Sterling drop adds €365 to the cost of an Irish holiday

STERLING weakness has added almost €365 to the cost of an Irish holiday, which could result in a 10% plunge in visits by British travellers.

Ireland could be one of the big losers in Europe this year as it is not being marketed as a cheap location in Britain.

This news comes as a study finds that the fall in value of the pound means people holidaying in Europe must fork out an average of £321 (€365) extra per household to match their 2007 spending levels.

Director of markets with Tourism Ireland Simon Gregory said Ireland is not a cheap destination but prices are decreasing as firms compete for business.

“We are aware of the cost issues in Britain and it is a tough market for us but we are fighting for our share of it,” he said.

“There is value to be found at restaurants and in getting to Ireland and we are putting an emphasis on value and quality.”

Tourism Ireland is spending money on advertising in national newspapers in Britain to encourage tourists to visit Ireland.

“We have seen a huge response from the industry and everybody is fighting harder meaning there’s great value out there,” he added.

Mr Gregory said the body, which markets Ireland abroad expects visitor numbers from Britain to be down between 5-10% this year.

“We have to be realistic about it,” he said.

According to InsureandGo, the extra spending figure is based on what holidaymakers are having to pay to match the same level of accommodation, food and entertainment they enjoyed on eurozone holidays two years ago.

Since the end of July 2007, the pound has fallen 27.7% in value against the euro meaning that British households will need to spend an extra £8.15 billion (€9.2bn) this year.

InsureandGo’s Perry Wilson said the travel industry is being hit hard by the slump but it means there are good deals for holidaymakers.