Minister at odds with tourists over Ireland as value for money holiday
Tourism Ireland and Bord Fáilte yesterday unveiled plans to increase the number of tourists by 5% next year, despite the prospect of higher prices across the sector.
Mr O'Donoghue said prices in Ireland were still regarded as competitive, despite new figures which show a substantial drop in the number of overseas visitors who regard an Irish holiday as offering value for money.
Only one in four European tourists and just over half of all Britons now believe Ireland provides a good value holiday choice, according to a Bord Fáilte study.
More worryingly, just 45% of North American tourists regard Ireland as a value for money destination compared to 70% of trans-Atlantic visitors just 12 months ago.
Speaking at the joint launch of the Tourism Ireland and Bord Fáilte 2003 marketing campaigns yesterday, Mr O'Donoghue said the widely predicted doom and gloom scenarios for the industry had not materialised. He claimed the final figures for 2002 should show a moderate recovery with visitor numbers up 2% on last year.
Although he acknowledged recent VAT and insurance increases would raise prices, Mr O'Donoghue stressed the need for people to continue to provide value for money.
"Ireland has never been seen as a low-cost, mass destination like Mediterranean countries. We must compete with other destinations in northern Europe," observed the minister. Mr O'Donoghue also pointed out a reduction in corporation tax and an increase in the Tourism Ireland budget should help increase competitiveness.
Nevertheless, over half of all foreign tourists said the general cost of living and alcohol and beverages in particular cost more than expected. Concern was also expressed by almost one in two visitors about the cost of taxis, groceries and restaurants.
Bord Fáilte spokesperson Malcolm Connolly acknowledged that the figures represented "a worrisome trend" as the organisation also reported a downturn this year in tourist numbers for guesthouses, coach tours, car-hire rental and visitor attractions.
The number of visitors in the Dublin, Shannon, west and north-west regions have also fallen in the past 12 months, although some growth was reported in the south-west and midlands-east areas.
In addition, almost half of all tourism service providers have expressed concern about the cost and availability of staff with a further 35% warning about the effect of high insurance costs on the industry.
Tourism Ireland chief executive Paul O'Toole predicted the overall number of visitors to both parts of Ireland next year would increase to €7.5 million from a projected €7.1 million in 2002.
Visitor revenue growth is targeted to rise by 10% to around 4 billion. Mr O'Toole predicted that the North American market would grow by 10% next year to recover losses suffered by the effects of September 11 and global recession, providing there was no escalation of the current conflict in the Middle East.
Mr O'Toole expects the number of British tourists to increase by 5% in 2003 and the European market to grow by 4%.
Mr O'Toole acknowledged that Ireland was suffering from some negative word of mouth publicity about general prices but stressed that its role was to position Ireland as "a premier destination where you come and get that little bit extra".
"A big issue is ensuring the quality of the product and the uniqueness of Ireland as a holiday destination remain strong," he added.
The majority of Tourism Ireland's €25 million marketing budget for 2003 will continue to focus on Britain, the US and Germany which together account for 80% of all visitors to Ireland, said Mr O'Toole.
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