Kerry Local Economic & Community Plan Kerry at a Glance. A county that honours the past and embraces the future

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1 4 Kerry at a Glance 31

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3 4 Kerry at a Glance 1 For someone considering living, working or investing in Kerry, the county s social, cultural and economic features make it an attractive prospect. From an economic perspective, despite rural counties being disproportionally affected by the downturn, recent statistical evidence is favourable. The county s gross domestic product (GDP) -the combined value of all the goods and services produced within a certain time period - is 5.5 billion. Live-register figures are slowly falling - 11,693 as of November 2015, down from 13,164 as of the last census - and the county boasts an increasingly diverse entrepreneurial base, with indigenous enterprises existing alongside foreign direct investment companies. Other positive developments on the investment and enterprise front include plans for the continued expansion of Kerry Technology Park, proposal to build a national Agri-Tech centre of excellence and the development of key strategic sites. If the LECP s economic actions and policies have an underlying theme, it is to build on traditional sectoral strengths while diversifying the economy. Diverse industries with job-creating potential - such as experiential tourism, diversification in farming and the food and drinks sector - have all been earmarked for development. From a social and communal perspective, voluntary organisations such as the Tidy Towns groups, the PPN (Public Participation Network), and the Joint Policing Committee, ensure the county s inhabitants are actively involved in decision making and community engagement. The county is blessed with a rich cultural heritage, testified by the number of internationally recognised festivals in Kerry Dingle s Other Voices, Listowel s Writers Week and Tralee s Rose of Tralee to name but three. Kerry is becoming an increasingly socially and ethnically diverse county, although some of its citizens can be classified as vulnerable or relatively disadvantaged. For example the live-register figures in certain parts of the county are above national medians. Also 14.8% of the county s inhabitants are over 65, a materially significant 2.2% above the national average; this has both positive and negative social and economic implications. This plan seeks to address the needs of the county s most vulnerable and disadvantaged groups. It also seeks to ensure that the county s inhabitants are supported throughout their lifecycle in order to ensure that Kerry offers an exceptional quality of life offering for everyone. Due to the increasingly aging demographic this plan focuses on actions centred on access and service provision particularly for the elderly so that they are aided in maintaining their independence and supported so they can continue to make a valuable contribution to their communities. 4.1 Demographics Comparatively, Kerry is one of the most sparsely populated counties in the state, and, while the county s population had actually increased by 4.1% at the time of the last census, all other counties had experienced greater increases. Low birth rates, high death rates, high aged dependency and high levels of emigration, all help explain this sluggish rate of population growth. This population stagnancy has also resulted in some worrying demographical shifts, such as Kerry s disproportionally high concentration of people over 49, and its disproportionally low youth population. As well as an increasingly ageing population, population growth, where it has occurred, has been unevenly spread, with increases confined to larger towns and their environs. Moreover, while towns and their environs have experienced population increases, town centres have experienced population decline and consequent social problems. To address this trend, this plan identifies options for urban renewal and the further development of town centres. 1 A copy of the Socio Economic Profile can be found at 33

4 The more rural and peripheral areas of the county have also experienced population decline, and therefore this plan incorporates the recommendations of The Commission for the Economic Development of Rural Areas (CEDRA), proposing actions and policies which address issues around service provision, access and social isolation. 4.2 Labour Market and its Implications Kerry has experienced the economic challenges of the recent downturn for example the county s construction industry, lost 60% of its workforce however statistical data suggest Kerry s labour market is recovering. The percentage of Kerry people on the live-register, which stood at 11,693 as of November 2015, represents a 9% decrease from 2014 figures 2. However, Kerry s economic dependency ratio (EDR) is higher than the state, and there are as high as two dependents for every one working member in some of the more disadvantaged electoral divisions. 42,797 of Kerry inhabitants are in employment (approximately 39,000 are based within the county boundaries 3 ), 14.9% work in retail, which is on par with the state level, 9.4% are employed in manufacturing, which is slightly below the state figure, while traditional industries such as agriculture and tourism account for a substantial portion of the economic activity. However, while tourism is essential for the viability of the Kerry economy, much of the employment is seasonal. The agriculture sector is polarised between larger, more profitable farms (mostly dairy), and the less lucrative livestock-based farms. This plan endeavours to address these difficulties in a variety of ways, including incorporating the goals of Food Harvest 2020 and the implementation of the county Kerry Tourism Strategy. There are also actions and policies devised to promote the manufacturing sector as an attractive career option and a commit- 2 Please see CSO Live Register Figures, appendix 4 3 Commuter Flows, appendix 5 34 ment to increase collaboration and coordination between companies. 4.3 Kerry Enterprise Development Kerry is home to almost 6,000 (5,910) enterprises excluding the public sector and the farming sector. In total these enterprises employ 32,000 people. Employment numbers No of businesses Under 10 5, and over 5 Enterprise Ireland has over 125 client companies employing over 3,500, while there are 12 IDA- Ireland supported companies in Kerry, employing 1,638. The Local Enterprise Office acts as a first point of contact for all enterprise information, advice and support needs of the micro business. Local Development Companies, North, East and West Kerry Development (NEWKD), South Kerry Development Ltd (SKDP) and IRD Duhallow Ltd operate within the county providing enterprise and business supports. Údarás na Gaeltachta encourages investment in the Gaeltacht areas through a range of incentives and supports for new and existing enterprises. Along with many companies acquiring global status, Kerry has been successful in attracting foreign companies; including Liebherr, Astellas, JRI America, Temmler, Beru, XPX Dollinger and Listel, as well as indigenous success stories such as Kerry Group, Fexco and Dairymaster.

5 Promising developments on the enterprise and industry front, include the establishment of the Economic Development Unit within Kerry County Council, the development and expansion of Kerry Technology Park, included in which are plans for an advanced manufacturing centre, and plans to improve broadband connectivity across the county. the depth of the recent recession, tourism start-ups formed a significant part in economic development. In 2011, almost 20% of start-up enterprises in Kerry were in the tourism sector. This LECP aims to promote the economic and social benefits of the retail sector, which employs 14% of Kerry s working population, through the implementation of the retail strategy as outlined in the County Development Plan ( ). Further actions in this LECP seek to enhance the county s main traditional sectors of tourism and agriculture which are discussed in the next section. Figure 3. Employment dependency on tourism by county 4.4 Traditional Sectors and Diversification Tourism is a key driver of economic activity in Kerry; the county generates over 400 million in income from tourists each year. Up to 14,000 people are employed in the tourism business in the county, including an estimated 9,000 in the accommodation and food services sector. At least one in every five jobs and businesses in the county depend on tourism. Almost 1,500 enterprises in Kerry are engaged in the tourism and hospitality sectors, with almost 1,000 in the accommodation and food services sector. This makes Kerry more dependent on tourism than any other county in Ireland; this is reflected in the rate of dependency on tourism in Kerry which had increased by 2.5% during the intercensal period However the business potential of tourism is well proven, when even in Figure 4. Percentage of enterprises by county engaged in tourism (Source: McFeely & Delaney, 2013, Ibec ) Agriculture also accounts for a significant portion of the county s economic activity, employing 5,621 people, or 10.1% of the working population (Census 2011). Despite numerous difficulties, economic polarisation and topographical challenges, Kerry s natural 35

6 features continue to make it an attractive agricultural prospect. The most suitable land for productive farming, dry grassland, is albeit scattered and disproportionally concentrated in certain areas- relatively plentiful, including sizable concentration in the north and east of the county. In addition to an economically viable farming sector the county also boasts successful Multi-National companies who grew from this sector and continue to source their primary produce from Kerry s farms. enhance such experiences through the development of local farmers markets based on models such as Cork s English Market and Limerick s Milk Market. 4.5 Education and Skills Development The educational attainments and achievements of One of the aims of this plan is to heighten the sustainability of the traditional sectors of tourism and agriculture and ensure that they continue to play a significant role in driving Kerry s economy. This plan includes actions centred on diversifying both the tourism and agriculture sectors through further expansion of Kerry s local food economy. A successful food economy due to the move from low value, high volume international commodity markets to local food-processing for local consumption has the potential to revitalise the rural economy by retaining value in the locality and giving local food producers and farmers more control. Dr. David Meredith (Teagasc) in his research highlighted the local food economy in Dingle as a prime example for emulation 4. Dingle s local food economy model which sees 45 local food businesses actively engage in production and visitor centred food experiences sets a basis for some of the actions set out in this plan that seek to broaden the traditional remit of agriculture and tourism by introducing more diverse activities and enterprises. Such actions include an increase in artisan production and specialist primary production. The expansion of the local food economy will add considerably to the tourist s experience and help form an authentic visitor experience. Local Farmers Markets illustrate how visitors can engage with a truly authentic local experience which is centred on the local food economy. This LECP along with the South West Action Plan for Jobs (SWRAPJ) seeks to 4 Meredith, David, Agriculture, Focus on Agriculture in County Kerry, Kerry s inhabitants have increased dramatically in recent decades a significant 26.4% of Kerry s population over 15 now have a third level qualification. Teacher training and nursing and caring being the most popular subject choices for Kerry third-level students, accounting for 13% and 8.6% of the quotient respectively. With regard to business and industry-orientated subjects, engineering and computer science remain popular among Kerry school-leavers, with percentages either on par with, or exceeding, the state level, although business-orientated subjects, such as marketing and commerce, are marginally below state levels. One of the key concerns identified in public consultation was the discrepancies between skills supply and

7 demands in certain areas, a problem this plan seeks to mitigate through the establishment of a collaborative skills strategy for the county. The aim of the skills strategy will be to match current and future skills demands by connecting industry, higher education and further education institutes. The skills strategy will be an example of a co-ordinated approach to education, with local statutory bodies, educational institutes and employers collaborating closely, an approach championed by two national strategic documents, the Further Education and Training Strategy and the SWRAPJ. The SWOT analysis is divided into three interrelated themes; economic, infrastructure and quality of life 4.6 The Gaeltacht The promotion and development of the Gaeltacht as a living language community in Co. Kerry is an important objective of this plan. The Gaeltacht communities are important and unique not alone from a cultural viewpoint but also from social and economic perspectives. Key actions are those relating to the preservation of the linguistic and cultural heritage of the Gaeltacht in addition to advancing the economic and community development of the areas. Due to the geographic locations of these communities there are challenges to strengthening and supporting the social infrastructure for people of all ages. 4.7 Identified Strengths, Weaknesses, Opportunities and Threats (SWOT) The research findings along with the extensive public consultation process helped in identifying Kerry s strengths, weaknesses, opportunities and threats. A SWOT analysis was undertaken to gain a better understanding of some of the challenges and opportunities in the county and this process was of great importance in establishing the actions to be included in this LECP. 37

8 Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis Strengths Economic 1. Strong entrepreneurial spirit and impressive indigenous track record (e.g. Fexco/Kerry Group/ Dairymaster) resulting in strong ambassadors for the county. 2. Strong internationally recognisable Kerry brand i.e. Kerry, Killarney, Ring of Kerry, Dingle, Rose of Tralee, Listowel Writers Week. 3. Strong presence of global companies and the longevity of FDI companies. 4. Strong tradition of educational attainment. 5. Reintroduction of Regional Aid. 6. Strong tourism & arts sector. 7. Unique selling points for the county, Islands, Skelligs, Blaskets, McGillicuddy Reeks, Lakes of Killarney. 8. The Wild Atlantic Way in Kerry a 450km scenic coastal drive 9. Lucrative dairying farming systems to be found in the north and east of the county. Infrastructure 10. Kerry Technology Park, a world class business environment of seamless integration of education and enterprise. 11. Kerry is home to the Institute of Technology Tralee and within 100kms of four other higher level institutes, University of Limerick, Limerick Institute of Technology, University College Cork and Cork Institute of Technology. All having an impressive international reputation. 12. Kerry International Airport allows business executives and tourists to travel to Dublin, the UK and other European destinations. 13. Key strategic development sites. 14. Fenit, a deep water port is an important commercial asset providing a strategic transport link for the import and export of goods. 15. Extensive roads network allowing ease of access to employment and leisure activities. 16. High quality tourist infrastructure, extensive quality tourist accommodation, restaurants, pubs and entertainment venues. Quality of Life 17. Strong quality of life offering in Kerry, giving the county a strong appeal in terms of attracting people to live and work in the county. 18. Presence of strong inter-agency and community led work practices. 19. Strong community based organisations working to improve quality of life in the county; i.e. Tidy Towns, Development and Sporting Organisations. 20. Abundance of natural assets and a rich, clean, green environment. 21. Diverse opportunities for leisure activities throughout the county, hill walking, cycling, top quality beaches, cultural centres 38

9 Weaknesses Economic 1. Imbalanced growth within the county. 2. Limited track record in emerging sectors (IT and high tech industries). 3. Skills availability to support business needs (ICT skills e.t.c) 4. Gap between the county and the State in terms of third level attainment. 5. High level of job losses in the inter-censal period High dependency on traditional sectors such as wholesale, retail, tourism and agriculture. 7. Predominance of low input/low output farming with two-thirds of farms in Kerry being dry stock beef or sheep farming. Infrastructure 8. Limited clean property solutions to support new manufacturing projects. 9. Connectivity to main urban locations and main international airports still needs additional strengthening (N21 and N22)- Adare & Macroom/ Ballyvourney. 10. Need to strengthen mobile and broadband connectivity in the county. 11. Lack of integrated transport network. 12. Need for more affordable houses in suitable locations. Quality of Life 13. High aged dependency and economic dependency compared to the State and the South-West. 14. The vacancy rate in Kerry is significantly higher than the State vacancy rate; such high vacancy rates hinder community viability. 15. Societal changes have led to social isolation particularly in rural areas. 39

10 Opportunities Economic 1. Promotion of the clean and green image associated with the county along with the development of a Brand Kerry to promote the message that Kerry is a place to work, invest, live and visit. 2. Uniqueness of the county attractiveness for green industry, tourism, food. 3. Opportunity to build on and join up traditional sectors and add value, i.e. local food economy, dairying and tourism. 4. Diversification and further development of tourism, for example exploring options such as eco-tourism, adventure tourism & activities, and experiential tourism; including arts & culture tourism. 5. Kerry s natural resources which foster increased employment and enterprise opportunities in the areas of: - marine, energy, fishing, forestry, food, outdoor, leisure related activities etc. 6. High levels of progression to third level among Kerry students. 7. Identification and matching of skills to current and future labour market needs. 8. Fostering links through networking with Diaspora in an effort to entice people to relocate to Kerry. (Promoting the quality of life offering in Kerry). 9. Promote the supportive business environment in the county and existing micro, SME and FDI businesses. 10. Reinstatement of Regional Aid for County Kerry. Infrastructure 11. Strong education sector at primary and secondary level in the county, with a growing 3rd level institute. 12. Potential of university status third level institute in County Kerry. 13. Provision of property solutions (manufacturing/services) to support FDI opportunities - advanced technology building. 14. Development of key strategic sites in the county. 15. Strong port access at Fenit, Foynes, coupled with numerous fishing ports. 16. The development of strategic regional transport infrastructure, public transport services and broadband to improve connections with County Kerry, and in particular the Tralee-Killarney Hub Quality of Life 17. The development of support service enterprises for identified groups, e.g. older people. 18. Improved retention rates of Leaving Certificate students with almost 1,800 students in the county sitting the Leaving Certificate each year. 19. Creation of strong ambassadors for the county through schools projects. 20. Promoting the Gaeltacht region on a global scale as an attractive area for linguistic scholars. 21. Promotion of Kerry s rich qualify of life. 22. Alternative lifestyle avoiding the traffic issues of large urban areas and exorbitant house prices. 23. To engage with the community on local developments, leading to ownership, enhanced civic pride; a key factor in good place- making. 24. To support the role of community based organisations in the county that already contribute to social and economic development including the strong community infrastructure. 40

11 Threats Economic 1. The lowest population growth in the Country compounded by trends of suburbanisation and expanding commuter zones and on-going rural decline. 2. Economic pull factors of areas outside the county - leads to high out-migration and resulting in the lowering of the availability of certain skills in the employment market. 3. Lack of scalability of certain sectors e.g. ICT. 4. Changing nature of FDI shift to services activities/urban centres. 5. The dairy industry is susceptible to global trends; volatile pricing in the dairy industry can lead to major losses. Infrastructure 6. Lack of suitable manufacturing properties. 7. High levels of commercial and retail vacancies in the county. 8. Lack of clarity on the future of the potential LNG project. 9. Challenging broadband and mobile connectivity especially outside urban areas. Quality of Life 10. High aged dependency has social and economic implications. 11. The number of essential services supporting vulnerable groups that are delivered through voluntary effort. (Services for older people, vulnerable young people e.t.c). 12. Decline in language and tradition in Gaeltacht regions and throughout the county. 13. Lack of integration of migrant and new communities due to language and culture barriers. 14. Pressures to have adequate types of housing to support the aging population. There is a need for adaptation of housing to suit requirements. 41

12 4.7.1 SWOT Assessment Primary income plays a major role in the size and vitality of an economy. The more people employed and the higher the wages, the higher a county s disposable income. Excluding farming enterprises, and the public sector, Kerry has almost 6,000 active enterprises which need to be supported to reach full potential as these are the reference sellers to attract both domestic and overseas investors, entrepreneurs and visitors. As outlined previously Kerry has very strong tourism, retail and agriculture sectors. There is an opportunity to build on these sectors to create added value. For a strong and resilient economy, there is a need to build on Kerry s strengths, value proposition and opportunities for growth. Infrastructure, including air, road, rail, ports, high speed broadband, energy, property solutions, and educational facilities are essential growth enablers. Kerry has made significant progress, however to sustainably grow, Kerry needs; motorway connectivity, continuous developments in renewable energy, targeted developments in broadband, improved mobile communication, development of strategic sites and measures taken to allow the airport to continue to develop. When compared to the state, Kerry experiences a drop in population in the age cohort. People leaving the county for study and work are a contributory factor. The quality of life offering in Kerry needs to be promoted as a key factor in a why Kerry type campaign to attract inward migration of those of working age population particularly the nester age group, i.e. people with young families. While the Strengths and Opportunities may seem focused in the economic and infrastructure fields, balanced growth and investment, and the promotion and protection of Kerry s quality of life is essential in supporting a whole of county sustainable development and growth approach. Essentially the county s Strengths and Opportunities are underpinned by the county s natural environment and resources. The LECP recognises the importance of protecting these resources and managing them in a sustainable manner. 42