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Poor start to season for regional hotels

By Joe Dermody - Monday, July 16, 2012

Regional hotels and guesthouses have had a disappointing start to the summer season, according to the latest Irish Hotels Federation (IHF) quarterly barometer.

Overall, 55% of hoteliers saw a lift in trade.

However, the gains made by urban hotels in Dublin, Cork and Galway are masking a poorer performance across the rest of the country.

Seasonal hotels and resorts, notably along the west coast, are lagging behind expectations.

IHF chief executive Tim Fenn said: "Performance has been patchy at best and we’re now expecting business levels to be flat in many parts of the country, which is severely disappointing given the very low visitor base we’re working off, at 30% less than the peak in 2007."

When asked about the outlook for their business over the next 12 months, 50% of hoteliers indicated that they are optimistic, compared to 64% with an optimistic outlook this time last year.

Results of the survey showed a positive response to the Government’s decision to retain the 9% tourism VAT rate, which is providing a lifeline for many businesses in the sector.

The measure will continue to have a positive impact on business into 2013, according to 93% of hoteliers, while 50% say they are likely to take on additional staff over the next year as a direct result.

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