Forging the future

Since opening at Easter, Butler's, a luxury townhouse development in the centre of Dublin, has been achieving average occupancy levels of 90%. Co-proprietor George Finnegan is now looking ahead at how to balance yield over the coming months, particularly once the tourist season is over.

IMAGINE the following: tourism is the fastest growing sector of the economy; last year the four-and-a-half million visitors to the country outnumbered residents, bringing in IR£2.6b of revenue; one in three of all new jobs comes from tourism; tourism is growing at a rate of 15% per annum, outperforming all other European destinations.

It sounds too good to be true, but these are the facts of Irish tourism as told by Orla Brannigan, general manager Europe for the tourist board Bord Failte, to an audience of hoteliers from both sides of the Irish Sea at Butler's recent open day.

So, if it's so good, why bother changing anything?

Brannigan was quick to point out that, despite the current feel-good factor about Ireland, there was no excuse for complacency. In fact, Bord Failte is anything but complacent. In the past two years it has spent around IR£13.5m researching views on Ireland, resulting in a new media campaign intended to ensure that the country remains at the top of the tourism agenda.

"At the moment, Ireland is still catching up," said Brannigan. "There are plenty of drivers in our favour, but this won't always be the case. We need to plan for the future, as well as extend seasonality and encourage tourists to venture outside Dublin."

Research had shown that Ireland left visitors with a "hazy, green image which was vaguely positive", particularly in US markets. There was no spontaneous awareness of food, culture or beaches. Memories were generally unsophisticated, and centred on groups of people going to the pub and enjoying the "craic". The traditional shamrock was out of date, and meant little to overseas markets.

One common theme was that of the Irish welcome. In all markets where research was carried out, it was the people who were most remembered, and it was to tie in with this emotional experience that the new campaign was formulated.

Alongside advertising there is a new, more contemporary symbol for the country, depicting two figures embracing and exchanging a shamrock. All written material is accompanied by the strapline: "Live a different life."

The way forward would not be just about counting heads, either, stressed Brannigan. It would focus on increasing revenue and targeting new business. This could include a much greater emphasis on the incentive and conference business, particularly in the markets of Germany and Japan.

The challenge would be to find funding to promote the campaign once EU money dried up in 1999. This would involve working closely with industry as well as continuous lobbying of government, which in taxes and excise duties takes 54p from each £1 spent. To date it is unsure how this revenue will be raised, but it is thought that it could be through partnerships with manufacturers of traditional Irish products.

Following Brannigan, Oonagh Murray, marketing director for CMV Hotels, the 56-strong consortium of which Butler's is a member, talked about the advantages and disadvantages of belonging to a consortium.

The relationship was largely a matter of trust, she said, and some of the pitfalls could include subsidising other members which did not meet the required quality standards. But the benefits far outweighed the disadvantages. "Belonging to a consortium is a lifeline," said Murray. "Change is everyone's nightmare. We need to address problems together."

Gaining access to international markets was another reason to be a member of a consortium. "How else could a 15-bedroom hotel in rural Ireland market itself to other audiences?" Murray asked.

For George Finnegan, belonging to CMV has certainly had its advantages. In the first year of trading, he is hoping that around IR£50,000 of bookings will come from this source.

Finnegan delighted his audience with his frank account of the Butler's story, admitting that a total spend of IR£1.5m had exceeded the original budget by 50%. "Some people would say it was an insanity putting so much money into a 20-bedroom hotel, but we had to stick with our vision, and this meant choosing the best quality for everything." The secret of success was sticking unwaveringly to a focused vision, he added.

John Burke of Doyle Hotels asked him whether he would have done anything differently. Yes, replied Finnegan. When deciding on who to appoint as builder, ability to deliver would have been more important than price, a critical factor given that Butler's missed two opening deadlines over key weekends when international rugby matches were being played along the road.

"What would Finnegan do once he got bored with Butler's?" asked Norman Springford, owner of the Apex hotel in Edinburgh, another Caterer Adopted Business.

Nothing immediate, came the reply. First, there would be a period of consolidation of at least a year, and then maybe expansion. There was still a high demand for rooms in Dublin, and another Butler's could be in the offing. As with the original, the emphasis would be on offering quality rooms, and not restaurants. "There are so many quality restaurants in Dublin that people don't want to eat in hotels," Finnegan said.

And maybe there was life beyond Dublin, too, in other high-demand locations such as Galway, Killarney or Cork.