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tourism ‘Crucial’ year for tour operators

Some UK travel companies and tour operators will have to “radically” alter business models to adapt to new mar- ket conditions and survive in 2012, according to KPMG. Te advisory firm said 24

operators went into adminis- tration last year and expects more to follow over the next year, with the high-volume model in “terminal decline”. KPMG highlighted the

growth of low-cost carriers; online booking; and ongoing economic uncertainty could make 2012 one of the “most challenging” for the sector. Fuel cost and Air Passenger Duty increases

KPMG is expecting more UK tour operators to struggle throughout 2012

will also have an impact on tour operators over the coming 12 months, with KPMG outlining five steps that businesses should consider. The firm recommends investment in online and mobile technology; the offering of

“dynamic products” to meet changing customer needs; and focussing on cost reduction. Elsewhere, KPMG said tour operators and

travel companies should look at ensuring a range of “strong brands in high margin spaces”, while maintaining a healthy balance sheet.

Ireland’s national body to promote Dublin’s tourism

Fáilte Ireland, the national tourism develop- ment authority for Ireland, is now responsible for Dublin’s tourism promotion as part of a gov- ernment shake-up of arms-length bodies. Dublin Tourism is to be merged with its par- ent organisation as part of a rationalisation

being undertaken by minister for transport, tourism and sport Leo Varadkar. Varadkar said: “Dublin Tourism has per-

formed a valuable role in promoting the capital, but inevitably there has been consider- able overlap with the work of Fáilte Ireland.”

Official Magazine Isle of Wight in line for £3m tourism boost

A new private sector-led organisation is to be created with the help of £3m of pub- lic funding to promote the Isle of Wight as a visitor destina- tion under plans announced by the council. Isle of Wight Council

(IWC) is planning to consult with the island’s tourism sec- tor on the proposals, which will lead to the establishment of the new destination man- agement organisation. According to the local

authority, the proposals will comply with government tourism policy that includes the creation of partnership-based tourism organisations led by the industry. IWC cabinet member for the economy and the environment George Brown said:“In these

© CYBERTREK 2012 A new industry-led group is to be set up in order to promote the island

most difficult of financial times it is an impor- tant commitment of the council to consider allocating a significant sum to tourism for the next nine years.”

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