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
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•
•
•
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