Frank Corr on who really calls the shots in Irish tourism.

This article appears in the October/November issue of 'Hotel and Restaurant Times'

Irish tourism policy is formulated by a very small group of people. They are principally Public Servants in the Department of  Tourism Culture and Sport and their nemeses , or colleagues in the Department of Finance.
It is they that initiate every policy proposal which is seriously considered by Minister Mary Hanafin and every prevarication, side-step or blank refusal made in the name of Minister Brian Lenihan. Even initiatives dreamed up by the Minister herself or strongly suggested to her by lobby groups or individuals must be run by these all-powerful officials and must win their seal of approval.

This system is by no means bad. The Tourism Section of whatever the Department has been called over the years, is staffed by men and women of exceptional knowledge of the industry, many years of experience and an overall desire to produce policies which will benefit tourism and the nation. That they are largely anonymous to the public may be regrettable, but is unimportant in the overall scheme of things. Ministers, after all, are appointed to be the public face of their Departments, to take the plaudits when things are OK and the brickbats when they are not. Provided they deliver an adequate budget to their Department, they fulfil a very useful role.
In this context it is difficult to comprehend the continuous noise and media shouting that surrounds the lobbying activities of the industry’s many vested interests. Scarcely a day passes without some group or another decrying one or more Government policy related to our biggest industry, usually without any suggestion of an alternative.
The biggest, loudest, most expletive-ridden and so far unproductive campaign has been in opposition to the Government’s Travel Tax. There is no need for me to identify the prime utterer of the expletives, but a whole host of other interested parties have also called for the immediate abolition of the tax with varying decibel levels. There is ‘no possible doubt whatever’ that Mary Hanafin and her Department managers are now aware of the negative impact which the Travel Tax is having on tourism, although some of the claims are certainly exaggerated. Their problem however lies not out there with the industry, but next door with the Department of  Finance. From the viewpoint of the Finance mandarins who control the Budget and therefore the Government, this Travel Tax is a nice little earner. In 2009, which was a miserable year for tax revenues, it brought in €84m. or around the equivalent of  Failte Ireland’s annual budget. Certainly that was a long way off the €150m predicted in 2008 or the later revised figure of €125m., but it nevertheless matched the sum which Minister Hanafin needed for the development of the industry, the training of personnel and the promotion of  home holidays this year.

It is easy therefore to see the arguments on both sides. Tourism wants the tax scrapped and Finance says OK- but we will have to axe Failte Ireland’s budget.
Take your pick.
It could of course be argued that the tax is costing us a lot more than it raises. Bloxham Stockbrokers analyst Joe Gill estimates the cost to the economy at around €450m a year, but so far Finance thinks otherwise. In any event it can see €84m in hard cash and that is more visible than theoretical macro estimates.

Occasionally of course the  Department listens. Take the case of the free travel for senior citizens arriving here from abroad. That was first suggested by Matt Ryan when he was president of the Irish Hotels Federation and it did eventually make its way into the 2009 Budget, albeit in an incomplete and overly bureaucratic form. It was however an example of a positive suggestion by a lobby group being broadly accepted.

The problem is that such positive suggestions are few and far between. Much of the comment on tourism policy is just negative and when ideas are put forward they are often not costed or estimates of income and expenditure are unrealistic. These ideas just do not make it past Departmental scrutiny.

Another problem with sectoral lobbying is that it is just that- sectoral. Country Houses or five star hotels may want a marketing emphasis on high spending visitors but three star hotels and guest houses may just want volume. Providers of  walking, fishing, cycling, swimming or trekking holidays may want Ireland portrayed as a vibrant rugged sort of place while hoteliers, coach tour operators and restaurants will want an image of relaxing luxury. Airlines like to fly into cities but ferry companies are often tied to coastal ports. In the current set-up we have the added complexity of Tourism Ireland attempting to promote a destination that spans two jurisdictions with differing laws, road systems, currencies and pub opening hours. Satisfying all of these conflicting demands is virtually impossible and therefore policymakers will inevitably leave some sectoral interests dissatisfied.

It would of course be easier for the Department,  if the industry would speak with a single voice. ITIC attempts to do this but is faced with the same array of  interests, It cannot favour hotels, b and bs, carriers, visitor attractions or any of its other divergent members in its lobbying and must instead use broad brush strokes in its representations. This it does exceptionally well in the circumstances, particularly in its strategy of commissioning reports from consultants which display a measure of objectivity.

Apart from ITIC most other lobby groups shout away, largely to give comfort to their members. When RAI, IHF, LVA, VFI et al castigate the Government in speeches or in the media, their rhetoric is really designed to convince their members that they are fighting the good fight. The real policy makers in the Department rarely react to any megaphone lobbying and are far more likely to take seriously the low key correspondence and personal conversations which are part of the everyday communication process between themselves and the industry. In this context I am not even considering the regular bellowing of Michael O’Leary which seems more designed to keep his airline in the headlines than to achieve anything that is remotely positive.

No hint should be taken from this piece that I am advocating media silence on the part of industry organisations. Without their regular outpourings, www.hospitalityenews.com and ‘Hotel and Restaurant Times’ would be dull places indeed. What is important however is to understand where Government policy is defined- and by whom. Very occasionally it can be made by a powerful lobby like the Irish Farmers Association or even by the public when there is a groundswell of outrage. These occasions are however rare. Governments may come and go, Ministers may be appointed and sacked, but the Public Service remains constant.

And it is that constancy and experience that enables quiet, intelligent and dedicated people sitting in Government offices, to formulate, present and have implemented , policies which they believe are for the common good.

ends