What the European Union’s tourism policy means for Ireland

Ray Keaney IHI Hospitality Managers’ Conference

May 2012

Introduction

• Background to tourism policy in the EU

• New framework for tourism

• Lessons for Ireland

Background to tourism policy in the EU

• Policymakers slow to put political structures in place to support tourism development in EU

• Little direct intervention in tourism

• Influence stemmed from policies in other areas e.g. transport, environment and consumer protection

The Lisbon Treaty

• Article 195 provides a legal basis for the development of a coherent policy approach to tourism

• The EU has specific powers to direct tourism activity to complement actions of member states

• Article 195 excludes any harmonisation at European level relating to tourism

Key drivers of change

• Economics:– 1.8 million tourism businesses in Europe– 12% of all jobs– 10% of EU’s GDP

• Projected growth of international tourist arrivals to Europe:– An extra 240 million by 2020– An extra 355 million by 2030

The Commission’s framework

• Objectives

– Stimulate competitiveness in the European tourism sector

– Consolidate the image and profile of Europe

– Promote the development of sustainable, responsible and

high quality tourism

– Maximise the potential of EU financial policies and

instruments for developing tourism

MFF 2014-2020

• Overall budget €1,025 billion• Tourism related finances can be found in the

following proposals:– Common Strategic Framework €336 billion – Horizon 2020 €80 billion – Erasmus for All €19 billion – COSME €2.5 billion – Creative Europe €1.8 billion

How should Ireland respond?

• Global Irish Economic Forum 2011 recommended:– The development of a strategic plan for the tourism sector– A vision for Ireland to become ‘the best small country in

the world to do tourism’

• The government’s policy advisory board, Forfás, recommended in 2011 that:– export opportunities in tourism should be addressed

vigorously– allocation of government resources should better reflect

current and future opportunities

The challenges

• Tourism sector is fragmented• Knowledge base is weak• Tourism is less visible than other sectors of the Irish

economy • Successive governments have prioritised the science

and technology and agri-food sectors • Lack of joined-up thinking at the national, regional

and local level• Focus on ‘short-term wins’ at the expense of strategic

development

Lessons for Ireland

• Develop tourism policy initiatives to stimulate long-term job creation and economic growth

• Invest in tourism innovation, research and development

• Give the tourism sector a focus equal to that of the agriculture and food, science and ICT sectors

• Change the structures to facilitate the strategic development of Irish tourism

Actions needed

1. Industry groups should identify issues of strategic importance and adopt a common agenda

2. Government should lead the development of a strategic plan for Irish tourism

3. Ireland should use its presidency of the European Council in 2013 to prioritise tourism in the MFF 2014-2020

Conclusion

• The EU tourism framework offers Ireland a unique opportunity

• The choice is between a compelling future or gradual decline

• The challenge for industry and Government is to put in place the necessary structures to realise the sector’s potential

Thank You