Tourism numbers are up, but the sector’s growth is softening

Recent CSO data shows the number of overseas visits to Ireland from January to May increased by 3.7% compared to the same period in 2018.

Despite the increase, the industry remains cautious on the challenges ahead.

“Despite numbers being up, the rate of growth for tourism is softening,” said Fáilte Ireland’s director of marketing, Niall Tracey. “We must continue to be cautious as there are many challenges on the horizon for the tourism sector. The potential impact of Brexit on our economy is a serious concern for the industry.”

He added that cost pressures are also a key challenge, with increases in VAT, insurance premiums and labour costs the most frequently cited issues.

“Our key message for all tourism businesses is to ‘prepare and diversify’. Fáilte Ireland has a robust programme of supports to help businesses to assess risks, respond to changes, improve their channel mix and diversify into other markets and we continue to work with the industry to develop a ‘world-class’ tourism offering so that we can deliver long-term growth despite the challenges ahead.”

Comparing January to May 2019 with the same period in 2018, the figures show an extra 141,000 visitors coming to Ireland over the same five-month period last year.

Growth from Britain has remained positive — up by 0.8% to 1.48 million visitors, with North America showing the strongest growth — up by 9.1% to 813,000. Mainland Europe increased by 3.2% to 1.46 million visitors with France returning 9.3%, while Germany remained unchanged and Italy declined by 4.3%.

Last month 15 senior managers from tourism businesses across the country completed a joint Fáilte Ireland and Irish Management Institute (IMI) Hospitality and Tourism Strategic Management Programme designed to enhance capability and knowledge to deliver a competitive advantage for their tourism businesses.

Seen as essential against the continually changing commercial environment and challenging marketplace in which they are working, it will assist in helping them take their businesses to the next level.

“While 2018 had been a very successful year for the Irish tourism industry, we can’t rest on our laurels,” said Paul Keeley, director of commercial development at Fáilte Ireland.

It is always important to ensure that tourism businesses are future-fit, and this Strategic Management Programme has enabled participants to develop both themselves and their business to the next level — providing them with the valuable insights, know-how and capability to ensure a competitive advantage into the future.

Fáilte Ireland worked in partnership with the Irish Management Institute to develop the programme to enable senior tourism managers to take time away from their business to reflect about how they will develop their business into the future.

“For tourism managers to be successful they must have a comprehensive understanding of this changing environment and have a definitive plan as to how to meet the challenges in the future,” said Fáilte Ireland’s head of enterprise development, Martina Bromley. “With increasing competition in the market place, greater and more targeted sales and personalised experiences — with new and niche markets and visitor segments — is vital for the future.”