Investment in tourism has never been higher, as the Government looks to the industry to boost the economy writes | Laura Slatteryin the first of two articles

SHAMROCK FATIGUE will by now have fully set in among jaded locals wading through the post-St Patrick's Day debris, but Ireland's tourism chiefs will be hoping that we don't all throw away our "kiss me, I'm Irish" hats just yet.

With the implosion of the construction boom, tourism has "the potential to again claim its place as a reliable, considerable and solid contributor" to our economic wellbeing, according to Minister for Tourism Séamus Brennan.

Last year, tourism accounted for 4 per cent of the Republic's gross national product (GNP), employed more than 250,000 people and spun revenues of more than €6.5 billion. Here is a chunk of the economy fuelled by holidays, not houses. More money will be spent on marketing and developing the island's attractions to overseas visitors over the next six years than ever before. So far in 2008, however, it looks like the industry is going to need all the help it can get.

The dollar and sterling have weakened against the euro - disastrous for convincing price-sensitive tourists to grace our shores. Higher oil prices are pushing up jet fuel and petrol costs. And to make matters worse, the proximity of St Patrick's Day to Easter has hurt mini-break trade and promises a quiet April.

As our two most valuable markets, Britain and the US, teeter on the brink of recession, it is little wonder that the industry now hopes to promote Ireland as cheap and cheerful. "Ireland - Can You Afford Not to Go?" is the tagline for Tourism Ireland's spring marketing campaign in the US.

Last year, more than 9 million people visited Ireland, with 7.8 million of those venturing into the Republic. Some 5 million came from the US, with 1 million people crossing the sea from Britain.

"We're going to have our work cut out to keep those numbers up," says Simon Gregory, Tourism Ireland's director of brand development and markets.

But the dollar was also in the doldrums last year and the number of US visitors still grew, he notes.

"It might be that they stay for shorter periods this year or downsize from a five-star to a four-star or from a four-star to a three-star," says Gregory.

John Power, chief executive of the Irish Hotels Federation, puts it like this: "The dollar has fallen 15 per cent since last year. Hotel prices aren't moving, but to an American they will appear 15 per cent more expensive."

At Fáilte Ireland, the agency responsible for developing the Republic's tourism industry, chief executive Shaun Quinn isn't making any firm predictions.

"Lead times from looking to booking have shortened considerably, so it is very difficult to look ahead any more. There's no crisis or anything like that, it's just the not knowing."

The industry is now counting on airlines to release competitive fares rather than leave seats empty. Air fares that don't cost the earth are the key to keeping the critical pipeline of US visitors, whose average spend per holiday is more than twice that of whistle-stop British city-breakers.

Dick Bourke and Eamonn McKeon, the chairman and chief executive respectively of the Irish Tourist Industry Confederation (ITIC), were optimistic at its agm in Dublin last week. New Aer Lingus routes to Washington and San Francisco will help to offset dollar difficulties and recession worries, they say, and help US revenues grow 3-4 per cent. One upside to the dollar's slide is that it encourages Irish people to decamp en masse Stateside. This might sound bad for a tourism industry where 75 per cent of hotel room nights outside Dublin are occupied by domestic holidaymakers, but old "holiday at home" versus "holiday overseas" debates largely subsided once Irish consumers found they were able to afford both, while the trend encourages airlines to keep their routes in place, even if a relative trickle of wealthy Americans fly in the other direction.

The ITIC predicts tourism revenues from Europe will grow 6-7 per cent this year, with 7-8 per cent growth in the domestic market. This sounds good until it's compared with 2007's double-digit growth.

"We definitely don't want to be merchants of gloom," says McKeon, who hopes for revenues of €6.8-€6.9 billion this year.

"The main thing is we need to stay committed on the marketing side. After 9/11, Ireland kept its promotions strong and recovered faster than other countries, who just gave up. That's like taking the cornflakes off the shelves."

Some €800 million has been set aside for tourism under the Republic's 2007-2013 National Development Plan (NDP) - "the best grant that tourism has ever been given", McKeon says.

Some €335 million of this money is dedicated to promoting the country in key international markets, including China and India. In 2008, another €170 million will be spent on expanding the industry. Tourism Ireland, which is an all-island body, has a €50 million marketing budget for 2008.

Even with this cash, sending out the right images of Ireland is a fine art. Last year's independent review of "brand Ireland" confirmed earlier suspicions that the legendary Irish friendliness and the beauty of the scenery are what bring visitors here.

The Irish "have a swagger about them", according to Tourism Ireland, whose research confirms the notion that Ireland extends a "genuine welcome" to tourists - presumably instead of fixed-smile "have a nice day" fakery.

Claims that this reputation is under threat because of the rising numbers of international workers in the industry are without foundation, Brennan recently told an IHF conference.

It doesn't seem to have diluted the image so far: last week, users of Tripadvisor.com, the independent travellers' truth-telling reference, voted Ireland the friendliest destination.

Nevertheless, the brand review has recommended more cosmopolitan and more urban marketing images. "We need to tell people that Ireland is not all rolling hillsides and sleepy villages," says Gregory.

Less than polite ways of describing Ireland have evolved in tandem with the Republic's transformation. Irish people "make a sport of wallowing in false modesty" and are "obsessed with rip-off culture", according to the latest Lonely Planet guide, which labels Temple Bar "Temple Barf" and notes: "Ireland's 40 shades of green don't, it seems, include the all-important eco-green."

But with more plans for tourism than Seán Dunne has for Ballsbridge, the Government isn't relying on antiquated romantic visions of the Emerald Isle to push things along.

While Tourism Ireland drums up overseas media advertorials, recruits the nation's leading chefs for US television cameos and stages virtual St Patrick's Day parades, there are also people on the ground making sure the signposts are pointing the right way.

Under the NDP, €317 million has been set aside for developing "the tourist product" and improving vital infrastructure. This includes the delivery of the National Conference Centre, which will help the State double business tourism revenues to €1 billion by 2013, and a €100 million "things to see and do" fund.

Regional development plans for 2008-2010 have set targets for visitor numbers and revenues and highlighted projects to be upgraded or started from scratch.

The vision includes: developing a cross-Border St Patrick's trail; building genealogy centres to capture "roots tourism"; competing for more lucrative televised sports events (the Ryder Cup brought in €240 million to the economy in 2006), promoting food, equestrian and eco-tourism and a fresh approach to exploiting the Republic's cultural heritage.

Competition is fierce. Ireland is green, but so is New Zealand. People can play golf in sunnier climes or learn English in Britain, and expectations are high, according to Tourism Ireland. Visitors no longer just want a break from their home country. They want "braggable experiences".