After a very difficult season in 2009, the Irish tourism industry is relatively more optimistic about its prospects for this year, with almost two thirds of operators expecting that business in 2010 will be similar or better than last year according to the latest Fáilte Ireland research.

This was the scenario outlined at this year's annual Fáilte Ireland Tourism Industry Briefing in the Clarion Hotel, Sligo on Monday.

During a series of presentations and a panel discussion, Fáilte Ireland pointed out that the current indications are that 2010 will be another tough year for Irish tourism as many key overseas markets continue to battle adverse economic conditions.

Home market prospects remain unclear although consumer research indicates further potential as Irish people cut back on foreign trips.

Overall, however, tourism operators are more optimistic about the coming season than they were a year ago according to Fáilte Ireland's regular Tourism Barometer.

Heading into last year, only 20% of tourism operators expected business to either hold or improve.

This year, 63% expect 2010 to be on a par or better than 2009. A majority expect employment levels in 2010 to be the same as 2009, while less than one in twenty acknowledge the prospect of any increase.

Successful steps taken by individual businesses in 2009 to cut costs substantially paid off and have put the industry on a stronger footing than a year ago. However, businesses, including many in the North West, are now expressing deep concern about the continuing high costs associated with energy, insurance and service charges. The unfavourable Euro/Sterling exchange rate also remains a particularly acute issue for the industry in the North West. Fáilte Ireland's CEO, Shaun Quinn, drawing on these indicators, pointed out -

"This time last year, as we surveyed the tourism landscape, the outlook amongst tourism operators was universally bleak, prompting a widespread belief that 2009 was all about survival. This year business sentiment has shifted somewhat, now operators are expressing greater confidence about the immediate future and at the very least are expecting greater stability upon which to begin recovering market share.

"That said, 2010 will still be a year of tough trading. Pressure on revenues remains intense and while many operators have taken tough steps to reduce those costs within their control, the continuing high level of local authority charges, energy costs and to a lesser extent restrictive pay structures are collectively placing an undue burden on the industry.

"Hopefully, this year will be the one where we turn the corner. However, there is no room for complacency and Fáilte Ireland will be stepping up its efforts - from helping to sustain individual businesses to stimulating consumer demand - to develop Irish tourism to reach its full potential." Priorities for 2010

This year, Fáilte Ireland will focus its investment support for the industry (including the North West) on three core areas:

Supporting key tourism businesses to increase their international customer base, better manage their cost base, improving overall performance and sustaining employment levels.

Investing over €20 million under its capital investment programme to improve and broaden the appeal Ireland's portfolio of tourist attractions, activities and tourism related infrastructure. Investment in business, sporting and cultural events will also be increased as all offer good prospects for tourism growth in 2010.

Launch its biggest ever home holiday marketing programme, as a central plank in its strategy to increase the home market share of the overall Irish leisure break market. The domestic market now accounts for 65% of business in the intensely competitive hotel sector. Research indicates that Irish people are less likely to travel abroad in the current climate, presenting an opportunity for the home breaks market this year. A particularly notable issue which has come through strongly in Fáilte Ireland research is that Irish people now see Ireland as a good value destination, and consumers are acknowledging the excellent offers and value for money now available in the market. Overseas Markets

Tourism Ireland, the organisation responsible for promoting the island of Ireland overseas, plans to grow visitor numbers to the island of Ireland by +3% this year - attracting an additional 230,000 visitors - giving a 2010 target of 7.85 million. This outcome will mean that tourism to the island of Ireland will grow ahead of the competition. Tourism Ireland's marketing investment has been refocused, to generate immediate returns for the tourism industry. Investment will be concentrated in Britain, Germany and the US, based on research which identifies these markets as our best prospects. Tourism Ireland will also significantly increase its investment in promoting value offers.

Great Britain is the largest single market for tourism to the island of Ireland and following an in-depth review Tourism Ireland has produced a blueprint for the future, to restore growth from this important market. Some of the key actions from the review include a new focus on value; differentiating a holiday here from one in England, Scotland and Wales (our competitive set in GB); and re-engaging and re-energising the travel trade in GB. Overall, a minimum of €12.8 million will be invested in GB marketing in 2010 - which translates into at least a €1 million marketing spend on average each month.

Tourism Ireland will increase its investment in Germany in 2010 to capitalise on this market. Activity includes a national TV advertising campaign for the first time, as well as co-operative campaigns with carriers. In North America, the organisation is executing strong campaigns emphasising the convenience and value of a holiday here, as well as compelling reasons to visit.

Mr Paul McLoone, Head of Operations for Fáilte Ireland in the North West pointed out that despite the economic downturn, the national tourism development authority supported a busy year of tourism activity and provided training to hundreds of members of the local industry.

Over 500 members of the trade in the North West region trained in areas such as Web Check, Web Skills, Finance/Profit Management, Food Cost Control, Marketing on a Shoestring, Chefs Workshops, On-line Marketing and Sales & Rates negotiating skills. On-line and related courses have proved the most popular courses in the North West in 2009 and it is felt that this reflects the increasing importance to the industry of this communication channel.

Fáilte Ireland has also invested significantly in the local tourism product. Overall, a total of €5m was spent on infrastructure in the region since 2007 with almost €1.2m invested in three iconic tourism sites: Ben Bulben Sligo . . . . . . . . . . . . . . . . . . . . . €342,000 Sliabh Liag Donegal. . . . . . . . . . . . . . . . . . . €515,000 Glencar Waterfall Leitrim - . . . . . . . . . . . . €262,500 Other highlights in tourism locally during 2009 included:

Fáilte Ireland North West launched tailored Tourism Learning Networks in March which make the training and networking even more relevant to the participants especially in the development and promotion of regional tourism hubs. Themes include "Food" and "Ecotourism" and a total of 60 participants signed up to participate.

Fáilte Ireland North West in conjunction with the Greenbox launched the Eco-tourism Handbook. The 'Ecotourism Handbook for Ireland' is aimed at people working in tourism and is a concise guide to help tourism businesses operate in a green environment.

2009 saw the 70th Anniversary celebrations of WB Yeats. The activities were officially launched on the 12th of June in Sligo, with a broad range of activities and events making the 2009 Summer School the largest to date

In 2009 Failte Ireland grant aided a total of 32 events at a value of €240,000 including the Earagail Arts Festival and Sligo Live. Previewing the year ahead, Mr McLoone emphasised that trading conditions would still be tough and that:

"Fáilte Ireland will continue to provide businesses and operators with all the tools, training and advice they need to work in the current environment. In addition, we will continue our work in marketing and development to improve the trading environment for the local industry." Surveying 2010, Mr McLoone also mentioned:

Under the Cross Border INTERREG IVA Funding Programme Fáilte Ireland in the North West will aim to bring to a successful conclusion some of the INTERREG IVA applications. This will help deliver enhanced product and marketing opportunities through this €30 million fund. This funding will be very important to our longer term competitiveness and our medium term ability to get a powerful, clear message into the Ireland and overseas market, through co-operation with Tourism Ireland in the delivery of Cross Border Marketing.

The Region is also well positioned in other overseas marketing initiatives through the Western Regions Adventure and Culture Brand, and Lakelands & Inland Waterways projects - with a strong emphasis on communicating access into region. These initiatives present excellent opportunities for the trade in the region to market their products overseas.

Joint Marketing Partnership Fáilte Ireland will continue its successful delivery of joint marketing partnerships with campaigns with the local trade within the Home Holidays Market both North and South. It is estimated that the local partnership campaigns will have a value of well in excess of €500,000 in 2010. Concluding, Mr McLoone said:

"Despite some signs of hope, this will still be a tough year for all of us here in the Industry and it is important for both the private and public sector to work together in order to help the region reach its maximum potential. Fáilte Ireland in the North West will place major emphasis to work with the industry to increase business from the Republic of Ireland Market and to retrieve the significant business that we lost from the Northern Ireland Market in 2009. Tourism Ireland is targeting a 3% growth from the overseas markets in 2010 and it is important that this region makes significant gains especially from the UK Market."