Dismal forecast for tourism in 2005

THE tourism industry is expecting a bleak 2005 after a weak 2004 to date, the Fáilte Ireland Tourism Barometer survey has found.

The Tourism Barometer covers 888 tourism establishments throughout the State.

The survey found that while overseas visitor numbers for the first seven months of 2004 are running 5% ahead of last year, most regions and sectors have had a worse tourist season than in 2003.

The report indicates that, up to June of this year, there was evidence from the Tourism Barometer that the eastern part of the country had experienced growth.

“Any gains made in the first half of the year are no longer evident. Even Dublin, for many years the engine of growth in the tourism economy, has, on balance, reported a softening in demand,” the report found.

The hardest hit has been the B&B and guesthouse sector, with more than 73% of respondents reporting they had fewer bed nights this year than last.

“In June, hotels were reporting business to be up on last year. Now they have joined the ranks of other accommodation providers in claiming their overall volume on bed nights is down on 2003,” the survey’s authors state.

Just 31% of hotels are reporting improved performances on 2003, 22% say business levels are more or less unchanged while 45% say business has been worse.

“The business downturn has had an adverse impact on profitability of all paid serviced accommodation.

“Within the hotel sector, the proportion of establishments reporting a disimprovement in average room yield outnumber those who cite an improvement by a factor of almost two to one,” they add.

Looking forward, the report said that, given their experiences for the season to date, it is not surprising that, on balance, all accommodation establishments anticipate business will be down during the remaining months of the year compared to last year.

“B&Bs and guesthouses, in particular, display the highest degree of pessimism,” the report said.

Yesterday, more than 100 international Corporate and Incentive Travel industry buyers met with Irish tourism businesses in a series of one-to-one appointments at the Business Tourism Workshop at the Burlington Hotel.

This high-yield market currently attracts almost 150,000 visitors to Ireland and is worth over €250 million to the Irish economy.

Commenting on the workshop, Fáilte Ireland Chief Executive Shaun Quinn said: “The Incentive Travel market has had its difficulties over the past few years but is now recovering and its potential for growth is substantial. Fáilte Ireland is very focused on the sector and this weekend’s programme of activities is about capturing a larger slice of the pie for Ireland.”