DIRECT AND TANGIBLE BENEFITS TO THE CITY OF GALWAY
Employment Impact from Construction
Recent analysis carried out by the CIF suggests that every €100 million spent on construction creates an employment impact of 1,000 man-years of employment, returns over €30 million to the exchequer in VAT and Income Tax and saves €30 million a year in social welfare payments. This does not include Corporation tax and the indirect jobs and spend generated in the economy as a result of the spend.
Such economic activity and generation of finance would be of enormous benefit to the local and national economy and would be totally consistent with Ireland’s longer-term needs and economic strategy.
The Volvo Ocean Race’s first ever Irish stopover in Galway in May 2009 was worth €55 million to the West of Ireland, according to an independent consultancy study by consultants Deloitte LLP, with €45 million in direct expenditure and €10 million in indirect expenditure in Galway and the West.
The event attracted a total of 650,000 spectators to the Port of Galway Race Village and Salthill Promenade during the fortnight. The study by Deloitte shows that in spite of the economic recession, the Volvo race ranks third in terms of spin-off generated by major sporting events in Ireland in recent years – exceeded only by the 2006 Ryder Cup, which was valued in direct expenditure at €143 million, and the Six Nations rugby tournament in 2008, valued at €57 million. The study says that the event generated some 200,000 bed nights in the area in late May and early June.
An analysis of spectator identity indicates that some 52% were from the region, and 17% from elsewhere in Ireland, with 2% being Irish visitors who extended stays to see the race. Some 8% were international visitors travelling specifically for the race, and 10% international visitors who extended a stay. Some 11% of the total were classified as “non-local” and due in the area regardless of the event.
Among a total estimate of 87,000 visitors to the west for the race, 43% were from Continental Europe, 19% from Britain, 17% from Northern Ireland, 11% from North America, 5% from Australasia and 5% from elsewhere.
THE POTENTIAL CONTRIBUTION FROM THE CRUISE SECTOR
A report prepared by UCC for the Port of Cork estimated the contribution made to the county and region by expenditures incurred by Cruise Liner visitors and by crew members using the Port of Cork as their access point in 2007 when 40 cruise vessels visited the Port with 45,000 visitors.
About 80% of cruise passengers generally availed of tour opportunities while crew generally remain at the moored port. Additionally, cruise vessels often purchase local goods and services, e.g. refuse collection, fresh water and produce particularly local unique produce, courier services and minor repairs, and buy-in of local entertainment at ports which they visit, all of which have an economic benefit to the area.
The overall contribution, direct and indirect, was calculated to be some €43.5 million and 212 FTE jobs were supported. This level of contribution to the tourist industry indicates the importance of attracting and encouraging this type of traffic to the Port region.
Dublin Port recently noted that in 2009 its cruise business, comprising almost 80 cruise liners carrying 120,000 passengers and crew, contributed up to €50 million to the local economy.