Tourism in Ireland:Observations on the Impact of

European Union Fundingand Marketing Strategies

Karen Volkman & Ray Guydosh

Plattsburgh State University of New York

ASAC 2001, London, Ontario

Introduction

Transformation of Ireland

to

Celtic TigerBook of Kells

Observations

Republic of Ireland Tourism Research Objectives

• Objectives and Funding from ERDF• Labour Market Sector Employment/Growth• Tourism Sectors: Focus on Heritage

• Expansion of Overseas Markets with Emphasis on Canada

History of Tourism Research in the Republic of Ireland

• Tourism Not Recognized until 1980’s in EU• Pearce (1992) Study• Role of the Union in the Field of Tourism (1995)• CCSB Mapping Study - Queens U. Belfast (2000)

European Regional Development Fund

• Created in 1975• Funding Programs

1975-88, 1989-93, 1994-99, 2000-06

• Objective One CountriesGreece, Portugal, Spain, Ireland

Objective One Regions

• “Promoting the development and structural adjustment of regions whose development is lagging behind.”}

• Eligibility: GDP for Three Years Prior to 1993 was < 75% of EU Average

Pearce (1992) ERDF 1975-88

• All EU Tourism received 1.9% Funding• Ireland received 2.4% of this amount• Ireland Didn’t Receive Any Funding for Tourism Until 1984• Little Funding for Tourism in any Objective One Countries During This Programme

ERDF 1994-99 Funding TourismFinancial Information by sub-programme:

Sub-programmes/ Measures

Total cost (in Euro millions)

EC contribution (in Euro millions)

Natural and cultural heritage 155.000 116.000 Development of new products

355.000 171.000

Marketing 154.000 63.000 Training 136.000 102.000 Technical assistance 6.000 4.000

Total 806.000 456.000

Green Paper (1995)• Support improvement in the quality of tourism by taking greater account of trends in tourism demand• Encouraging diversification of tourist activities and products by improving competitiveness• Incorporating the concept of sustainable and balanced growth into tourism by taking greater account of the cultural environmental dimensions

Irish GDP Background

• Republic GDP increased from 60.8 (PPS) in 1986 to 96.5(PPS) in 1996• Republic GDP increase much greater than other Objective One Countries• EU GDP Remained Constant• Republic GDP increased by 6.2%

Link Unemployment Rates to Tourism Industry

• Unemployment Rate in 1985 is 18%

• Unemployment Rate 1997 is 10.1%

• Irish Tourism is Labour Intensive

• 78% Lodging Facilities Have < 40 Rooms

Establishments Listed by Number of Rooms

0-1024%

101-1503%

151-3002%

71-1006%

51-706%

41-505%

31-405%

21-3012%

11-2037%

+3000%

Women in Labour Force

• 105,000 New Employees Needed• 58% Employment Women 25-54• Homemakers Tax Free Allowance of IR£2000 for First Three Years

Irish Tourism Niche

• Tourism is 14% EU GDP and 14.6% of EU Workforce• Competition European “Sun Holiday”• Must Make Distinctive Sell to European and North American Markets

Irish Ancestry

• Global “Irish Diaspora” = 70 million• Acquisition Irish Citizenship• Growth North American Tourism

• 1988 419,000 Visitors• 1998 858,000 Visitors

Irish Image Abroad

• Craic and a Pint of Guinness

• One of Lowest Population Densities in EU

• Tourism Brand Ireland (TBI)

“A Green and Pleasant Land”

Irish Heritage TourismDefinition Brown and Stevens (1996)

• Indigenous and unique in representation of an area’s history• Enliven, enrich, and animate those naturally occurring themes and storylines

• Relatively stable base visitor activity

• Innate appeal for overseas markets

ERDF Heritage Funding

• 24% for 1975-88 Program to Museums, Historic Centers, and Restoration• 1994-99 Program 25% to Heritage Tourism Model

Current Tourism MarketBord Failte 1998

• UK 3,199,000 Visitors

• Europe 1,255,000 Visitors

• North America 858,000 Visitors

Development of Canadian Tourism Market to Ireland

• Irish Descendents in Canada• 1991 Census: 3,780,000 Canadians

of Irish Heritage• Irish are Fourth Largest Ethnic Group in Canada

Canadian Tourist Visits 1979-99

0

20

40

60

80

100

120

140

160

180

200

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

IE-Vis/Ave

UK-Vis/Ave

EUR-Vis/Ave

Canadian Tourist Average Expenditure 1979-99

0

50

100

150

200

250

300

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

IE-Spnd/Ave

UK-Spnd/Ave

EUR-Spnd/Ave

Reflections on Stat Can “International Travel” Data Set

“Phoenix”

Foot and Mouth

• Images in Canada• Newspaper Advertisements from CFIA• Advertisement Campaign: Ireland Open for Travel

Prince Charles steps onto a disinfectant mat as a precaution against foot-and-mouth disease upon his arrival at the Ottawa airport in Ontario Wednesday, April 25, 2001.

(AP Photo/CP, Jonathan Hayward)

Reflections

• By 1990’s Tourism Importance of Tourism to National Economies Recognized by EU

• Ireland Used ERDF Funding to Increase its Tourism Plant:

Genealogy, Green Image, and Heritage

• Combat FMD Image in North America Critical

Tourism in Ireland:Observations on the Impact of

European Union Fundingand Marketing Strategies

ray.guydosh@plattsburgh.edu

karen.volkman@plattsburgh.edu

Plattsburgh State University of New York