Room rates to plunge in 2009

HOTEL prices will plunge this year and are already down about 15% compared with 2008. Occupancy last year was 58%, the lowest level since 1994.

Developers took advantage of attractive tax breaks over the last decade when there was a surge in new builds.

Irish Hotels Federation chief executive John Power, however, does not think there are too many hotels in Ireland.

“If we didn’t have the downturn in the economy that we have at the moment, the answer to that is no. “But we have the downturn in the economy and you could easily ask do we have too many shops, too many boutiques, have we too many restaurants in the country. It all depends on the level of economic activity.”

Irish Hotels Federation president Mathew Ryan said the cost of holidaying at home has fallen substantially.

“While Ireland’s brand building campaigns have been tremendously effective in the past, the priority now must be to entice people to holiday here by clearly spelling out the fantastic offers available in terms of accommodation and travel.

“Very low prices are being passed directly on to visitors, and this must be reflected across all marketing activities.”

Meanwhile, online bookings grew 11% last year with domestic tourists making six out of 10 hotel bookings online, according to tourism firm Gulliver Ireland.

Gulliver managing director, Dr Stewart Stephens said: “Value is everything at present and Irish tourism has to fight to overturn its rip-off image. Hotels are doing all they can by offering tremendous value and a superb product.”

Domestic tourists accounted for more than half of all hotel bookings last year. The average online price per night per person sharing was €59.42.