The tourist industry provided solid back-up growth for the economy as it emerged from recession during the past two years and the indications are it will continue to perform strongly in 2015. The number of visitors from North America reached a new high, prompted by a weak euro and a knock-on effect from the Gathering, while the domestic holiday sector enjoyed a fine and extended summer season. There are worrying signs, however, that some service providers have forgotten past competitiveness lessons.
Tourism grows or declines on the basis of consumer satisfaction. In a competitive international market, where holiday bookings are only a mouse click away, value for money is a prime consideration. During the Celtic Tiger years Ireland became an expensive holiday destination, offering poor value for money. When recession hit, the consequences were devastating. In the three years to 2010 the number of foreign visitors fell by a quarter and many companies went out of business. Since then there has been a steady recovery, based largely on cheap hotel accommodation. But a survey in the Dublin area last year showed that only 38 per cent of visitors regarded eating out to be of good value. That is a worrying figure as a special VAT concession was given to the tourism industry to encourage competitiveness.
The greater Dublin area continues to dominate the sector, attracting more than half of all overseas visitors. Efforts to promote other regions have had limited success through the Greenway cycling trail and the Wild Atlantic Way, which has immense branding potential. The southeast and Border regions require particular attention and, in that regard, the Government should consider the promotion of walking and hiking holidays in rural areas and linking cycle routes as much as possible. Visitors have identified these pursuits as their primary holiday activities. But, because of limited public access to mountainous and otherwise scenic areas, Ireland is unable to compete with Scotland or Wales for this growing market. The Government should introduce amending legislation to provide access to scenic areas.