€100m in tourism investment put on hold
Two of Clare’s most prestigious golf resorts, Dromoland Castle and Doonbeg, both confirmed yesterday they were postponing new developments. And in Ennis, the Flynn Hotels Group suspended a project to build a new €25 million 120-bed facility on the grounds of the Our Lady’s Hospital.
Alan Flynn, who also runs the Ennis’s Old Ground Hotel and the Imperial Hotel Cork, said it will not proceed if the Heathrow link is lost.
The group already employs 133 people in Ennis and he said the loss will result in a reduction of up to 20% in turnover requiring a similar cutback in staff.
He said there is unprecedented anger among people in the County Clare capital and it has finally hit home the threat now posed to the region’s economy.
“I think it is despicable that since this announcement we have heard nothing from who I call the three Ts, the Taoiseach, the Tanaiste and the Minister for Tourism.
“Fair play to Mary Coughlan: within hours of the foot and mouth outbreak in England she was on television reassuring people. But complete silence from the people leading our sector.
On Wednesday Dromoland Castle was granted planning permission at the second attempt for 32 golf lodges and an upgrade of its complex.
It had planned to invest more than €25 million in the project. However, within hours, its board of directors had met to suspend development.
Managing director Mark Nolan said: “We took the view that until the position is clearer and we know what is happening with the Heathrow route, we are stalling it.
“I have never, never seen a backlash like this. There is a palpable sense of anger about how this was conducted, when the announcement was made and what has happened since.
“I have been in three meetings already today and the feeling of deep-rooted disgust is everywhere,” he said.
The Shannon branch of the Irish Hotel’s Federation carried out a survey of the region to assess the impact of the loss of the link.
Its chairman, Michael Vaughan, said passengers of the Heathrow to Shannon flight accounted for €50m of revenue among local hotels last year.
The additional spend in the local economy, based on the amount of nights spent in the area, was €100m.
The loss of this business prompted the Doonbeg resort to reconsider its development in west Clare.
General manager Joe Russell said the next stage of development, worth €50m, is now in doubt.
“The owners had plans to spend another €50m there. The uncertainty that rests over Shannon is certainly not giving them any confidence.
“The Open Skies focused the mind. Shannon on Monday came as an absolute shock,” he said.
Mr Russell said the jobs it creates in the isolated area of west Clare, which has seen the population of Doonbeg grow by 25% since the opening of the resort, is in question.
“Our business relies on inbound traffic, not just the US but also the UK. Aer Lingus was the national carrier, identified with flying to Shannon — and Heathrow was the main hub,” he said.
A crisis meeting for tourism groups along the western seaboard is scheduled to take place on August 15 in Dromoland Hotel.
