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Visitors at the Cliffs of Moher in County Clare Eamonn Farrell/Photocall Ireland

Irish tourism "in fragile state"

The chief executive of the Irish Hotel Federation has said that hotels and guesthouses are “struggling to cope” with a two-speed recovery in the sector.

IRISH TOURISM REMAINS in a “fragile state”, the chief executive of the Irish Hotels Federation has said.

Tim Fenn was speaking at the Irish Hotels Federation (IHF)’s 74th annual conference yesterday, where he noted that hotels and guesthouses around the country are “struggling to cope” with a “two-speed recovery” in the sector.

He said that while there were improvements in occupancy levels across Dublin, the West and South West, this “masked” disappointing figures throughout the rest of the country.

Fenn said that a 7 per cent increase in visitor numbers to 6.26 million last year shows a recovery from the impact of the volcanic ash cloud in 2010. But he said that attracting more British visitors is high on the agenda this year, as the market has experienced a cumulative drop of 26 per cent in visitors since 2007.

The fall-off in British visitors from 3.8 million in 2007 to 2.8 million last year is a stark reminder of the amount of ground lost and the urgent need to reinvigorate our most important tourism market.
A 3 per cent increase in British visitors last year is some level of progress but we need innovation and creative thinking from our tourism bodies to encourage the level of British visitors to return.

Fenn explained:

When people think of holidaying in Ireland, the image should be of a fun and vibrant destination – blessed with a wealth of scenic attractions, steeped in history and culture and offering a warm and friendly welcome. This is the challenge we face.

There was an increase in total tourism revenues to €4.77 billion in 2011 (up from €4.6 billion in 2010), but the sector is still recovering from the 27 per cent reduction in overseas revenue since 2007, said Fenn.

Revenues were made up of €3.56 billion from overseas visitors and €1.21 billion from the domestic market. The high dependence on the home market continued in 2011, with 70 per cent of hotel bed nights now coming from island of Ireland. Despite a 1 per cent recovery in hotel room occupancy to 57 per cent in 2011, most hotels and guesthouses are still witnessing severe pressure on room rates.

Only three regions experienced increased room occupancy rates to 2011:

  • Dublin 64 per cent (up 2 per cent), the South West: 63 per cent (up 5 per cent) and the West: 60 per cent (up 4 per cent).
  • In the Shannon region, occupancy rates remained unchanged for the third consecutive year at 51 per cent.
  • Reduced room occupancy was seen in the East & Midlands: 41 per cent (down 1 per cent); South East: 56 per cent (down 1 per cent) and North West: 47 per cent (down 3 per cent).

Said Fenn:

Hotels and guesthouses are struggling to deal with reduced revenues that are effectively the lowest room rates in Europe. Our members are offering prices that give very little return but, in the current climate, it’s the only option to stay in business.

Tourism accounts for almost 4 per cent of Ireland’s gross national product, bringing in €3.56 billion in foreign exchange earnings last year. There are 180,000 people employed in tourism in Ireland.

Read: Number of overseas visitors to Ireland up slightly>

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17 Comments
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    Mute Mike Reid
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    Mar 5th 2012, 10:35 AM

    Who wants to visit a country where people are miserable, complain all the time and everything is so fucking expensive?

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    Mute Colin Toner
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    Mar 5th 2012, 10:32 AM

    “…Hotels and guesthouses are struggling to deal with reduced revenues that are effectively the lowest room rates in Europe. Our members are offering prices that give very little return but, in the current climate, it’s the only option to stay in business…”

    I’m sorry but I would rather have a small piece of pie than have no pie at all. Hoteliers and Guest-houses need to remember that they operate on reduced rates on what was the highest room rates in Europe. If they are able to keep their doors open and make a wage ( wage not profit ) then they are doing great.

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    Mute Darren Parslow
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    Mar 5th 2012, 10:24 AM

    Well done to Leo yet again.

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    Mute Kevin Corry
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    Mar 5th 2012, 11:29 AM

    I thought the Queen was sorting all this out!

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    Mute Rob
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    Mar 5th 2012, 11:24 AM

    I’m not a huge believer that we’re the cheapest rates in Europe!

    It seems in Dublin hotels are hugely competitive but around the country less so. which is completely at odds with what tourists expect and look for – where they’d spend a couple of days in Dublin and then maybe a week around the country – so how do you explain to them that it costs more to stay in Kinsale than in Dublin city??

    hotel rates being only 1 issue – cost of a pint is a huge benchmark also for British tourists!

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    Mute P Wurple
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    Mar 5th 2012, 12:11 PM

    Kinsale is a lot nicer than smelly old Dublin. :)

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    Mute John Cleary
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    Mar 5th 2012, 1:36 PM

    Stayed in killarney last weekend in a hotel described as 4 star on reviews I studied beforehand.
    Not a chance in hell this place was 4 star. Overpriced and charmless, the most significant thing I noticed was a large brass plate on the wall inside the foyer, extolling the virtue of the architect(!) and the builder.
    Says it all, really.

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    Mute P Wurple
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    Mar 5th 2012, 1:52 PM

    Killarney is well known for having a pile of slapped up hotels. fyi though, star grades are not given for charm or value, they are just for facilities. I think for 4 star you need all your rooms to be en-suite. There has to be a restaurant onsite, a dedicated reception area and a cooked option at breakfast. Things like that.

    5 star then needs more facilities, like a spa for example. So a hotel can have all those things, and retain its star, even though it is a soulless place to stay.

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    Mute Denis Walsh
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    Mar 5th 2012, 10:28 AM

    As most hotels are now owned by NAMA then they must be struggling as well.

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    Mute Martin Jordan
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    Mar 5th 2012, 1:07 PM

    Kinsale must be THE most overrated town in history.

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    Mute John A Murphy
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    Mar 5th 2012, 10:39 AM

    I believe the amount of people using hostels has increased a lot so maybe people are just goin for cheap and basic.
    The drop in Hotel occupancy doesnt necessarily mean the same amount of tourists are not coming.

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    Mute Robbie Kelly
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    Mar 5th 2012, 2:14 PM

    Well said Mike, up until 6 months ago I worked for 8 years as a coach driver bringing tourists on extended vacations around Ireland, I’ve stayed in hotels, guesthouses and b&b’s in every county on the island visited countless restaurants, attractions blah blah blah… you get the idea.
    Anyhow the problem I saw was that in Ireland it is her people that’s the main selling point but prior to 2008 nobody in the services industry was Irish (no offence to migrant workers they are good workers but they are not the product on sale here) and the level of English spoken was very poor, it wasn’t a good situation when a tourist arrived in Ireland and after a couple of days they had checked into the hotel been in a couple of restaurant’s maybe a pub or two and had been to a couple of visitor centres and had not interacted with one Irish person!
    Since 2008 a lot of Irish have taken those jobs again but work conditions in the service industry are crap and the Irish workers doing those jobs ain’t happy so now Mr and Mrs Tourist are been given the ‘cead mile failte’ with a sour puss and attitude which leaves a less than worthwhile impression!
    Now before I’m shot to pieces here just a couple of points
    1 yes there is more to Ireland than its people history, culture, scenery etc. but lots of countries can do those things in abundance too (and they have the weather) it’s our people that’s sets us apart
    2 not every employer in the service industry treats their staff like crap but in my humble opinion the good ones are very much the minority
    3 not every overseas worker has bad English some are very good and fair play to them for doing the crappy jobs when we wouldn’t
    4 not every Irish worker is a grump in fact I’d say that if it wasn’t for our people often smiling though the shite near the end of another 14 hour day that tourism would’ve been finished long ago
    5 margins are tight and tourism is seasonal so high prices and low wages will continue

    We need to invest in the people who make Ireland a quality place to visit, find ways to extend the tourist season make tourism and the service industry a real and worthwhile career choice and put a genuine smile on the faces of the people who deliver this product!

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    Mute Peter Carroll
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    Mar 5th 2012, 11:29 AM

    Perhaps it as to do with the costs to the tourist. In 2007 a British tourist could buy €1.00 for just £0.68. today that same euro will cost him £0.84. So the cost of a room, and everything else that a tourist pays for, in 2007 wil have had to have fallen by 24% today to represent the same value.

    The US$ has only marginally changed in the same period – hence a greater reduction in British visitors than in American or European visitors.

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    Mute Jon S W Rainey
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    Mar 5th 2012, 2:01 PM

    Hotels are competitively priced now, compared to Celtic Tiger days. Problem is, price of a lunch, dinner, few pints or theatre tickets is still excessive – not to mention taxis, bus/rail or car hire. 3 days in Galway (2 nights stay) last year cost us a family of 4 €1000 in hotel, food, transport, spending money. We also did a trip to Oslo later in year and for flights, 3 nights hotel (B&B 1 eve meal), taxis and spending money was less than €900. We had 4 theatre tickets to see an show and few other attractions. We’d be reluctant to holiday at home again, just feel its better value and better experience abroad :-/

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    Mute Paddy The Penguin
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    Mar 5th 2012, 11:19 PM

    How can we promote ourselves as a tourist destination and promote our culture, music, art, dance, language etc etc when the Irish ourselves mock and ridicule it.

    I am shocked and disgusted at continuously hearing people my own age (20′s) and younger scoff at our heritage and music, I’m sick of them say “diddly fucking do shit”!

    We should be proud of our great music, culture and art yet it seems to be dying off more and more!

    More needs to be done to promote the wondrous fantastic things that this island and it’s people have to offer and have already offered throughout the decades to the Irish people ourselves as well as foreign tourists!

    It breaks my heart to see the increasing amount of british slang being used by the younger generation. To hear them say Ireland is a shit hole, to see them support the English football team and mock our own.

    Most of them don’t really know what they are talking about they haven’t traveled or lived else where but still where is our patriotism!

    Sure Ireland is in a bad way and there is a lot of people feeling the pinch and out of work and under financial pressure but it’s time to stop bitching, moaning, and begrudging, there is a lot worse places in the world we are very lucky to call this land our home!

    So stop bitching about politicians and bankers if u don’t like it dont just whine and say Ireland is shit im leaving get off ur arse and do something about it!

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    Mute Robbie Kelly
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    Mar 5th 2012, 12:55 PM

    When the tide is out Kinsale smells far worse than Dublin, but it’s not that often only twice every day :-)

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    Mute Pádraig McCann
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    Mar 5th 2012, 7:59 PM

    We need a strong tourism sector as it is one of our ways out of this recession. We also need to take more staycations

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