Tertiary Economic Activities (Leaving Cert Geography): Revision Notes

Tertiary Economic Activities

The Greater Dublin Area (GDA) stands as Ireland's most significant service sector hub, with an impressive 80% of its workforce employed in tertiary industries. This concentration of service employment far exceeds any other region in the country, making the GDA the economic powerhouse of Ireland. The region's tertiary sector encompasses three key areas that drive economic growth: transport networks, tourism, and financial services.

Transport infrastructure

Strategic location and connectivity

The GDA serves as the central hub for Ireland's entire transport network, functioning as the focal point where all major road and rail connections converge. This strategic position links the capital region to every other significant urban centre across the country. All of Ireland's motorways (M1 through M11) connect directly to the GDA, whilst the M50 motorway forms a vital semicircular route around Dublin city, providing access to major national routes.

Infrastructure development challenges

Prior to the early 2000s, Dublin's transport infrastructure was significantly underdeveloped and poorly designed for modern needs. The economic boom period, known as the Celtic Tiger era, led to a dramatic surge in car ownership and usage throughout the region. However, the existing road network was not equipped to handle such large volumes of traffic, resulting in severe congestion problems.

Government investment programme

Recognising the urgent need for improvement, the Government implemented substantial investment in modern public transport systems through the National Development Plan (NDP). These improvements included several major projects:

Rail transport enhancements:

• The DART commuter rail network received significant expansion with upgraded trains and carriages
• Intercity train services were modernised and improved
• Two new Luas tram lines were constructed to connect Dublin's suburbs directly to the city centre

Road infrastructure upgrades:

• The M50 motorway was expanded to become a six-lane highway with an automated toll bridge to improve traffic flow
• The Port Tunnel was completed and connected to the M50, allowing heavy goods vehicles (HGVs) to bypass the city centre entirely

Public transport innovations:

• Quality Bus Corridors (QBCs) were introduced across the city, significantly reducing travel times for public transport users
• Dublin Bus now carries approximately 120 million passengers annually, though numbers have declined somewhat due to the increasing popularity of the Luas system
• The city's 12,000 taxis can also utilise the QBCs, leading to faster journey times and reduced fares
• A highly successful bike sharing scheme was developed, with each bicycle being used an average of 10 times per day across over 100 stations throughout the city

Current transport challenges

Despite these significant improvements, transport challenges persist in the GDA. Travel speeds through Dublin continued to decline, reaching just 8 km/h by 2015. This ongoing congestion stems from the fact that 90% of commercial transport in Ireland still relies on road networks, whilst increasing rural-urban migration continues to boost the number of commuter vehicles entering and leaving the city daily.

Aviation connectivity

Dublin Airport serves as a crucial gateway for the region, handling over 21 million passengers annually and operating more than 160 routes with 57 airlines. This extensive connectivity reinforces the GDA's position as Ireland's primary entry point for international visitors and business travellers.

Tourism sector

Regional tourism dominance

The GDA attracts more tourists than any other region in Ireland, benefiting significantly from its role as the main entry point into the country. An overwhelming 90% of all scheduled flights land at Dublin Airport, with the airport handling 21 million passengers in 2015 alone, generating €7.6 billion in revenue for the regional economy.

Year-round tourism advantage

Unlike western regions of Ireland that rely heavily on seasonal tourism, the GDA enjoys year-round visitor numbers. Over 6 million domestic tourists visit the region annually, meaning it does not depend solely on overseas visitors for economic sustainability. This diverse tourism base provides greater stability for the industry.

Tourism sector recovery

The tourism industry in the GDA experienced significant challenges during the global recession that began in 2008. As families across the European Union faced reduced incomes, tourists sought better value destinations for their holidays. Since Ireland ranks as the fifth most expensive EU member state, overseas tourist numbers declined sharply during this period. However, as economic conditions improved, tourist numbers began increasing once again.

Diverse tourist attractions

The GDA's tourism success stems from its wide range of attractions catering to different visitor interests:

Sport and recreation tourism:

• Kildare attracts visitors for horse racing at the renowned Curragh racecourse
• The K Club golf course gained international recognition by hosting the Ryder Cup in 2006

Historical and archaeological tourism:

• Newgrange in County Meath draws visitors interested in ancient Irish history and archaeology, offering insights into Ireland's prehistoric past

Natural beauty tourism:

• County Wicklow attracts nature enthusiasts with its mountainous and glaciated landscape
• Popular destinations include Powerscourt and Glendalough, which showcase Ireland's natural heritage

Urban tourism:

• Dublin city serves as the perfect destination for city breaks, offering numerous attractions including the Guinness Brewery (over 1 million visitors annually), Dublin Zoo (950,000 visitors), Dublin Castle (170,000 visitors), and the National Gallery (590,000 visitors)

Financial services

International Financial Services Centre establishment

The International Financial Services Centre (IFSC) is situated in Dublin's North Inner City area, built on former docklands. This development serves as the headquarters for Ireland's major banking institutions and specialises in international financial trade. The IFSC was established in 1987 with the specific goal of boosting investment and employment within the Irish economy.

Tax incentives and attraction strategies

To encourage international companies to establish operations in Ireland, the Government created a special corporation tax rate of just 10% for businesses setting up within the IFSC. Although this preferential rate ended in 2002, it had already succeeded in attracting numerous multinational companies to locate their operations in Dublin.

Economic impact and employment

The IFSC has proven remarkably successful in addressing the emigration and unemployment challenges that Ireland faced during the 1980s. Many graduates from colleges and universities throughout the GDA have found employment opportunities with the international companies operating within the IFSC.

Currently, the IFSC employs over 35,000 people and generates substantial tax revenue for the Irish Government. The centre contributes approximately €1 billion annually in corporation tax, plus an additional €1 billion through taxes on employees' wages, making it a crucial contributor to Ireland's public finances.

International company presence

The IFSC has attracted an impressive array of global financial institutions. Some 450 international companies maintain offices within the centre, including 25 of the world's top-50 banks. Additionally, half of the world's top-20 insurance companies have established operations there, cementing Dublin's position as a major international financial hub.