The tourism opportunity
What are the key opportunities and challenges ahead for the tourism industry?
John McGrillen
Looking at the performance of the tourism sector for the year ending 2015, the visitor figures coming from outside the island of Ireland have been significant. There is significant growth in that area. We do have a challenge around visitors from the Republic and there are a number of factors that affect that, not least VAT and exchange rates.
The investment in the Waterfront Hall will be a game changer for Belfast. It is a resource that will allow us to bring large scale conferences to the city that we have not been able to do previously. There have been significant bookings coming in already and that presents us with a real opportunity on the business side.
There has also been a significant uplift in terms of the numbers of tour operators who have now started to put Northern Ireland in as part of their itinerary when tourists come to the island of Ireland. We do have a challenge in that our colleagues in the Republic of Ireland have created ‘experience brands’ around the Wild Atlantic Way, Ireland’s Ancient East and Dublin’s rebranding is starting to get traction, certainly in the domestic market and that is starting to impact on us.
One of our biggest challenges is how do we come up with a similar proposition that allows us to have visibility on the international market place that the Wild Atlantic Way and Ireland’s Ancient East are gaining for the Republic of Ireland?
Ciaran O’Neill
The opportunity is to grow on the success of 2012 and 2013 when we really got things right in marketing Northern Ireland. The challenge is we are not increasing the average tourist spend, rurally it isn’t enough to balance the increase in costs in the form of taxation, VAT and the living wage. There is a positive story, we’re seeing growth but not enough of it. There is a real opportunity in events tourism, where we have had some success recently.
Brian Ambrose
The capital investment has been made, with Titanic Belfast, the Causeway and the Waterfront Hall. What we need to do now is make sure we spend money in the regions and in the Republic of Ireland where we need to up our marketing spend. We also need to shift our resources into frontline spending and make sure they fully capitalise on all the fantastic investments we have made.
Niall McKenna
Within tourism in Northern Ireland, more needs to be invested at a grass-roots level. There has been investment in Belfast but little elsewhere. I look at Downpatrick which is home of Saint Patrick’s grave and I often wonder why more is not done to promote this.
Howard Hastings
When we set out in 2010 to look at our strategy for tourism the most ambitious scenario we had was doubling tourism by 2020 to make it a £1 billion economy. Despite a big recession, and higher VAT rates than in the Republic of Ireland, high APD [air passenger duty] charges and a strong currency, we’re going to complete that objective two years early. Now the challenge is growing the tourism industry from £1 billion to £2 billion with the potential creation of 30,000 jobs. That is the opportunity. The challenge is to get taken seriously by those who should support that endeavour.
David Gavaghan
The opportunity is immense. We just need to make sure that by reaching our target two years earlier we don’t lose our focus. When we talk about Northern Ireland we have to focus on what is actually the magnet. That is Belfast. On the island of Ireland the two large magnets for visitors are Dublin and Belfast and the infrastructure between those two cities is fundamental to creating the opportunities. For the rest of the island clearly there are other opportunities as well.
We need to really focus on the Asian and Indian markets. Looking at the two major markets where tourism is going to come from, it is clear they don’t distinguish between the two different jurisdictions on this island and that is a great opportunity for us. We also need to focus on a number of other major populations that are turning into middle class societies. We need to work on the two ends of the spectrum and then we will see the limitless opportunities in front of us.
Andrew Porter
Screen tourism is a key opportunity. There is a lot of scepticism about the long-term opportunities of screen tourism but I would like to see more inward investment throughout screen tourism. Look at New Zealand and what screen tourism has done for that country, there is no reason why we can’t do similar here.
At Castle Ward we had 10,000 visitors in one year thanks to our association with Game of Thrones and the following year, we had 20,000 visitors. There are big opportunities as far as screen tourism is concerned so really it comes down to taking it seriously and an increasing inward investment.
How can we take a holistic approach across government to maximise the potential of tourism?
Brian Ambrose
I’m less concerned about structures. If everyone is clear on what they have to deliver and they should put more effort into the front end instead of back of house. From a distance it looks complex but it is not. Tourism NI has a clear brief and it needs to put its resources into the front line to deliver that, as does Tourism Ireland and the local councils. Let’s not trip over each other and let’s respect each other’s role and go and deliver. There is a clear potential for the tourism sector and let’s articulate what needs to be done on one A4 sheet and then put the resources behind that.
John McGrillen
We would like to see a tourism strategy and, more importantly, an action plan detailing what has to be done and who is going to do it. We can then make the argument for resources. Any strategy needs to reflect things such as screen tourism and the Chinese market. There are 100 tour operators arriving next week from China and a competition to spend time in Belfast with the Game of Thrones cast attracted 2.3 million entrants. Those are real opportunities. In the past if good ideas come forward, like Titanic Belfast, the money has been found.
Niall McKenna
We need a Northern Ireland-based tour company that will bring tourists in via the City and International airports, moving through Ulster, including Donegal, going down south and then coming back up – rather than coming via Dublin and coming up here for one day. We could have a number of offerings around things like golf or Game of Thrones and we need to build a tour operator around that.
Ciaran O’Neill
On hotel bedrooms, we have an occupancy rate of 62 per cent in Northern Ireland and investors like to see occupancies of at least 75 per cent before they will invest. That is why investment has been limited to Belfast. In Derry we see visitors go and stay in Donegal because we haven’t the bed spaces.
Howard Hastings
We have a growing and vibrant private sector but it needs to be aligned with Government. We have doubled the value of tourism and that has improved the take from VAT, PAYE, National Insurance, APD and corporation tax – but there is no upside for the Executive as all the additional tax goes to Treasury. We need a better model whereby the Executive can get a share of the upswing by the private sector.
David Gavaghan
The jobs created are important. That is a huge additional fillip to the economy and that figure of 30,000 jobs needs to get out there. Tourism is a fundamentally attractive way to get people into employment.
At a more basic level, I recently had a poor experience in a local coffee shop the attitude was “you can come back and pick up your coffee when it’s ready.”
Niall McKenna
That comes down purely to training. And that ranges from university degrees to training within James Street South.
David Gavaghan
It is more than just training. It is also about a lack of hunger to do business. As a society, because the public sector has been dominant for so long, we have yet to realise that there are now no jobs being created by government. It is worth noting that Titanic Belfast was broadly 50/50 public/private money and a lot of motivation from the private sector went into that to make it work. Are we sweating our assets enough? The Guinness Storehouse in Dublin has increased its visitors by almost 40 per cent to 1.5 million a year since 2012. We now have some infrastructure assets with global reach but are we getting adequate rates of return?
Niall McKenna
If you can do business in Northern Ireland you can do it anywhere. At the same time that hunger to do business brings opportunities. I have another restaurant in the pipeline but I’m holding off to see exactly where we are going.
Brian Ambrose
What I like about the approach by the Republic is that it is simple to understand – they want to create a
€5 billion industry, employing 250,000 people with 10 million visitors by 2020. Three targets which are easy to remember. The initiatives Wild Atlantic Way, Dublin and Ireland’s Ancient East are beautiful. I can’t articulate that for Northern Ireland.
Ciaran O’Neill
The politicians get tourism and they understand that it creates jobs.
Brian Ambrose
And jobs with a spread across the region. Inward investment will always be more Belfast-centric.
Niall McKenna
The difference between North and South is that they believe in their offering, even if it is only a glass of water – it is the best glass of water you will ever have. We have to start selling and believe in our offering. It is a mind-set. It is selling the experience.
We have a great story with the Giant’s Causeway and Titanic. And also Saint Patrick, which is a great story particularly for American visitors – it is one thing we are not pushing, for whatever reason. There isn’t even a hotel in Downpatrick. We have three great stories and we should be pushing them.
John McGrillen
Over the years we have been investing in capital projects and it hasn’t been matched with revenue spending that would sweat the assets. It is about training and development, about teaching people to tell the story. We need to connect the Mournes with
St Patrick with Strangford Lough with Belfast to the Glens to the Causeway and onto the walled city of Derry. How do we present all that as one proposition? – and keep visitors here for more than one day.
Andrew Porter
We are missing a trick with the sexy stuff such as screen tourism. It has drawn new people into Northern Ireland, people who would not have touched these shores otherwise.
Ciaran O’Neill
Having just come back to Northern Ireland after five years away, service levels have improved immensely over that period but we still have a way to go. Signage, access to WiFi and simplicity of directions are all part of service that make visitors’ journeys much more enjoyable.
Brian Ambrose
With the Wild Atlantic Way they have invested in things like signage and car parks. We need to do the same with Game of Thrones. It comes back to understanding our roles. The local councils need to focus on those types of things, to make sure the street lighting is good and the fundamentals are good. Everyone who visits any council area should have a first-class experience and we need to get down to that level.
How can we make sure we harness developments in new technology to drive tourism forward?
Brian Ambrose
Tourism Ireland has invested hugely in new technology. In tourism terms, Ireland is now number two on both Facebook and Twitter. If you now go online looking for a city break there is a very specific video that appeals to the 25 to 35 age group. If you want to tour the Wild Atlantic Way, there is a more relaxing piece with dramatic scenery. Through social media they have targeted their audience. Tourism Ireland has an agreement with HBO enabling them to promote Game of Thrones and is also highlighting the amazing Star Wars footage on the Skelligs.
Ciaran O’Neill
At a grass roots level, most hotels don’t have the technology. Our guests are booking using their smart phones. In the hotel of the future guests will use smart phones to enter their rooms and switch on the entertainment system. We need to embrace technology and to invest in it, particularly with the younger generation of guest.
Niall McKenna
All our restaurants are online and interconnected. Particularly with our younger members of staff, technology is part of their DNA.
John McGrillen
There are people in the tourism business who are not tech-savy. We need to hand hold them, to get them comfortable with the technology and to get them to use it. We have also a lot of small technology businesses who could support the sector. How do we broker a relationship between both groups?
How do we ensure co-operation across Tourism NI, Tourism Ireland, the regional tourism bodies and local councils to avoid duplication and maximise resources?
Brian Ambrose
Tourism Ireland and Tourism NI have just agreed a joint campaign around Game of Thrones. I have never seen co-operation between both bodies as good as it is today and that has been down to John’s leadership.
John McGrillen
We need to avoid duplication. Visit Belfast has a website trying to attract visitors to Belfast, Tourism NI has a website for visitors to Northern Ireland and Tourism Ireland has a website trying to attract people to the island – all of this is content hungry. Rather than have duplicated content, particularly video content which is expensive, we need to co-operate and share these resources.
Niall McKenna
One of the biggest problems I see with visitors coming into my restaurants, particularly those in the 35 plus category who tend to come in later after 9.30 pm, is where do they go after eating? They go back to their hotel. It’s not about night clubs but more wine bars. I can’t serve them a glass of wine at 11.30pm. We need to get the licencing laws sorted out if we want to attract overseas visitors.
There is also the attitude that we don’t want hen or stag parties. I have been to Barcelona three times on stags but I have also been there twice with my family.
Howard Hastings
The arrival of student accommodation into Belfast city centre will in itself reinvigorate the night time economy. The most attractive places for visitors to go are places where the locals are enjoying themselves.
In the Republic not only do they have the students in the cities, they have specialised in bringing them in to learn English. They don’t spend much when they are very young and learning English but they come back later in life. The lifetime spend is huge.
John McGrillen
We don’t need grand strategies but we do need an integrated approach to tourism. It is more about having a vision and an action plan. The university move will be a huge catalyst. It will bring in improved student accommodation and with more overseas students whose families will visit them. They will develop a relationship with the city. That should lead into DSD’s Streets Ahead programme to make that part of the city more attractive. It is about bringing all these pieces together.
David Gavaghan
There is one platform that hasn’t been mentioned yet: sport. This is a huge opportunity, particularly for younger visitors. The Wild Atlantic Way isn’t just about older visitors, it is about surfing and mountain biking.
Also the Wild Atlantic Way stops at the border. For visitors there is no border – we have a tendency still to hard code the border. When it comes to the global opportunity it is simply the experience when you arrive on this island.
Choose one thing policy makers and those in the tourism industry should focus on to help develop tourism in Northern Ireland?
Ciaran O’Neill
We need to get the simple things sorted out. Investment in infrastructure, roads and transport is critical. When you leave an airport in Scotland every 10 minutes there is a bus taking you where you want to go, you don’t have to wait three or four hours to get somewhere. Investment in infrastructure and signage will help allow people to be able to spend with much more ease.
Brian Ambrose
We need to grow direct access to mainland Europe.
Niall McKenna
The key thing is training within businesses, schools, colleges and universities and encouraging the mind-set that Northern Ireland’s tourism industry is a great industry.
Howard Hastings
The concept of the year of food and drink has encouraged different government departments to work together for the first time and now private sector enterprises are starting to cluster and focus on the year of food and drink. People who are interested in the same output are now talking to each other when they hadn’t been doing so before. Building on and supporting these conversations is key. We are now at a stage where the tourism economy’s contribution to Northern Ireland is around half what the manufacturing economy’s contribution is.
The proportion of government spend that goes into supporting the manufacturing economy is over represented in comparison with tourism. We need to get the spend to follow the outputs and if we are demonstrating and producing outputs capable of delivering more, then more money should be spent on this sector.
David Gavaghan
We have shown over a period of time that hosting single events can transform places. The 2023 World Cup Rugby bid is our huge opportunity. The thing we need to work out quickly is are we going to have the right stadia to accommodate the various teams? We have the opportunity with this bid to create something magical across this whole island. We have shown time and time again that a single focus on something at all levels produces fantastic results.
Andrew Porter
At present we are missing a big trick as we haven’t fully grasped the opportunity screen tourism is presenting us. If we are looking to take advantage of it we need to move fast.
John McGrillen
Part of our task is to help the private sector help itself, particularly in sales and marketing. We need to get out and sell on the back of what we and Tourism Ireland are doing. One of the big challenges Tourism Ireland has is getting industry from here onto the sales platforms they create.
