It has been shown again and again that for tourism destinations to maintain success, product investment and innovation are key.  Ireland is a terrific example of success where the massive investment of the last decade has produced a tourism product which is world class in every respect.  

However, for tourism to keep contributing to Ireland’s economic wellbeing, strategies must focus on the needs of future customers, the actions of international competitors, and be in line with market dynamics.  This is even more critical in a downturn, so that when recovery happens, as it will, Ireland is well positioned to win its share of the ever more sophisticated and demanding international traveller.

Kenmare in County Kerry has won a hard earned reputation for developing a superb tourism product which is the envy of many destinations, but are they resting on their laurels?  Not Kenmare, they don’t do resting in that part of Kerry.  They have recently proposed the development of a world class attraction which they call The Centre of Contemporary Irish Culture.  One of its promoters is John Brennan, and he spoke with ITIC about this new and exciting project for Kenmare and the Southwest.

Click on the image below to hear what he had to say.

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July 29th 2009

In these times of much gloom about the short-term prospects for the global and domestic economies, it’s important to remember that there will be life after this recession.  But as detailed in our Shift to Thrift ezine of May 21st, the future will be different to what was accepted as normal before the present recession.

It’s good to know therefore that much work is being done in developing strategic policy requirements which will help to build a more sustainable competitive enterprise sector in order to build export led growth and economic recovery in Ireland.

Forfás is Ireland’s national policy advisory body for enterprise and science, and they have just published a comprehensive document called Sharing our Future: Ireland 2025, which looks at a range of changes and challenges that will affect life and enterprise in Ireland over the coming decades.

It concludes that the forces of change the global trends and the potential scenarios that will determine Ireland’s future are already underway.

Eleven key forces of change impacting on Ireland have been identified as follows; Demographics, Technology, Innovation & Entrepreneurship, Education & Skills, Social Values and Quality of Life, Globalisation, Infrastructure, Governance & Regulation, Energy supply & Security, Climate Change, Natural Resources, Conflict.

The report says that Ireland’s enterprise profile is changing with services, including tourism, likely to play to an even greater role in the economy of the future.  Ireland needs to build on its strengths as one of the world’s leading service exporting countries, and ensure that we prioritise the actions and investments that facilitate these enterprises.  It is essential, the report goes on, that we employ a long-term vision when addressing the immediate challenges of stabilising the public finances and the banking system, restoring cost competitiveness and achieving the essential flexibility to keep Ireland well positioned for the future.

Some tourism specific comments include:

- Ireland’s international connectivity (sea and air) will also need to be reviewed and revised as the global challenges heighten, while world trade continues to grow with emerging economies and the need for international mobility for business increases (pg 20).
- Improving air connectivity and seaport capacity infrastructures is also of high importance (pg 65).
- Air travel will be increasingly seen as a luxury (pg 86).
- Freight transport will move away from air to sea, providing opportunities for deep water ports, ship building and repair (pg 86).
- In an increasingly globalised economy national and international connectivity, coupled with effective internal connectivity, is critically important for access to markets, efficiency in supply chain management, labour mobility and in mitigating the impact of Ireland’s peripheral location (pg 114).
- A first-class infrastructure is vital to Ireland’s future competitivness.  Unless we make further improvements, our competitiveness will erode.  All demographic projections indicate continued further population growth.  We should plan now for first-class transport infrastructure and serviced that can meet future growth (pg 115).
- An integrated transport system should not necessarily be a public service investment only.  Other service and investment models, for example, the mobile phone industry with licence auctions and private investments, or the air industry with the impact of low cost carriers, should be reviewed for possible financing mechanisms (pg 115).
- The economic and social impacts of pricing mechanisms for transportation, including air travel for Ireland should be further considered to ensure users pay the full cost and that requirements for subsidy are clearly identified (pg 116).
- A long-term perspective is needed of Ireland’s key international connection requirements for commerce, tourism and social and cultural requirements, and how these are to be realised in the light of potential international regulatory constraints on fuel for air travel.  The importance of direct long-haul air access in addition to competitive short-haul services will need to be considered in the context of other developments in sea and rail transport internationally (pg 116).

This is a terrific thought provoking report from Forfás which can be accessed by clicking here.  But be warned, at 148 pages it does not fall into the category of “light bedtime reading”.  There is however a good Executive Summary on pages 3 to 12, and a short summary of conclusions on pages 128 and 129.

As an angry blogger on ITIC’s site said very recently (July 8th):
Unfortunately for Ireland it is the short-term political type of ‘leadership’ with no vision beyond 5 year terms that has dominated for far too long.  The greater long-term national good always seems to be sacrificed in favour of short-term fixes. This type of reactive governance achieves nothing apart from jumping from one fire fight to another while the real underlying problems are never properly addressed or solved.

Indeed.  And the Forfás report also concludes that courage and the capacity to take the longer term perspective are critical to achieving renewed economic stability as the pace of change accelerates.

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July 15th 2009

When you need to gauge how the tourism business in Ireland is doing you must go to Kerry. It’s not just one of the most beautiful places in Ireland, many believe it’s one of the most beautiful places in the world. They’ve been welcoming visitors for centuries, and they do it better than most, which in no small way accounts for the tremendous success which the tourism industry in the area has enjoyed, literally for centuries.

ITIC spoke with a number of operators in the last few days and enquired how the year was going. Click on the images below to hear what they said.

Michael Rosney – Killeen House Hotel

Kate Cooke – QC’s Seafood Restaurant, Cahersiveen

Jerry O’Grady – Killarney Chamber of Tourism & Commerce

Maurice O’Meara – Killarney Golf & Fishing Club

Got a comment on anything you’ve heard here? VISIT OUR BLOG!

July 8th 2009

Last week’s report by Ireland’s National Competitiveness Council (NCC) is challenging, but also positive in that it clearly identifies the issues which must be addressed with urgency if Ireland is to emerge from this serious recession with a vibrant enterprise base capable of sustaining high living standards.

Without immediate and continuing action to restore our international competitiveness, we run the risk that Ireland will enter a prolonged period of depressed economic activity.  Targeting export led growth (of which tourism is a vital part) is the only sustainable route to maintain living standards and secure long-term prosperity, the NCC report points out.

Of immediate urgency is restoring the health of the public finances.  Additional revenues are urgently required and this will involve broadening the tax base.  Expect to see the introduction of a property tax and more user charges.  However painful, major reduction of current expenditure must be central to restoring public finances.  That must be accompanied by meaningful and lasting public sector reform.  We must rise to the challenge of delivering better public services with fewer resources.

The NCC report also strongly suggests that projects in the National Development Plan are reprioritised, with those having the most favourable impact on competitiveness being progressed quickly.

Ensuring that the banks channel credit to viable businesses will be a critical factor in the recovery process.  And the NCC report urges NAMA not to be slow in releasing the assets of failed developers into the market as, it says, that providing opportunities for strong and new businesses to purchase assets cheaply will help economic recovery.

On cost competitiveness and sustaining jobs, the report is very direct:

-  Adjusting incomes: The rate at which price levels generally and incomes adjust to the changed economic environment will have a considerable bearing on how quickly Ireland can recover;
-  Lowering energy costs: Recent energy price reductions are necessary but not sufficient.  Further actions are required to bring down energy costs;
-  Tackling administered costs: Despite general deflation, inflation in public services and administered prices (e.g. taxi/bus/rail fares; health insurance) is projected to average 13.2% this year.  Government needs to issue policy direction to regulators and agencies to ensure that national economic and competitiveness objectives are prioritised in all regulatory decisions; and
-  Supporting Competition: A number of outstanding Competition Authority recommendations require action.  Government needs to give priority to taking pro-competitiveness decisions on these recommendations.  It is critical that competition law is applied in all sectors of the economy.

The report stresses that as a small open economy highly dependent on trade and investment, rebuilding our international reputation will be an important element of economic recovery.  Continued emphasis on marketing Ireland overseas as an attractive location for investment, business and tourism will be vital.

Click here to access the full NCC report (PDF file) which is essential reading to understanding the road head that will deliver economic recovery.

July 1st 2009