Tour operators believe worst is over

The vast majority of tourism operators believe the worst is over after the beleaguered sector suffered one of its toughest years, it was revealed today.

Almost two-thirds of businesses dependent on holidaymakers feel the next 12 months will be on a par or better than last year, compared with just a fifth heading into 2009.

Revenue dropped 17% last year to its lowest level since 2004, while the number of overseas visitors plummeted 12%.

Fáilte Ireland said it hopes 2010 will mark a turning point for the sector and is unveiling new strategies to encourage growth, including giving visiting pensioners rail discounts.

Redmond O’Donoghue, Fáilte Ireland chairman, said: “This time last year, as we surveyed the tourism landscape, the outlook amongst tourism operators was universally bleak, prompting a widespread belief that 2009 was all about survival.

“This year the tectonic plates of business sentiment are shifting somewhat.

“Now operators are expressing greater confidence about the immediate future and at the very least are expecting greater stability upon which to begin recovering market share.

“That said, 2010 will still be a year of tough trading.”

Failte Ireland said the downturn in international tourism hit the country badly last year, making for an “ugly” year of trading.

Key statistics for last year include:

:: Total overseas visitor numbers fell by 12%.

:: Revenue from tourism totalled €5.2bn – a 17% drop on the previous year.

:: British visitors dropped 16%, with spending by British travellers down by a quarter because they were avoiding euro-zone countries.

:: Holidaymakers from Europe and the US were down 8%.

:: Some 94% of hotels experienced a drop in the number of bookings.

:: On the up side though the Volvo Ocean Race in Galway last June was one of the few successes of the year, bringing in €56m and attracting a massive 650,000 visitors to the west-coast city.

To boost the sector this year Failte Ireland will support businesses dependent on tourism, spend €20m in boosting tourism attractions and infrastructure such as walking trails and launch its biggest-ever home-holiday market advertising campaign.

The organisation said it wants to capitalise on the fact that more people are staying at home for breaks instead of going abroad.

“Although the year ahead will be tough, there are some comforting signs,” Mr O’Donoghue said.

“I am particularly encouraged by the signals from the front lines of tourism where business sentiment is now tilting towards the current downturn levelling off in 2010.

“Furthermore, recent research is indicating that more and more Irish people will be staying at home this year – providing greater potential for the home holiday market.”

Fáilte Ireland said that despite the upbeat assessment by businesses, bosses were angered by the continuing high cost of local authority, energy and insurance charges.

The body also said the opening of the National Conference Centre in Dublin’s Docklands will help attract overseas businesses for working visits.