New report highlights "significant contribution" drink industry makes to local tourism
A new report from the Drinks Industry Group of Ireland (DIGI) has highlighted the 'significant contribution' that the drinks industry makes to the tourism sector in Cavan. The report The Contribution of the Drinks Industry to Tourism, Festivals and Sport, by Anthony Foley of Dublin City University Business School, found that products, services and activities provided by the drinks industry play a huge role in driving Ireland’s tourism industry, generating €253 million in tourism revenue for the East and Midlands in 2011.
The report found that the network of over 8,500 public houses, hotel- and other bars, in addition to over 2,000 licenced restaurants across Ireland; provide physical facilities and services for tourists particularly in rural areas. In 2011, there was 212 pubs in Cavan and in 2010 there was 10 hotel and other full bar on licences. This supported the geographic spread of tourism and regional development.
The drinks industry plays a significant role supporting event-based tourism through its sponsorship of sporting organisations, valued at €35 million each year; and its support of various cultural, arts and music festivals country-wide. Failte Ireland estimates that over 400,000 overseas visitors to Ireland attended a festival generating two million bed nights and €448 million in 2010. In Cavan, festivals, sponsorships and events supported by the Irish drinks industry include Fleadh Cheoil na hEireann.
The contribution of the industry to the tourism sector was recently acknowledged by the Joint Committee on Transport and Communications in its report on Sponsorship of Sports by the Drinks Industry: “without sponsorship [by the drinks industry], organisations would find it extremely difficult to host major sports events in this country, from rugby to horse racing, which would, in turn, impact negatively on tourism revenue.”
The author of the report, Anthony Foley, commented: “This report highlights the significant role that public houses play in the geographic spread of tourism and regional development. It shows that public houses are an important feature of the Irish tourism experience, providing physical facilities, services and entertainment for tourists particularly in rural areas.
“As identified in the report, the drinks industry is also critical in supporting sports events and festivals, which are particularly significant for generating domestic tourism. There are approximately 900 festivals and events in Ireland every year and the drinks industry is a major sponsor of these festivals. It is conservatively estimated that drinks industry sponsorship of sporting events in 2012 amounted to approximately €35 million. The report also found that 49% of VFI members support either a local sports team/club or local event.”
The Chairperson of DIGI and Diageo’s European Corporate Relations Director, Peter O’Brien said: “In light of 2013 being the year of the Gathering, the ongoing debate about alcohol sponsorship of festivals and sports, and the critical role that tourism will play in Ireland’s economic recovery, this report demonstrates the importance of the sector. With tourism currently operating well below potential, what is particularly significant is the important role that the drinks industry will have in supporting the direct tourism marketing effort. What’s particularly of note in this report is the role that the drinks industry plays the geographic spread of tourism and regional development, generating €253 million in tourism revenue for the East and Midlands.
“In order to avoid continuing damage to a vital national industry and to ensure that the drinks industry can continue to contribute to tourism growth, DIGI is calling on the government to reverse last year’s punitive excise increase and to ensure price competitiveness of the Irish tourism product, by maintaining the low VAT rate of 9% for the hospitality industry.”