Tourists spent €4.2bn last year

RECORD numbers of people visited here last year. Fáilte Ireland estimates the figure at 6.4 million in 2004, generating €4.2 billion in foreign exchange earnings.

With domestic trips up 10%, total revenues from tourism came in at €5.2 billion.

The year 2004 exceeded the previous record of 6.18m overseas visitors in 2000 by 2.6%.

In 2001/2, the figures fell below six million as poor economic conditions and the 9/11 terror attacks affected numbers.

The pattern of visits is changing with more short-term city trips, especially to Dublin, becoming a major feature.

Pressure is being felt in the west, in particular, where the sector has failed to boost its share of rising income.

Tourism fundamentals remain strong, said Fáilte Ireland chief executive Shaun Quinn. “We are likely to achieve our 10 million in tourists numbers by 2012, but the income figure is proving harder to achieve due to margin erosion”, he said.

Cost of labour is a critical in an industry that is labour intensive, he said.

Employment in the sector remained steady at 230,000 last year, with four out of five enterprises reporting unchanged strafing levels.

The report called for a radical overhaul of our B&B product and for greater cost efficiency across the industry if profits targets are to be achieved.

The future outlook for regional growth was clouded, Fáilte Ireland chairman Gillian Bowler. “It will only be sustained if we can provide competitive direct access to Ireland”, she said.

“Product improvement and better roads are also a crucial part of the equation for the west to sustain a healthy tourism environment”, she said.

Ryanair’s decision to operate out of Shannon was a major positive for the west, she said. “For Ryanair to be successful in Shannon was absolutely important for us in the future,” she said.

She expected to see the benefits of the diversified services to and form Shannon to yield positive results from 2006 once the routes were fully established.

The level of complaints about prices has risen dramatically, figures released by Fáilte Ireland for the year reveal. They show 35% of foreign tourists said the cost of holidaying here was too high. That figure has shown a dramatic increase since 2000 when just 11% said prices were an issue for them.

North American visitor numbers were up by 7%, while European markets, like Italy and Spain, rose by 5% and 18% respectively.

Traditional markets, such as Britain - our biggest - France and Germany were less buoyant with British visitors down by 1% to 3.5 million. But there was continued growth in the number of Irish people holidaying at home, with the figure up 6%.

Current indicators suggest 2005 will be a good year for tourism, with a projected 5% growth in both domestic holidays and visitors form overseas.

Ms Bowler said a second terminal was a priority at Dublin airport to provide cheaper landing facilities.

The decision on the national conference centre was a step in the right direction. By 2007, earnings from business tourism could hit €500m, she said.