Guesthouses, B&Bs, self-catering and hostels see occupancy rates rise in first quarter 

Operators of guesthouses, B&Bs, hostels and self-catering accommodation have all seen a rise in occupancy rates in the first quarter of the year, according to Fáilte Ireland’s latest occupancy survey of non-hotel accommodation.

Operators of guesthouses, B&Bs, hostels and self-catering accommodation have all seen a rise in occupancy rates in the first quarter of the year, according to Fáilte Ireland’s latest occupancy survey of non-hotel accommodation.

The rise in occupancy levels coincides with warnings that a plan is needed to tackle a shortfall in tourism beds this summer, as more than a third have been contracted out to the government for Ukrainians and asylum seekers.

Fáilte Ireland’s Accommodation Occupancy Survey for Q1 of 2023 notes that in every sector surveyed, occupancy levels were higher last quarter than during the same period in 2022.

Guesthouse room occupancy in Q1 of this year reached 67%, “significantly higher” than 54% occupancy in Q1 2022.

There was also a significant increase in the number of beds filled in hostels, with a 52% occupancy rate last quarter up from 45% last year, and the upward trend “set to continue”.

Occupancy levels also increased for B&Bs (37% last quarter compared to 34% in 2022) and for self-catering accommodation (43% compared to 40%).

The survey notes that different sectors have seen different paces of recovery post-pandemic, as the self-catering sector is seeing a stabilisation of increased occupancy immediately following the pandemic, while the hostel sector is only now entering a steeper part of its recovery curve. 

Fáilte Ireland's May Tourism Baromoter also showed that the majority of guesthouses, B&Bs, hostels and self-catering accommodation providers are up or level on occupancy to date when compared with 2022, with accommodation providers expecting to see visitor levels up for the remainder of the year. 

The survey also notes the strength of the international market, as the guesthouse, B&B and self-catering sectors all saw the proportion of international visitors increase significantly in Q1 2023 compared to Q1 2022, "no doubt" driven by the absence of covid-19 restrictions this year. 

However, the domestic market is still important in the early months of the year from January to March, making up more than half of visitors in every sector except for guesthouses. 

Eoghan O'Mara Walsh, chief executive of the ITIC, warned this week that the sector does not have the bed stock to service demand this summer, and that the government will need to form a “comprehensive plan” to compensate for the 35% of hotel, guest house, and B&B beds taken out of the industry and contracted by the government to accommodate Ukrainians and asylum seekers. 

Mr O’Mara Walsh said that the loss of tourist spending in local economies will pose an “enormous challenge”, with the missing beds estimated to cost the industry €1.1bn over the year.