8th Annual Tourism Policy Workshop ‘Confronting Challenges and Seizing Opportunities

in Irish Tourism:

The Role of the Public and Private Sector’

18th November 2017

Tim Fenn CEO

Topics

• Brexit is already HERE

• Tourism Challenges and Opportunities:

Capacity

Competitiveness

Investment in innovation

Careers in Tourism, Education and Training

Some Policy Considerations and Issues

Brexit & The Future

Development of Tourism in Ireland

Brexit is HERE

Currency and Value for money Uncertainty - investment 10 million Out of State Visitors 49% Sterling Area 29% of revenue Sterling Area 7% Drop in Visitors in 2017 ---- ? €103 million Regional Bias

Could Buy

Nov 2015 €

Nov 2017 €

Change

Stg£1 € 1.43 € 1.12 31c/Stg£ (22%)

0

10000

20000

30000

40000

50000

60000

70000

40352 41900 42869

45625 47000

52600

58498 60609 60199 59377

57859 57362 56806 56312 56937 57596

820 Hotels 13 > last year 57,596 bedrooms 659 > last year down

3,013 or 5% from the peak in 2008. 199 Guesthouses 5 < last

year 2,532 bedrooms 66 < last year down 38% from 4,071 in 2008.

Hotel Bedroom Capacity 2001-2016

Capacity

Hotels 2015-6 1 & 2 Star 5 3 Star 9 4 Star 8 5 Star 1 Guesthouses 2015-6 1 & 2 Star 2 3 Star 2 4 Star 1

Capacity

National Hotel Room Occupancy 2006 – 2016

0%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

64% 64%

58% 56% 56% 56% 60% 61%

64%

70% 72%

46% 46% 43% 42%

41% 41% 44% 45% 47%

53% 55%

Room Occupancy Bed OccupancySource: Fáilte Ireland

Hotel Room Occupancy 2011 – 2016 by Programme Area

Source: Fáilte Ireland

Capacity

64%

40%

54%

69%

45%

57%

70%

46%

58%

73%

54%

60%

76%

54%

61%

80%

67% 69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Dublin Ireland's Ancient East Wild Atlantic Way

2011

2012

2013

2014

2015

2016

Competitiveness

Perceived Value for Money

Fáilte Ireland Visitor Attitudes Survey Survey of overseas

visitors

95% good or fair

VFM

5% Poor down

from 40% in 2009

Sterling effect o/s

35 35 28

36 40 33

26 17 13

8 5 5

36 36

36

34 31

34

36 42

37

32 35 36

28 29 36

31 29 33 39 41

49 60 60 59

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Good

Fair

Poor

Source: Fáilte Ireland

Despite being the Joint

highest occupied

Capital City in Europe,

Dublin was the 15th

highest in terms of

average daily rate

2015 Average daily rate

in Dublin €112 and the

average occupancy rate

82.2%.

(15,000 rooms sample

size)

European Cities December 2015 YTD ADR levels (EUR)

0.0 50.0 100.0 150.0 200.0 250.0 300.0

Prague

Moscow

Lisbon

Berlin

Madrid

Helsinki

Vienna

Manchester

Brussels

Dublin

Athens

Istanbul

Edinburgh

Frankfurt

Barcelona

Copenhagen

Amsterdam

Rome

Milan

London

Tel Aviv

Zurich

Paris

Geneva

ADR € 2015

Occ (%) 2015

Most Occupied 2015

London 82.2%

Dublin 82.2%

ADR 2015

Dublin 15th Place

Competitiveness

0.0 50.0 100.0 150.0 200.0 250.0 300.0

Prague

Baku

Istanbul

Manchester

Berlin

Madrid

Vienna

Lisbon

Helsinki

Brussels

Edinburgh

Athens

Frankfurt

Dublin

Amsterdam

Milan

Barcelona

Copenhagen

Rome

London

Tel Aviv

Zurich

Paris

Geneva

ADR € 2016

Occ (%) 2016

Most Occupied 2016

Dublin 82.5%

Edinburgh 82.3%

London 81.3%

Manchester 79.8%

ADR 2016

Dublin 11th Place

Despite being the

highest occupied

Capital City in Europe,

Dublin was the 11th

highest in terms of

average daily rate

2016 Average daily rate

in Dublin €129 (

15.5% and the average

occupancy rate 82.5%.

(15,000 rooms sample

size)

European Cities December 2016 YTD ADR levels (EUR)

Competitiveness

Dublin Last Available Room Rates - mostly below average

Spikes linked to capacity and large events

Demand driven

New Investment 3,000 - 5,000 bedrooms in Dublin

€1 billion investment

Competitiveness

r

Competitiveness

14 Countries with VAT of 9%

±1%

(9.5%)

15 Countries with VAT of 9%

or less

• Cash Resources • Product • Refurbishment • Processes • Employment • Management organisation • Marketing Initiatives – Digital Disruption • Efficient use of resources • Investment in expert systems – procurement, payroll • Investment in Plant efficiency – CHP, refrigeration • Re-deployment

Investment in Innovation

Careers in Tourism Education and Training

Recruit, Develop, Empower and Retain

• 233,000 jobs supported by Tourism at all levels

• Hospitality Skills Oversight Group Chair

• IHF Hospitality Education Workshop • National Tourism Careers Programme • Get a Life in Tourism • Parents, Careers Guidance Teachers • Tourism Insight Programme • Career Visits to Schools • Work Experience Programme

Careers in Tourism Education and Training

Tourism and Hospitality Education and Training • Apprenticeship Programme • Commis Chef • Traineeships • Overseas

• Director of Careers in Tourism and Hospitality in NTDA

Careers in Tourism Education and Training

Insurance • Irish insurance market not functioning • All Business impacted • Claims cost • Claims culture • Claims industry • SOMEONE PAYS

Policy Considerations

and Issues

Short Term Private Accommodation Rentals • Level Playing pitch

• Taxation Policy • Planning law • Regulation of the sector, health and safety, fire • All accommodation services registered, classified

and quality assured • Adequate systems for redress for guests.

• European Developments

Policy Considerations

and Issues

Thank You