Hotels lose business despite rising tourist numbers

THE number of foreign tourists visiting these shores is marginally up on last year but hotels and guesthouses are suffering a major downturn in business, mostly due to high prices.

A Bord Fáilte survey of almost 800 tourism establishments shows a downturn in all categories of accommodation during 2002, with guesthouses and B&Bs worst hit.

Bord Fáilte is concerned that businesses may be pricing themselves out of the market. According to its Tourism Barometer, a regular study of the industry, high prices are the single largest contributory factor in the slowdown in holiday demand for the hotel, guesthouse and B&B sectors.

Other factors include the war in Iraq, the SARS outbreak, a downturn in the world economy and the continuing fallout from September 11.

“The evidence from the first instalment of the Tourism Barometer in 2003 indicates that business is down on 2002 for the year to date. Uncertainty brought about by world events and high prices have contributed to a fall-off in demand from all of Ireland’s main markets,” said the survey.

It also pointed to increased costs in the industry and a 30% rise in premiums for public liability insurance.

Shaun Quinn, chief executive of Fáilte Ireland, said yesterday that this was the third difficult year for Irish tourism, and any improvement in overall numbers was from a low base.

“Although the first four months of the year showed an increase of 4% against last year, 2002 was very weak indeed. Visitors are staying for shorter periods and spending less.”

A spokesperson for Bord Fáilte confirmed the cost of living and overall competitiveness was hitting overseas tourist figures, but the downturn in foreign visitors was tempered somewhat by strong domestic demand.

“The home holiday business has been very positive in the past year and is now worth in the region of €1 billion annually,” he said.

However, according to the survey, hoteliers reported a decline in domestic business for the first two weeks of June. The spokesperson added that, although the number of American visitors was still markedly down on 2000, the European market, in particular Germany and Britain, had picked up.

The Tourism Barometer is a survey of 767 tourism establishments in Ireland, and was carried out by Tourism Development International/Webtourism on behalf of Bord Fáilte.

The survey, the first of three to be conducted in 2003, is based on industry feedback from June 3 to June 14.

lMillions of foreign tourists are shunning France this summer, costing the country billions of euro and threatening its position as the world’s favourite destination.

Travel agents say there is widespread evidence that the tourist industry is suffering as a result of President Jacques Chirac’s vehement stand against the war in Iraq. US business has been halved.