Tourism in Ireland: Observations on the Impact of European Union Funding and Marketing Strategies Karen Volkman & Ray Guydosh Plattsburgh State University of New York ASAC 2001, London, Ontario Introduction Transformation of Ireland to Book of Kells Celtic Tiger 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 Countries Greece, 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 Tourism Financial Information by sub-programme: Total cost EC contribution Sub-programmes/ (in Euro (in Euro Measures millions) millions) Natural and cultural heritage 155.000 116.000 Development of new 355.000 171.000 products 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 71-100 6% 51-70 6% 41-50 5% 101-150 3% 151-300 2% +300 0% 0-10 24% 31-40 5% 21-30 12% 11-20 37% 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 Tourism Definition 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 Market Bord Failte 1998 • UK • Europe • North America 3,199,000 Visitors 1,255,000 Visitors 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 1979-99 200 180 160 140 IE-Vis/Ave UK-Vis/Ave EUR-Vis/Ave 120 100 80 60 40 20 19 99 19 97 19 95 19 93 19 91 19 89 19 87 19 85 19 83 19 81 19 79 0 Canadian Tourist Average Expenditure 1979-99 300 250 200 IE-Spnd/Ave UK-Spnd/Ave EUR-Spnd/Ave 150 100 50 19 99 19 97 19 95 19 93 19 91 19 89 19 87 19 85 19 83 19 81 19 79 0 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 Funding and Marketing Strategies ray.guydosh@plattsburgh.edu karen.volkman@plattsburgh.edu Plattsburgh State University of New York