Better value for money is way forward

THE prospect of the Government doling out money to the beleaguered tourism industry is akin to a snowball’s chance of surviving in hell.

Despite the many problems besetting the sector, in the current climate of cutbacks it is unrealistic of hoteliers to expect to be treated any differently to farmers or other interest groups.

Indeed, when the Irish Hotels Federation (IHF) appealed for special concessions in advance of a potentially difficult tourist season, a shot was fired across its bows by the country's consumer watchdog.

It would be more realistic of the IHF, which represents the country's 1,300 hotels and guesthouses, to come up with more generous measures to attract new business by giving customers better value for money, for instance.

From the findings of a recent opinion poll, it is patently clear that people are fed up of paying over the odds for the pleasure of dining out in restaurants where the lack of variety in menus leaves much to be desired.

Whether those in the industry like it or not, value for money, or rather the lack of it, is a major cause of dissatisfaction among holiday-makers, who regard Ireland as a very expensive place to visit.

Indeed, so expensive has the country become, it is widely perceived as the rip-off capital of Europe.

With tourist bookings down to a trickle, the prospect of war in the Middle East is bound to have a further negative impact on the flow of visitors to Ireland in the coming season.

Ever since the September 11 atrocity, Americans have been afraid of travelling. And according to IHF president Jim Murphy, the slump in international bookings shows this fear is now firmly rooted in the minds of many foreign tourists.

The beleaguered industry wants the Government to defer until 2004 the recent 1% increase in the rate of VAT for hotels and restaurants, to freeze local authority rates for hotels at 2002 levels and to remove the 2% levy on insurance premiums.

Growing concerns about the price and quality of the product on offer have focused attention on the need for a major review of the industry.

While 97% of those questioned in the CERT poll said they would recommend Ireland as a holiday destination to a friend, European visitors were particularly unhappy about the price and quality of food.

German tourists were complained about the price of food while French and Italians were critical of menus and food quality in restaurants.

Given the general level of dissatisfaction, a radical overhaul of the business is certainly warranted.

In many respects, the challenges facing the hotel and guesthouse sector are no different to those facing other open sectors of the economy.

Admittedly, the industry is facing difficulties because of events outside its control for the third year running.

Arguably, however, if concerns over pricing and quality were seriously addressed, it would give the industry a more competitive edge and give consumers better value for their hard-earned money.

As the Consumer Association of Ireland points out, the Irish tourism industry is less competitive and less price-sensitive than other tourist destinations.

Instead of seeking hand outs, the industry should become more consumer conscious. The only way to attract more customers is by giving them better quality and reducing prices.

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