Tourist numbers up 7% but sector still ‘fragile’

The number of tourists visiting Ireland was up 7% last year, but the recovery follows the disastrous 2010 figures when the Icelandic ash cloud wiped out tourism revenue.

Speaking at the Irish Hotels Federation’s 74th annual conference, chief executive Tim Fenn said Irish tourism remains in a fragile state.

Hotels and guesthouses are struggling to cope with a two-speed recovery in the sector, and improvements in occupancy levels across Dublin, the West and South-West masked disappointing figures throughout the rest of the country, he said.

Mr Fenn welcomed a 7% increase in visitor numbers to 6.26m but said the British market remains the most significant challenge facing the industry, with the market experiencing a 26% drop in visitors since 2007.

Mr Fenn said: “The fall-off in British visitors from 3.8m in 2007 to 2.8m last year is a stark reminder of the amount of ground lost and the urgent need to reinvigorate our most important tourism market.

“A 3% increase in British visitors last year is some level of progress but we need innovation and creative thinking from our tourism bodies to encourage the level of British visitors to return,” Mr Fenn said.

“This must include campaigns specifically focused on attracting a greater spread of visitors to the regions, promoting specific reasons to visits,” he added.

“When people think of holidaying in Ireland, the image should be of a fun and vibrant destination — blessed with a wealth of scenic attractions, steeped in history and culture and offering a warm and friendly welcome,” he said.

The sector is still recovering from the 27% reduction in overseas revenue since 2007. However, tourism revenue reached €4.77bn in 2011 (up from €4.6bn in 2010). Mr Fenn said revenues were made up of €3.56bn from overseas visitors and €1.21bn from the domestic market.

“Hotels and guesthouses are struggling to deal with reduced revenues that are effectively the lowest room rates in Europe. Our members are offering prices that give very little return but, in the current climate, it’s the only option to stay in business,” said Mr Fenn.

“Value has never been better for consumers but it comes at a cost to the sector struggling under high operating costs and exorbitant local authority rates.”