism accommodation has increased substantially, across all sectors, from hotels and guesthouses to self-catering and hostels. In the hotel sector alone, between 1994 and 1998, 100 new hotels were opened, bringing a 26 per cent increase in new rooms. Many more new hotels are opening this year.
Ensuring that occupancy levels and returns match the rapidly expanding level of accommodation is a key preoccupation within the industry. Given the recent surge in hotel-building, I would advise those contemplating further investment in accommodation to fully satisfy themselves that they have the capability to provide for the necessary marketing and investment to attract new business.
But this continued growth must not be achieved at the expense of the tourism product and the environment. Our success must be well managed. We must not destroy what brings tourists to Ireland in the first place. Some areas of the country, such as the Cliffs of Moher and the Ring of Kerry, are under pressure at certain times of the year. Congestion in these areas must be adequately tackled.
To help the sector address this problem in a structured way I have initiated a pilot scheme on tourism and the environment. A total of £2.3 million in EU funding is being used for 20 environmental management projects, chosen from more than 120 applications. This should facilitate the development of appropriate strategies to meet the challenges posed by growth and expansion.
I have also asked Bord Failte to develop a new marketing initiative to help smaller accommodation owners to market themselves better. The Irish Homes sector, with over 4,000 listed premises, will be targeted first.
Seasonality is another acute problem. I want to see our tourism business spread more through the shoulder and off-peak times of the year. It is equally vital that tourism benefits the whole country. Certain regions, Dublin, the south-east, the west and the south-west, are extremely popular. We need to ensure that other parts, such as the midlands/east and the north-west, also benefit from the strong overall tourism performance. I gave Bord Failte substantial extra funding last year and the year before to support a special drive to promote tourism in the regions.
Sport and tourism can overlap to our national advantage. We have been successful in recent years in attracting major international sporting events to Ireland. Events such as the Tall Ships, the Tour de France and the Smurfit European Open attract enormous international publicity and enhance our status as a world-class destination. The Ryder Cup in 2005 and the Special Olympics in 2003 will focus invaluable international media attention on Ireland.
With that in mind I am asking Bord Failte to consider setting up a dedicated unit with the specific task of exploring opportunities to promote Ireland as a venue for international sporting events and develop strategies for attracting them here. I believe this initiative can offer exciting opportunities for the future.
The quality of service in the industry must be maintained and enhanced. There have been signs of slippage and we have no room for complacency. Recruitment and training are very pertinent issues. Over the next five years, the industry will need a further 105,000 people, 40,000 of whom will work in new positions.
The problem of recruiting sufficient staff has received a lot of publicity. I welcome the fact that employers and CERT are making a determined drive in this area. I believe the nature and flexibility of work in the hospitality industry should encourage greater numbers of local people to take up jobs in the sector.
Staff turnover in tourism is too high, and the industry must make every effort to project the new improved conditions and improve its image as an employer, so that young people and school-leavers can see genuine opportunities for long-term career development.
The Government's National Development Plan offers an exciting opportunity to address infrastructural weaknesses and underpin our economic prosperity. I am confident it will provide a solid foundation to address tourism concerns in the environment and infrastructural areas while supporting the necessary international marketing and training needs of the industry. I have described tourism as the Celtic Tiger's most vigorous cub. I am confident that it will play that role well into the new century.
Dr Jim McDaid is Minister for Tourism, Sport and Recreation