TOURISM IN IRELAND

The Effect the World Economic Downturn has had on Tourism in Ireland for the period 2007-2012

Abstract

This research paper attempts to delineate on the remarkable progress of overall economy of Ireland pre-2008 and how the economy plunged into the pool of despair as a result of the global economic crisis. Moreover, the paper talks about the importance of Irish tourism industry as an integral source of income to the country's economy and how the economic slump adversely impacted this market. In addition to this, the paper discusses the strategies the government and Irish tourism operators adopted to recoup and revert back to their old dominant position. This paper concludes with a couple of recommendations, which if followed, can significantly improve the overall economic condition of Ireland, making it the preeminent tourist spot on the globe.

TABLE OF CONTENTS

Introduction…………………………………………………………………………………………………..3

Background of the Economy………………………………………………………………………3

Era of Economic Bust………………………………………………………………………………3

Discussion…………………………………………………………………………………………………….4

Impact of Economic Downturn on Tourism……………………………………………………..4

Irish Mogul's Empire totters as slump tames Celtic Tiger - A Case in Analysis……….....6

Economic Recouping of the Industry…………………………………………………………….7

Conclusions…………………………………………………………………………………………………..9

Efforts to Improve the Overall Economy………………………………………………………..9

Refurbishment of Tourism………………………………………………………………………..10

Introduction

Background of the Economy

The economic progress of Ireland in the past few years is one the most remarkable success stories around the globe. In terms of economic expansion, Ireland drastically outshined its European counterparts, whose labor force doubled in twenty years. In this period of relentless growth, the country stirred from a level of affluence that merely was at par with the Europe's average of two-thirds to a preeminent position in the continent. The country that only had a career choice of emigrating unlocked massive career prospects not just to its natives, but also to a vast number of newly nationalized countrymen. This robust upsurge could be attributed to a number of interrelated factors: lucrative exchanges rates, persistent growth in U.S. economy, and low energy prices were some of the significant external causes. Likewise, the membership of Ireland in E.U. brought about considerable financial support which aided in the development of infrastructure, growth in agriculture and training, and easy access to the single market of E.U., whilst the membership also catered to a steady currency rate. However, the major in-house policies that fostered this growth included establishment of a favorable atmosphere for Foreign Direct Investment (FDI), abundance in supply of cheap and skilled labor, industrial harmony, and a participative style of management of change nurtured by communal alliance.

Era of Economic Bust

The good days of Ireland turned into shambles when an international crunch stroked the country in 2008. The country that was once beckoned as the 'Celtic Tiger' and where had just begun to drive into, instead drive away from, its grounds in quest for a superior quality of life now suffered together with the rest of the world from the Wile E. 'Coyote moment' of the global economic system (The New York Times, 2009). The prevailing recession, increasing energy costs, adverse exchange rate movements, accompanied by rapid increase in unemployment and aggravating public finances plunged the Ireland's economy back to earth into the pool of ...