Fáilte Ireland predicts tourist industry growth in 2015

Fáilte Ireland expects levels of tourism to increase next year as the economic recovery takes hold.

The organisation’s chairman Michael Cawley said the abolition of the aviation tax in Ireland has benefitted the sector here, as has the reduction of tourism VAT to 9 per cent.

Conversely, he said Britain’s decision to increase its air passenger duty has had a negative effect on visitor numbers from the UK.

“The extent to which Britain in particular has increased its air passenger duty over the last number of years from £5 in 2007 to £13 per single flight has had a devastating effect on not just air access into Ireland but access from Britain to many of its traditional holiday destinations,” Mr Cawley told RTÉ’s Morning Ireland.

He said one of the best ways to maintain visitor numbers is to offer good value for money in areas such as hospitality.

He said Ireland has improved in this regard since 2009 when 41 per cent of overseas tourists ranked the country as poor value for money and 29 per cent said it was good value.

“The picture today is we’ve reached a level where 60 per cent of visitors rank Ireland as being competitive,” he said.

“While this is positive we still have a long way to go. This is a key issue for us. It is far easier to retain existing customers who have a good and pleasant experience than to go out and look for new ones.”

He said overall growth of 6 per cent was expected in the tourist sector next year.

Mr Cawley also rejected suggestions that an improved Irish economy will lead to an increase in foreign tourism and a knock-on decline in the domestic sector.

“An increase in holidays generally can lead to an increase in domestic demand and an increase in Irish people travelling abroad,” he said.