News Release -
Shannon Development Continuing To Plan For The Future
Company publishes 2009 end of year review
“While 2009 proved another challenging year for business sectors across the Shannon Region, there were a number of positive outcomes achieved during the year,” said Dr Vincent Cunnane, Chief Executive, Shannon Development, Speaking at the publication of the Company’s 2009 end of year results on Monday 15th February 2010.
Shannon Development 2009 highlights:
• €15.5m investment supports approved for Shannon Free Zone companies leveraging €57m in investments
• €9.6 million invested in property solutions for foreign and indigenous companies
• €4 million project at Tipperary Technology Park near completion
• Shannon Development own tourism generated initiatives produce significant results – 38 tourism deals signed with key travel companies world-wide
• Shannon Development’s tourism campaigns yield almost 600,000 additional bed nights, generating €47m visitor spend.
• New Limerick Development Division established to promote Greater Limerick Area
• Shannon Development becomes the first state agency in Ireland to use Sat Nav to map tourist attractions & accommodation.
Shannon Free Zone (SFZ) companies performed well generating €3.5 billion in sales of which 94% were to export markets, en par with the previous year (2008 latest available statistics). Shannon Development approved €15.5 million in financial supports to Shannon Free Zone companies in 2009. This support leveraged €57 million in investments, the largest of these was a €50 million R&D investment by Intel at Shannon Free Zone.
260 new jobs were created at Shannon Free Zone in 2009. However, employment numbers at the Zone fell 11% year on year, from 7,107 in 2008 to 6,320. This decrease is in line with the national average and reflects the extremely difficult trading environment for industry at Shannon Free Zone. However it should be noted that almost 80% of these job losses were as a result of down sizing, and not closures.
PRESERVING AND PROTECT JOBS - A KEY FOCUS
Commenting on Shannon Free Zone results Dr. Cunnane said, “Given the challenging climate we are living in, a key part of our focus as the regional development agency and tourism authority for the Shannon Region, is to preserve and protect jobs.
For instance, to help address some of the immediate challenges facing the Shannon Free Zone business community during 2009, Shannon Development assisted 14 SFZ companies to secure €2 million support through the Government’s Employment Subsidy Scheme (Temporary). As a result, these companies have committed to maintaining 1,800 jobs.
In December we undertook a similar exercise following the extension of the scheme to include tourism businesses. We actively worked with the tourism trade in the Shannon region to advise and assist potential applicants. A significant number of tourism companies applied for funding under the scheme and have committed to maintaining over 1,500 jobs.
Between the two initiatives, it is hoped that a total of 3,300 people will continue to be able to support themselves and their families in this Region, and spend in the local economy,” he said.
PLANNING FOR FUTURE INDUSTRY NEEDS
“To entice indigenous and foreign direct investment companies, it is essential to provide a pipeline of leading edge business property solutions ahead of demand. As a regional development agency Shannon Development is committed to planning for the future, by positioning the Region to take advantage of the global economic recovery which will come. This is why we invested €9.6 million in a range of property developments around the Region in 2009.
Among these is a major €4 million expansion for Tipperary Technology Park (TTP), Thurles, Co. Tipperary, which is due for completion shortly. This will be the third building on the business campus and is part of the Company’s continued development of its Knowledge Network of five key business and technology parks around the Shannon Region. In total Shannon Development operates 57 business and technology parks around the Region which offer a range of property solutions for business entrepreneurs. This represents one of the largest portfolios of business parks in Ireland.”
DELIVERING INNOVATIVE PROGRAMMES
Speaking about Shannon Development’s continued contribution to regional development, John Brassil, Chairman Shannon Development said, “The Company makes a valuable contribution to the economy of the Region by spearheading a range of innovative programmes. In partnership with its Shannon Broadband company, Shannon Development completed an €18.5 million investment to make broadband connectivity a reality in eight Shannon Region towns and Limerick City; As part of its energy strategy, it helped secure the Shannon LNG project for its Kerry Deepwater Zone which will provide a significant part of Ireland’s projected future gas needs; the Company, working with North Tipperary County Council, became the first state agency and local authority in Ireland to use Sat Nav systems to map visitor attraction, activities and accommodation in the North Tipperary area. This venture has proved so successful that Shannon Development will now roll it out to all Shannon Region counties.”
Speaking about the recent announcement that Co. Kerry had won a major European Award – the European Entrepreneurial Region of the Year Award, designed to reward EU regions for their outstanding entrepreneurial vision, Mr. Brassil said, “Co. Kerry was one of only three regions throughout Europe to receive the Award which was presented in Brussels. Shannon Development, the Institute of Technology Tralee and Kerry County Council, were instrumental in securing this award for the County. This is the first European Award of its kind, and with competition from all over Europe this is a tremendous achievement. It shows that entrepreneurship is alive and well in the Shannon Region.”
Acknowledging that 2009 was a challenging year for the Region’s tourism industry Dr. Cunnane said, “Although figures are not yet available, visitor numbers in the Shannon Region will show a decrease in 2009. Against an extremely difficult global economic background, Shannon Development succeeded in signing 38 major tourism marketing agreements with key travel companies world-wide. These initiatives secured 315,000 visitors, over 600,000 bednights and boosted visitor spend in the Shannon Region by over €47 million.
During the year Shannon Development undertook focused advertising, e-marketing, travel media familiarisation trips and a range of domestic and overseas tourism trade campaigns. For example our tourism marketing team attended 46 national and international trade and consumer tourism events in nine countries to sell the Shannon Region as a tourist destination to over 2.6 million potential visitors.
SUPPORTING TOURISM ENTREPRENEURS
Shannon Development supports tourism entrepreneurs in the Region to develop a range of tourism projects and secure EU grant funding. Between 1989 and 2009, over 200 projects were assisted with grants of €54 million which secured a total investment of over €600 million.
Highlighting key priorities for 2010, Dr. Cunnane said, “In 2010 Shannon Development will continue to build on its network of international tourism contacts in airline vacation companies and with tour operators in all key markets and seek out new business opportunities from national and international tourism markets. In 2010 we will also target the Irish market for similar deals with trade and consumer partners.
We will also focus heavily on developing international and national tourism and sports events for the Region. Sports tourism alone is worth in excess of €60 million annually and we will be exploiting this lucrative sector in 2010. Already this year we have secured three major events for Limerick and Clare - Skyfest, the Sky Ride Etape Hibernia international cycling event, and the Great Limerick Run- which combined have the potential to generate up to €8 million in additional revenue. We will be announcing details of further secured events over the coming months," said Dr. Cunnane.
RENEWED FOCUS ON LIMERICK
“A strong region requires a strong core and Shannon Development’s objective by establishing our new Limerick Division in 2009 to grow the Greater Limerick Area. We are currently undertaking a major drive to develop sports business and tourism for the City. The new Division will focus on key areas including the development of new business opportunities. In addition to highlighting the attractiveness of Limerick as an investment location, the Limerick Development Division will work closely with key partners to develop and support marketing programmes and events aimed at offering diversity and quality in what the city offers to visitors and investors. In this regard, the successful 2009 launch of the Sports Ambassadors Programme in partnership with the Shannon Region Conference and Sports Bureau is expected to yield dividends in terms of greater sports driven tourism in Limerick in 2010 and beyond,” says Dr. Cunnane.
SUPPORTING THE MID WEST TASK FORCE
In early 2009, in the wake of 1,900 job losses at Dell, Mary Coughlan T.D., Tánaiste, and Minister for Enterprise, Trade and Employment, established the Mid West Task Force led by well known businessman Denis Brosnan. Dr. Vincent Cunnane, chief executive, Shannon Development, was appointed chief executive of the Task Force.
Speaking about the work of the Task Force to-date, Dr. Cunnane said, “Presentations from 24 groups representing the major stakeholders and interest groups responsible for economic and social development in the Mid West were received by the Task Force last year. The Task Force completed its Interim Report in July. Among its recommendations were an acceleration of Limerick’s regeneration plans, the establishment of a commission to examine governance of the greater Limerick area, and government funding for the Lynxs Cargo Hub project at Shannon Airport and marketing funds to promote the Airport as the gateway for international traffic to the Midwest and West of Ireland. We look forward to the comprehensive Government response which is due shortly.”
LOOKING AHEAD
Commenting on the current economic landscape and future steps, Dr. Cunnane said, “There are some signs that fragile green shoots of economic spring may be emerging. While this is welcome news, we need to ensure that these delicate shoots are nurtured. This will involve having the right mix of business supports and continuing to get the message into the international marketplace that Ireland is open for business, stocking the shelves, and keeping an eye on emerging business opportunities globally. This is where Shannon Development’s focus will be firmly rooted in the future.”
Photo Caption
Shannon Development Building for the Future. Shannon Development Chief Executive Dr. Vincent Cunnane, with John Brassil Chairman of Shannon Development pictured today (Monday 15th February 2010) in Limerick at the publication of the Company’s 2009 End of Year statement. Among its highlights Shannon Development invested €9.6 million in a range of property solutions for foreign and indigenous companies
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