Just one-in-eight tourism businesses operating at full capacity

Dublin has been particularly badly hit by the restrictions, with 98% of businesses reporting reduced customer levels, according to Fáilte Ireland. File Picture: Getty

Two out of every five businesses in the tourism sector have failed to reopen since the lockdown in March to prevent the spread of the Covid-19 pandemic, with only one-in-eight operating to full capacity.

The results of a new survey by Fáilte Ireland show only 61% of firms reopened for business at some stage in the past six months.

In addition, only 13% are operating to the maximum level, with more than half of all tourism businesses claiming they were operating below 50% capacity.

The survey of over 950 firms in the tourism sector conducted in September also revealed that 13% of businesses said they had ceased trading as a result of the restrictive measures, although Fáilte Ireland said the finding mostly applies to 2020 and did not necessarily mean they had closed permanently.

A further 31% of businesses said their bookings were down by more than half this year.

“Generally speaking, those reopening are less dependent on large groups and overseas tourists and are more likely to capitalise on the domestic market,” a Fáilte Ireland spokesperson said.

B&B owners have been worst affected by the Covid-19 pandemic with only 45% having reopened since March.

The figure was 63% for pubs and 68% for hotels, while 71% of tourist attractions had reopened.

The highest level of reopening was among restaurants where 76% of businesses were trading over the summer.

The results also highlight the stark impact of the downturn in the tourism industry, particularly on the normal busy summer season.

The survey showed that only 11% claimed they had more customers than normal during July and August with 78% reporting fewer customers and 11% operating at the same level as other years.

Fáilte Ireland said the sector in Dublin had been hit particularly hard, with 98% of tourism businesses in the capital reporting reduced customer levels, due largely to the city’s reliance on the overseas tourist market for business It claimed the restrictions on the staging of events such as festivals, exhibitions and sports, meant Dublin’s tourist offering was not currently appealing to domestic tourists.

As for the traditionally quieter autumn period, 90% of businesses said they had fewer bookings than normal from tourists.

In terms of Government supports for the sector, the Employment Wage Subsidy Scheme, which provides a flat-rate subsidy based on the number of paid and eligible employees, was the most valued with 42% of businesses claiming the EWSS would be their choice if they could avail of just one initiative.

A reduction in VAT was cited as the next most welcome support which was favoured by 16% of businesses.

Fáilte Ireland said feedback from tourism firms showed the EWSS had saved many jobs and businesses to date.

However, it said employment levels across the industry were down, especially among seasonal staff.

Just over half of all businesses said they had employed fewer permanent staff this year but 77% said the number of seasonal staff hired was down on summer in 2019.

The survey showed that 44% of all businesses in the tourism sector had sought finance to get them through the crisis, of which almost two-thirds said they were successful in securing funding.

Coach operators, golf clubs, guesthouses, hotels, restaurants and pubs had above-average levels of need for financial support.

Only a quarter of B&B owners and self-catering operators who sought finance were successful.

One of five businesses who were refused funding claimed they were told their sector was too high risk.

Fáilte Ireland said some businesses which had remained open were vocal about restrictions on the number of people allowed on their premises, claiming the “one size fits all” measure was unfair on larger premises which could accommodate more visitors safely.

It said many claimed any measure should be based on square feet per guest like in Northern Ireland.

“The turbulent nature of the pandemic and efforts to control it impact significantly on operators’ bookings and ability to plan,” it added