Top hotels slash rates to make up for stagnant tourist market

HOTELS around the country have been slashing normal room rates in a bid to make up for an overall stagnant market in 2003.

Although tourism figures for the past year are expected to show a 4% increase in terms of visitor numbers and revenue, the hotel sector has not enjoyed the same growth, according to industry leaders.

The chairman of the Irish Tourist Industry Confederation, Brian Dowling, said many tourism interests had been forced to discount and cut margins in order to stay in business in 2003.

“While the overall figures are up nationally, not many individual enterprises or sectors will be reporting better results this year,” said Mr Dowling.

Newspapers over the Christmas holiday period have advertised dozens of special break offers by hotels around the country.

Two of the top hotels, Ashford Castle in Mayo and Dromoland Castle in Co Clare, cut their prices dramatically for the New Year.

An overnight stay in a deluxe room, including dinner and breakfast, at either hotel is currently on offer for 180 per person, compared to the normal January rate of 317 and the high season rate of 459.

Similar deals are available from all types of tourist accommodation, according to the ITIC.

Although the hotel sector has been criticised during the year for high prices, Mr Dowling said the industry was well served by offers such as those currently available.

Mr Dowling said he believed domestic tourists were also less price-sensitive than foreign visitors to rates charged by hotels.

“Sometimes we are not as discerning as we ought to be. Irish people seem prepared to pay prices for hotels that Europeans would definitely feel is too much. Maybe it is because we have reasonably good salaries,” said Mr Dowling.

However, he pointed out many small hotels that were not part of a larger group had a difficult year, especially as there was a reduction in the number of the traditionally high-spending, holiday-only tourists coming here in 2003 (as opposed to people visiting Ireland for business or family reasons).

He acknowledged that a drop in the average length of stay by visitors to Ireland last year was also a worrying trend if it should continue into 2004.