It’s all to play for

As the industry said goodbye to 2011 a few glitches appeared on the horizon. The contentious JLC issue has re-emerged and is set to cause problems for all concerned. The government recently published legislation to reform the Joint Labour Committee, which was deemed unconstitutional by the High Court during the year. The euro crisis rolls on and shows no sign of abating.

The RAI are not happy with the JLC issue and are considering a constitutional challenge. In a recent statement Adrian Cummins, Chief Executive of the Restaurants Association of Ireland said, "We will be getting our constitutional lawyers to look at the new proposal and if we find that the proposals are unconstitutional, our members will be asked if the Association should proceed with a Constitutional Challenge".

Ireland’s minimum wage is one of the highest in Europe. If we are to continue with the challenge to make Ireland a competitive destination, this issue could set back any gains achieved to date. The reduction in VAT has shown what can happen when the right conditions are put in place. The issue of Sunday pay premiums should be consigned to the era it belongs to and has no role in a modern open economy which we now operate in.

Another note of concern was raised by a recent World Tourism Association report which claims that the Irish share of the world tourism market has decreased significantly in the past decade, despite us spending more money on tourism than any other European country. The study, commissioned by the Dublin City Business Association, raised concerns that will be the focus of debate for some time. However, when you look at the CSO figures for January to October 2011 - and note that over €3.1 billion in revenue was put into the coffers of the exchequer by overseas tourists - it somewhat dilutes the argument raised.

In contrast, the recent ITIC year review was upbeat and positive. In its review it notes that overseas visitors to Ireland increased by 7% in 2011 – the first increase in four years, while domestic demand volumes held up well, despite a downturn in consumer confidence. Arrivals from mainland Europe are expected to be up by 10%, with arrivals from North America showing an 8% increase and arrivals from Britain up by 5%. "The estimated results for 2011 mark a turning point in what generally has been a year of positive developments for the tourism industry, including recognition by Government of the role tourism can play in the country’s economic recovery," according to ITIC Chairman, John Healy. "It was particularly pleasing that growth in the numbers employed in the sector also returned, with 6,000 jobs added after seasonal adjustments over the last two quarters," he added.

The outlook from the industry, as a whole, is upbeat and confident. The recent budget reinforced the importance of tourism. The industry performed better than most in the line of cutbacks and remained relatively unscathed in contrast to other sectors. Most observers within the industry were satisfied with the outcome and believe it marks a coming of age for tourism and its allied trades. It has shown growth in both monetary and employment terms and can only improve as the year progresses. Most commentators are of the opinion that we have turned a corner. While challenges remain, there is room for optimism. And remember with the Olympics and Euro football, opportunities are there if we can offer alternatives to those who want to ensure they get value for thier hard earned cash. But we can’t be complacent. The focus must be maintained in getting the message out to all our target markets: Ireland represents tremendous value for money, a unique hospitality experience, unrivalled anywhere in the world.

Cyril McAree

Editor