Tourism leaders express fears for industry

TOURISM leaders have expressed concern about the short-term outlook for the industry as the number of overseas visitors to Ireland fell by 3% in 2008 — the first overall reduction since 2001.

The Irish Tourism Industry Confederation (ITIC) also reported an associated drop in revenue from foreign tourists — down 4% or €200m to €4.7 billion — which it blamed on the global economic downturn.

In its annual end-of-year review yesterday, the ITIC also warned that the recent increase in VAT rates could cost 15,000 jobs in hotels, restaurants and other visitor attractions next year.

However, it stressed that tourism remained a vital industry for the Irish economy as 7.5 million overseas visitors combined with domestic tourists generated €6.2 billion in revenue this year.

ITIC chairman Dick Bourke expressed disappointment with the downturn in the sector but said the results still represented a very creditable performance which underlined the resilient nature of Irish tourism.

Mr Bourke also called for existing levels of investment in promoting Ireland as a tourism destination to be maintained, as well as asking the Government to consider a temporary reduction in VAT rates for one year.

“It is incumbent on policymakers to take measures to restore consumer confidence and to help boost the overall economy,” said Mr Bourke.

The ITIC has also recommended that the recent national wage agreement should be abandoned due to the reversal in the fortunes of the Irish economy and the threat it poses to employment in the tourism sector.

Mr Bourke said any wage increase coupled with a similar rise in the national minimum wage at this point would cost jobs. He also expressed concern that the current obligation to pay workers double pay for working Sundays was unsustainable.

Mr Bourke predicted that there would be further redundancies and even closures in any business which failed to offer visitors value for money.

Looking ahead, the ITIC said the tourism outlook for 2009 remained gloomy with little chance of any uplift before the following year.

It also predicted shorter stays in Ireland by foreign tourists, while business and corporate travel would also decline substantially.