Half of hoteliers expect rise in tourism figures and job creation

Almost all restaurants and hotels expect the same or increased tourist numbers next year — with the creation of around 8,000 jobs.

The Fáilte Ireland annual tourism industry review highlighted that hotels are the most optimistic about next year, with more than eight out of 10 expecting to increase their volume of business.

More than half of hoteliers said they expect an increased number of tourists next year, particularly from North America, on top of two full years of rising tourist numbers.

Almost nine out of 10 pointed to the maintenance of the 9% Vat rate as a crucial factor in sustaining competitiveness, while the same number said it was also a key reason for their performance this year.

With almost two thirds (63%) expecting increased volumes and one third (35%) anticipating similar levels of business, guesthouses are also expecting a good out-turn in 2015 — particularly from North America.

The Fáilte Ireland review found that even the B&B sector, which was particularly hit by the downturn, is now more upbeat, with two thirds of operators expecting to see increased business in 2015.

Restaurants based in traditional tourism regions also experienced a significant increase in overseas customers during 2014 following a number of difficult years. Four out of five are now expecting growth in volumes during 2015, with the retention of the 9% Vat rate cited as a crucial measure to allow restaurants to offer better value at a time when many customers have lower disposable income.

Two in five tourism businesses are very optimistic about the anticipated benefits that the Wild Atlantic Way will bring as it is further developed and promoted at home and abroad. This is particularly the case in western regions, where this proportion rises to over 60%.

Eight out of every 10 businesses that regularly work with Fáilte Ireland expect to increase their earnings from overseas tourists next year, with 78% expecting to see improved profitability.

Low-cost competition and fuel and energy costs are the biggest worries for tourism businesses facing into 2015 — mentioned respectively by 57% and 53% of accommodation providers.

CEO of Fáilte Ireland Shaun Quinn said 2015 was set to be a “record breaking year”, adding: “Fáilte Ireland will support these ambitious targets by developing compelling reasons to visit Ireland and will work closely with tourism businesses throughout the country to sell smarter and market more effectively.”