"Selling the idea of Ireland to the Japanese market has proven to be much easier than selling the proposal of a cross-Border body on tourism to some of our politicians," one seasoned player in the North's tourism industry said when asked to outline the positive aspects of the cross-Border bodies.
Differences in opinion on the status and composition of a cross-Border body on tourism between parties at Stormont proved to be stumbling block towards agreement on North-South bodies. However, this was resolved and agreement was reached in December. The Northern secretary, Dr Mo Mowlam, plans to publish her legislative programme, including details on the bodies, by March 10th.
Instead of an official implementation tourism body, Bord Failte and the Northern Ireland Tourist Board will establish a publicly-owned company to provide a number of services. The new company will replace the existing Overseas Tourism Marketing Initiative.
Representatives of the trade and tourism industry are currently lobbying parties in the North to harmonise tax and standards and other issues before legislative measures are drawn up and passed by Dublin and London.
Among the proposals being put forward include accelerated capital allowances for tourism initiatives, relief from rates and VAT on accommodation being brought down from 17.5 per cent to 12.5 per cent.
Mr Felix Mooney, the former president of the Northern Ireland Hospitality Federation, said: "Accelerated capital allowances, relief from rates, and rent relief all combine to give the industry in the South a massive head start and massive advantages over the North. There is recognition in the industry that there is a catch-up of investment in Northern Ireland, and we need these incentives implemented to accelerate that.
"If we are marketing as one island, then we have to be able to compete with these disadvantages."
The industry is optimistic that future co-operation on trade and tourism would greatly benefit the North. Mr Mooney explained: "If you combine the strengths of the industry in Northern Ireland and in the South, then these two entities combined will have more impact in the global market place than by working separately.
" We are all here trying to encourage people to visit Ireland, both North and South."
Mr Mooney said he hoped politicians in the Assembly would understand the contribution tourism can created to the local GDP. He criticised the "abysmal" handout for tourism of £13 million sterling from a public expenditure budget of £5.5 billion.
The GDP from tourism is around 6-8 per cent in Britain and around the same mark in the Republic, compared to 2 cent in Northern Ireland.
Mr Shaun Kelly, of management consultants BDO Stoy Hayward in Belfast said: "Visitors to Northern Ireland spend around £250 million, so if the cross-Border bodies work successfully then there is no reason why this figure is not increased to £500 million."
The success of the peace process will ultimately determine the productivity and effectiveness of the cross-Border bodies to increase trade and tourism. Co-operation between both parts of the island is not a new phenomenon to the trade and tourism industry.
However, Mr John Stringer, chief executive of the Northern Ireland Chamber of Commerce, estimates that, while the structures of the tourism body have yet to be put in place, one of the main implications will be the selling of Ireland as an island of Ireland product.
However, if the selling of Ireland as a single destination is to be successful, then there will have to be harmonisation of standards in both jurisdictions, in terms of costs and staff conditions.
According to Mr Kelly: "If you are taking the step of marketing Ireland as one product, then when advertising a four-star package holiday to Dublin and Belfast then both hotels must have the same standards while understanding that both jurisdictions operate under different fiscal policies."
Boosting trade within the island as envisaged under the remit of the Trade and Development cross-Border body will obviously maximise opportunities for companies, North-South, to trade in both parties of the island, and when abroad, to trade together to the mutual benefit of each other.
One company which stands to benefit from any positive aspects emanating from the establishment of the cross-Border body on Trade and Business development and the publicly owned tourism marketing company is Belleek Pottery.
The Co Fermanagh company is situated on the Border and also has recently opened Galway Crystal in Galway. Its managing director, Mr John Maguire, believes closer co-operation could increase sales revenue by up to £250,000 a year if the bodies are established and operate successfully with a "united single voice" to target tourists and attract inward investment.
However, it would seems that, while trade barriers between the North and the Republic are expected to come down with the establishment of cross-Border bodies promoting closer co-operation, another barrier has been erected with the introduction of euro in the Republic on January 1st, 1999. Industry experts believe the North will have to become a "quasi-euro zone" and be seen to be euro-friendly if it is to attract tourists. Some have expressed concern that trade to the Republic will be affected.
