Tourism ‘could be hit by high prices’

WHILE tourism is heading for a record 2004 high, prices could undermine the sector long-term, warn tourism chiefs.

Despite concerns, the sector is hoping to generate a 4% increase on the €6.2 million who visited our shores last year.

Tourism Ireland chief executive Paul O’Toole said they will only come if they get good value.

The warning came at the start of a two-day selling of Ireland marathon in the RDS, Dublin, yesterday.

Over the period, tourism operators will meet 300 travel companies from 31 different countries in a bid to attract more tourists to Ireland and boost holiday revenues. However, the authorities know they have a fight on their hands. Concerns about Ireland becoming one of the dearest places on the planet have to be addressed in a variety of ways.

“There’s no complacency whatsoever, the feeling is we need to work hard,” said Mr O’Toole.

“The targets set are achievable if we work hard.”

Tourism was the third-largest arm of the economy in 2003, accounting for €5.1 billion in revenues.

Despite the cost issue, Tourism Ireland, which markets Ireland abroad, and Fáilte Ireland said tourists found a high level of satisfaction but complained about the cost of food and drink. This two-day RDS event is expected to generate more than €800 million as over 540 Irish operators hit the ground running yesterday morning to promote Irish package trips for next year’s holiday market.

While confident they can deliver on the 4% increase on last year’s visitors figures, they face fresh competition.

The expansion of the EU means more people will travel to Eastern Europe for cheaper holidays.

“There are a new set of competitors catching up fast. They are developing their products in the tourism industry to offer real competitiveness,” said Mr O’Toole.

But he was confident of our ability to adapt. On the thorny question of dearer prices, he said “if we are a little bit more expensive a destination” he believes the quality holiday package offered makes it worthwhile coming here.

New markets have been targeted as tour operators from Korea, Poland and India attended the trade fair for the first time.

The tourism chiefs said the numbers travelling from the anchor markets of US, Britain, France and Germany are strong.

“At the beginning of the year we were quite concerned with the dollar and the euro exchange rate; it meant Americans find it more expensive for a trip here,” he said.

That market is now looking up through a combination of factors, including low-price air fares.