Tourism can 'double value to economy' to €6bn by 2012

THE tourism sector can double its value to the economy to €6 billion by 2012 and increase visitor numbers from six million to 10 million, according to a major new report.

The Tourism Policy Review Group yesterday outlined the results of its study of the tourism industry by setting targets which Tourism Minister, John O'Donoghue described as "extremely ambitious but achievable".

However, the TPRG warned in its report New Horizons for Irish Tourism that the industry was at a crossroads due to deteriorating competitiveness.

It blamed the increasing perception among tourists that Ireland was no longer a value-for-money destination. The report says a recovery of competitiveness will be key if the industry is to meet its targets.

It recommends that traditional markets of Britain and the US should remain the main focus of promotional campaigns; the number of domestic holidays can increase from three million to 4.3 million over the next decade with corresponding revenue growth from €0.6bn to €1bn and the number of foreign visitors to the Border, Midland and Western regions (BMW) can be doubled.

Among 75 key recommendations contained in the TPRG report are:

* Government action should focus on tackling inflation, reducing insurance costs and lowering indirect taxation levels, especially VAT and excise duties.

* Improve infrastructure including the national road network, better signposting, improved bus and rail services, a Dublin Airport metro link as well as completion of a National Conference Centre and National Sports Stadium.

* Better air and sea access including a renegotiation of the Ireland-US Bilateral Air Agreement, additional air routes plus improved facilities at Dublin Airport and ferry terminals.

* Benchmarking to compare Irish tourism prices and products with other countries.

* Role for tourism agencies in planning issues plus measures to tackle litter and access to the countryside.

* A mandatory classification system for hotels and guesthouses.

Mr Travers said urgent and fundamental changes in the policies and actions of both the Government and the industry were required if success was to be replicated.

The report warns that any failure to combat a recent lack of competitiveness would undermine the capacity for future growth of the sector.

While believing the Government's planned smoking ban would not have a dramatic effect on visitor numbers, the report said discussions should continue between the Department of Health and the tourism sector to minimise any adverse impact of the legislation.

Mr O'Donoghue described the TPRG report as the most important and authoritative document on tourism policy and performance in over a decade.

"I am determined that the excellent work of the review group will be capitalised on and the momentum generated by the focus on the tourism industry will gather force," he said.

Last night, the TPRG report was given a positive reaction by a variety of tourist interests, including Fáilte Ireland, the Irish Hotels' Federation and the Irish Tourist Industry Confederation.

Welcoming the report, the ITIC said it had the potential to restore growth and sustainability to the industry for many more years if implemented fully.

"Getting Ireland's competitiveness back into balance will be the industry's primary requirement from Government," said an ITIC spokesperson.