Hotel industry hopeful as Irish look to stay home this summer

IT has been a tough few years for the Irish hotel industry.

Not only are there too many hotel rooms, but people have less money to splash out on holidays and mini-breaks.

However, the future is looking a little brighter with many hotels saying they are positive about the summer. Many are reporting increased bookings, especially from the domestic market.

The Irish Hotels Federation (IHF) said early indications suggest that Irish people are more inclined to consider holidaying at home this year which will help the sector recover from a “very challenging” year.

National room occupancies are 55%, a level not experienced since the early 1980s.

However, president of the IHF Paul Gallagher said the sector is resilient and has made it through an exceptionally difficult 2009.

“It is our aim to emerge through 2010 with a stock of hotels and guesthouses that continues to secure a positive future for Irish tourism in the medium to long term,” he said.

IHF chief executive John Power said the volcanic ash crisis has, like the weather-related travelling difficulties in January, the potential to have an “enormous impact” on hotel and guesthouses businesses.

One hotel affected was the five star Castlemartyr Resort in Cork which was due to hold a major conference over the affected weekend. Organisers were forced to cancel the two-day event, having booked out 70 rooms at the hotel for the weekend. Rooms for one weekend night can cost up to €220. However, general manager Andrew Phelan said he hopes bookings for the summer will be up on last year.

General manager at The Malton Hotel in Killarney, Conor Hennigan, who is also on the board of Fáilte Ireland, said he believes the hotel industry is optimistic about the season ahead.

“That said it has got off to a difficult start due to the appalling weather conditions in January and February followed by the access issues created by the volcanic ash.

Mr Hennigan said the hotel sector is resilient and many businesses believe 2010 will be similar to last year and it could be 2011 before there is growth.

“There are incredible deals available throughout every sector of the tourism product, and in some cases some hotels are selling at cost just to generate business and keep the business going.

“This is very good for the consumer in the short term; however, it is not sustainable, and in some cases has been achieved through great co-operation from employees who have taken pay cuts and are helping to take other costs out of the business,” he said.

Business at the Malton for the first three months of this year was slightly down on this time last year, with Mr Hennigan saying January was a “very difficult month”.

“However indications are very strong for the latter half of the year, so we’re hoping to finish our year stronger than last year and make up for the first quarter,” he said.

Another hotel in Killarney, the Quality Resort, said signs are more positive this year with Easter up 20% on last year. Managing director Patrick Dillon said they learnt a lot of lessons from last year. “For the summer the level of early bookings would indicate a stronger position than last year. New branding has been well received by our clients and the emphasis on our online strategy is delivering results.”

Meanwhile operations manager at Fernhill House Hotel, Neil O’Neill, said they are taking a “very positive outlook” towards the summer.

“We are very busy with weddings at the hotel. Although we are worried that overseas numbers are down we are hoping that this will be counteracted with the re-opening of the Cork Swansea Ferry.”