A review of the State tourism agencies, including Failte Ireland and Tourism Ireland is recommended in a report commissioned by the Irish Tourism Industry Confederation.

The report, prepared by Tourism Consult International and mainly written by former Bord Failte manager Noel Sweeney, says that while it is cognisant of the  all Ireland remit of Tourism Ireland, ‘the particular challenges facing Ireland in a changed market environment together with the restraints on public funding and the need for more effective marketing for the destination, combine to suggest this is an opportune time to review the current organisation arrangements’
 It points out that An Bord Snip Nua and the Tourism Review Group have also recommended a review.

The report says that it will take three to five years for the industry to return to its pre-recession level and recovery ‘is by no means assured’. Success, it says depends on success in restoring growth from four key overseas markets- Britain, the US, France and Germany of which Britain is the most critical because of its volume. It also points out that the number of British holiday visitors to Ireland has not grown in a decade.
The consultants see potential growth in the domestic market but warn that post-recession consumers are more value-conscious.

Exchange rates may grow more favourable in the British and US markets, it says, but the report predicts that heavy discounting will remain a feature of the industry which will continue to suffer from falling profits and a  lack of funds for re-investment.
The report recommends a concentration in marketing terms on the top visitor producing markets, a more intensive marketing of Dublin(which attracts 40% of all visitors) as a distinct destination and a focus on ‘granular marketing’ which would target visitors with ‘highly specific consumer behaviour’

Noel Sweeney said the reaction of British visitors to the value of their Irish holiday had been worrying with almost one in three considering it bad value for money last year. He said this was bound to have a ripple effect. He also said Ireland’s reputation as a high-priced destination would not change until issues such as labour rates, utility charges and local authority fees were addressed.

Read the full report or an executive summary at www.itic.ie