C. Noel SweeneyTTC – Tourism & Transport Consult

TOURISM IN CRISISUnprecedented downturn in demand

Business closures & 000s jobs lost

2m fewer overseas visitors 2010 vs. ‘07

€1.7 billion fall in foreign earnings

Collapse of British market

Ireland losing market share

Domestic market beginning to contract

...................ACTION NEEDED NOW

Recession dampened demand for travel

Downturn in Ireland steeper and longer than other destinations

Competitiveness / value for money an issue

Upturn in 2010 in other countries, but not in Ireland

Future Outlook• Global tourism, like the economy, on an upturn,

although more sluggish in Europe• World tourism to grow by up to 5% p.a.• Demand trends

– Consumer more value conscious– Shorter trips / Spending less– Late booking / ebookings– Ageing demographic

• Challenging for Ireland’s tourism– Right message and communication – Competitiveness– Investment– Access

Low growth scenario

Mid growth scenario

High growth scenario

Bounce in 2011/12 (min.10% )Av. annual growth (min. 6%)Constant length of stayAv. daily expenditure +2% p.a.

‘Bounce’ in 2011/12 (5% to 10%)Av. annual growth (min 5%)Marginal decrease in length of stayAv. daily expenditure +2% p.a.

Marginal annual growth (<4%p.a.)Shortening length of stayNo change in average daily spend

Low

Mid

High

New jobs created by 2015 under 3 growth scenarios= 1,000 jobs

€4.6b €5.7b€4.9b €6.2b

Overall tourism earnings (Overseas tourism revenue in Ireland, excl. carrier receipts)

Opportunity to grow to €6 billion

Exchequer take €1.7billion

14,000 to 21,000 new jobs created

Overseas visitor bednight scenario projections

2015 scenarios: Increase over 2010:High 59.8 million +35%Mid 53.8 million +22%Low 47.4 million +7%

Overseas visitors (000s) growth scenarios 2010-2015

+18% +36% +45%

Mid to High

Holiday Visitors+42% to +53%

GB : +55% to 64%USA: +36% to 52%Germany: +44% to 50%France: + 34% to 39%All other: + 28% to 44%

10 Point PlanA new marketing approach1. Repair Ireland’s damaged image abroad

2. Re-launch Ireland as a tourist destination

3. Promote quality & value

4. Focus on top 4 producing markets

5. Get the marketing right

6. Sell to our strengths

Making it happen 7. Industry-led Recovery Task Force

8. Re-engineer tourism agencies

9. Launch business loan scheme

10.High level group to tackle hotel issue

Scenario setting Turnaround strategyIndustry-led Recovery

Task Force

‘Stretch’ targets

Overseas holiday visitor focus4 top producing markets

British recovery & winning bigger share ex USA, Germany

& FranceStatic domestic demand

Image recoveryRe-launch brand

Smarter marketingQuality/value focusOrganisation reform

Credit access & cost base reductions

sweeney@ttc.ie