The Other View

Issue No. 6 Autumn  2001

Casting a cold eye on tourism and investment

By John Nixon

In a global context tourism is undoubtedly an expanding and lucrative industry. Any country that can harness its natural and human resources, its history and heritage to attract visitors and enhance its economy should, of course, utilise these resources to maximum benefit. The tourist industry in the post-modern world is well honed and tailored to suit the needs of every type of visitor. Within the tourism market there are horses for courses. For the young going to Ibiza its sun, sex and sangria. American and French war veterans and their families who experienced Vietnam are returning to visit the vast labyrinths of underground tunnels of the Viet Cong guerillas. Likewise thousands of Jews (and gentiles) visit the Nazi concentration and death camps in Austria and Germany. Few tourists go to Bosnia but the more brave and bold go to Jerusalem or Bogata. Tourists' interests therefore are as diverse and varied as human nature itself.

For obvious reasons tourism in the north has a massive deficit to make up. Most foreign tourists, particularly Americans, who wish to visit Ireland will head south. Recent statistics reveal an increase in tourism numbers but the type of 'tourist' visiting the north is hard to quantify. Are visitors travelling from the Republic or from Britain classified as 'tourists' ?. Many tourists domiciled in the Republic make day only excursions to the north (and spend little). Perceptions are everything thus image making and image breaking must therefore be an integral component of any 'northern' tourist strategy.

The reality is that for every Drumcree 1,2 or 3 there are thousands of potential tourists who are saying NO to the North. The sight of 15,000 paramilitaries in balaclavas parading in the capital city does little to enhance tourism. Many visitors to the north east and north west are intimidated by ubiquitous flags demarcating paramilitary territory. Harnessing our history as a tourist commodity may pay dividends ... but not yet. Tourism in the northeast has been dealt a devastating blow. Yellowman, gas cylinder bombs and gauntlets of hate are lethal concoctions. Our most potent tourism commodity is the Irish people themselves. Visitors want to meet the real thing not virtual reality.

However, the increasing political instability and the perennial threat of a return to warfare does not augur well for future investment. Mr Eric Bell, of the Institute of Directors, a member of the influential G7 group saliently remarked on the negativity of international coverage of the north: 'There are a lot of very aggressive hungry regions in the world who want to attract jobs, the global investment market is very competitive.

 Until political uncertainty is taken out of the equation, we are not going to be able to compete in the world." Harland and Wolff know all about it. Where are they now? Down in Dublin mending the Halfpenny Bridge. The economic impact of Drumcree over the last six years is estimated at around one billion sterling. Enough to rebuild the Baltic Exchange or build a few hospitals. The north remains a constant drain on the British Exchequer ... and constant dripping wears away the stone.
The projected and expected dividends for tourism in the wake of the cease-fires have fallen well below the mark. It cannot expect to reap the dividend of a peace process become more an ordeal that an ideal. Despite this there appears to be a cornucopia of optimism within various tourism departments.

Local councils such as Armagh continue to take risks and pour thousands into tourist initiatives. The ten million pound Armagh City Hotel will be completed by March 2002. It may well address the city's infrastructural needs but much more is required to attract tourists never mind enticing them to stay in a building next door to the recently mortared RUC -cum-PSNI station.
Meanwhile, back at Navan Fort heavy boulders block the deserted centre and the Planetarium is no longer the star visitor attraction. The policy of the council and indeed in the case of another proposed heritage centre at Downpatrick is akin to the man who inherits four acres of stony ground and yet proceeds to invest one million in a combine harvester.

It's tragic given the potential that exists for tourism here, but the reality has to be faced and the reality is that the north must focus and prioritise on building an industrial infrastructure that has suffered a protracted heavy haemorrhage. Developing an infrastructure is only a part solution to a much bigger problem that like the incessant rain shows little sign of going away.

Surely a thriving tourism industry is the icing on the cake of a thriving industrial and commercial sector. The North's international image is only a part of the problem. Jobs and industry are vital yet ironically the relative violence and uncertainty mitigate against inward investment. Stephen King a managing partner of Price Waters house Coopers spells out the harsh reality:

"Investors view Northern Ireland initially by perception rather than reality...you cannot assume that investors will react to the security situation alone. Northern Ireland has to deliver a strong overseas perception of political security and stability ... in the short to medium term it will have an impact on our tourism industry but longer term it will also effect our inward investment potential."
Social and economic deprivation breeds and feeds communal discontent. It's a classic 'Catch 22' situation.

Sir Reg Empey, Minister for Enterprise has the final say:
"Political uncertainty and instability are barriers to what we are trying to do in Northern Ireland. We want to be able to attract international mobile investment ...we want to create thousands of new jobs and deliver a new soundly-based economic environment, but the truth is that unless we can overcome the political hurdles that stand in our way, we will not achieve our full potential".  Has peace become an ordeal rather than ideal?

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