Speech by the Taoiseach, Mr. Brian Cowen, T.D., at the official opening of the Irish Hotels Federation Annual Conference at the Radisson Blu Hotel, Galway on Monday, 1st March, 2010.
A dhaoine uaisle;
Tá áthas orm a bheith i bhur dteannta i nGaillimh inniu ag Comhdháil Bhliantúil Feidhmeannas na nÓstán in Éirinn. Tá ról suntasach ag an Earnáil Turasóireachta agus Fáilteachais i ngeilleagar na tíre. Tá na gnéithe a chuireann imní oraibh faoin earnáil faoi láthair agus tosaíochtaí bhur mball ar eolas agam agus mé ag taisteal na tíre. Ba mhaith liom a rá libh inniu go leanfaidh an Rialtas ar aghaidh ag obair leis an Earnáil Turasóireachta chun na dúshláin agus na deacraíochtaí sin a sharú.
Good morning ladies and gentlemen.
I am delighted to be here today in Galway to address your annual conference. My sincere thanks to your President, Matt Ryan, Chief Executive John Power, and the members of the Federation for the invitation.
Importance of Tourism and Hospitality Sector
The tourism and hospitality sector is a major economic force in Ireland. It provides up to 200,000 jobs. It helped generate €4 billion in foreign revenue earnings last year, and was responsible for some €1.2 billion in tax revenue.
I believe it is a sector that can, and must, make a major contribution to Ireland's economic renewal.
Outlook
Tourism is a very resilient industry. It has the capacity to bounce back faster than other sectors after a downturn.
We all know that 2010 is going to be another tough year, but I think we are now in a better space than last year. That is why Tourism Ireland set an ambitious target of growing overseas visitors and revenues by 3% this year.
There is, of course, no room whatsoever for complacency. A number of euro zone economies are coming out of recession - and these are important markets for Ireland.
However, despite the better than expected US visitor numbers in 2009, our key markets in the US and Great Britain remain weak - posing a real challenge for the year ahead.
Budget 2010
From travelling around Ireland, I am well aware of the concerns and priorities of the Federation's members. These are also articulated forcefully at national level by John Power and his colleagues.
That is why Budget 2010 included a range of measures to support Irish tourism and hospitality.
The Budget increased overall funding levels for tourism services to over €150 million.
It maintained in real terms of funding for the Tourism Marketing Fund and a trebled funds for tourism product development.
The reductions in excise duty on alcohol products and VAT will also benefit the sector.
I was pleased that the Irish Hotels Federation welcomed the strong acknowledgement by Government of the important role of tourism, as well as the specific measures I've referred to.
New Rail Travel Scheme
Building on proposals from the Federation, the Minister for Finance announced in the Budget that Iarnród Éireann had agreed to participate in a new scheme, to offer discounted travel to senior citizens visiting Ireland from abroad.
I'm glad to say that this has been progressed, in consultation with and it is intended to launch the initiative to coincide with the St Patrick's Festival - when Tourism Ireland will be have major promotions around the world and, in particular, in Britain.
Its hoped to produce an exceptionally attractive, unrestricted offer - which could be used widely across the rail network, would be simple to understand - and will be free to the consumer.
New Fáilte Ireland Campaign
Fáilte Ireland has also launched a new advertising and promotion campaign to promote holidaying at home this year. This has a budget of €4 million and is based on extensive consumer research and consultation with the tourism industry.
It will be broadcast from this week. As you all know, the home holiday market is very significant for hotels, and there is great potential for the sector to benefit from this new campaign.
Business Tourism and the New Convention Centre
Fáilte Ireland is also boosting promotion of business tourism, which delivered over 1.1 million visitors in 2008, spending close to €600 million.
The new national conference centre will open in September. This will send out a big calling card - that Ireland is firmly in the international convention and conference business, and I would urge the hotel sector not to miss out on the opportunities here.
Ireland's Tourism Offering
The quality and value of the Irish tourism product has improved dramatically over the past few years. Accommodation quality, particularly in the case of hotels, is among the highest in Europe.
There are many more things to see and do than in the past, and we have managed to maintain and build on our natural assets and resources.
Visitors constantly express satisfaction rates of well over 90% for their stay here. As people on the front line of the tourism product offering, you can take a lot of the credit for that.
Visas Policy
Tourism was identified as a vital export-oriented service industry in the Government's Framework for Economic Renewal: "Building Ireland's Smart Economy".
It was also a string focus of the Global Economic Forum in Farmleigh last September - where there were some imaginative suggestions.
One issue raised in Farmleigh was the granting of visas for tourist visits, given the competitive disadvantage that our non-participation in Schengen visa arrangements presents in new and fast-developing Markets.
This is a complex and sensitive area, which raises important issues of migration policy and security.
However, I know that the tourism industry is anxious that immigration policy and administration should take account of potential impacts on tourists. Indeed, similar issues arise in the areas of research, education and inward investment.
The Government is aware of the importance of this issue to your sector and has asked the Department of Justice to look for practical solutions to deal with it.
Competitiveness
Before I conclude, I want to acknowledge the very real difficulties that hotels and the tourism industry face.
The Government will continue to work with the industry to help the sector manage its way through these difficulties - whether in stimulating demand, helping to address costs and productivity, or securing access to credit.
I am particularly conscious of your concerns in relation to costs such as labour, local authority rates and charges, and energy.
Reducing these costs is part of the difficult adjustment the whole Irish economy faces. The Government is taking initiatives to help this process - for example by securing a reduction in energy prices last year.
The fact that consumer prices in Ireland have now fallen back to 2006 levels shows that we are responding flexibly to the crisis. This has been recognised by the European Commission and on international markets - helping to restore confidence in the Irish economy.
I acknowledge that you yourselves have made great strides to reduce costs and increase productivity in your own businesses over the past year or two.
I know that these are difficult changes, but if we get our costs right, while also using the crisis to restructure and reinvent ourselves, we will return to a sustainable growth path.
Credit
Credit availability also remains a real difficulty across the economy, including for the hotel sector.
Let me assure you that the Government's strategy for NAMA is centred on the goal of restoring a stable and functioning banking system.
As part of this process we are establishing a credit appeals - which will allow SMEs, including from the tourism industry, to appeal when a credit application has been refused. This will provide a valuable independent recourse for businesses in their dealings with banks.
Concluding Remarks
Finally, in finishing, can I offer my best wishes to your Chief Executive, John Power, who I know is retiring in the coming months.
Can I also wish every success to your incoming President Paul Gallagher and pay tribute to the work of his predecessor, Matt Ryan.
Enjoy the conference and I wish you all every success in the challenging year ahead.
ENDS