The Irish hospitality industry could be an unexpected beneficiary of the United States' war on terror, tourism leaders said yesterday.
Amid growing fears over global terrorism, international perceptions of the Republic as a country with no enemies is giving it a vital edge over other European states, particularly among US holidaymakers, said Mr Shaun Quinn, Fáilte Ireland's chief executive. The Republic gained market share in 2003 at the expense of Britain, France and Spain, he said.
"We are scoring high on the security front. There is an image of Ireland as a safe place to holiday. This has already had a positive impact," said Mr Quinn, at the launch of the organisation's end-year review and 2004 outlook. But Fáilte Ireland warned that the impressive growth in the past 12 months - overseas visitor numbers rose 4 per cent to 6.1 million and tourism revenues rose by the same amount to a record €5.2 billion - are unsustainable without a second terminal in Dublin Airport, a national conference centre and a national stadium.
"To see exponential growth,Irish tourism needs the urgent delivery of three major projects. Without them, the picture for 2006 and beyond looks stagnant at best and the momentum of recent years will not be sustained," said chairwoman Ms Gillian Bowler.
Concerns that the rising cost of living would harm tourism have not been borne out, Fáilte Ireland found, with rises in food and drink prices countered by falling travel and accommodation costs.
But while we have more visitors, there is a trend towards shorter breaks, with a consequent concentration of tourism in Dublin and other major cities, said Mr Quinn.
The domestic tourism market showed strong growth last year, accounting for three-quarters of hotel occupancies outside Dublin. Domestic revenues rose 12 per cent in 2003 to €1.1 billion and are predicted to grow a further 5 per cent this year, the review says.
Although tourist spending was up, sustained cost increases had squeezed margins, Fáilte Ireland said. Accommodation providers listed insurance costs as their biggest concern, with premiums up 300 per cent on average in the past four years. Higher margins and the rising cost of labour were the other principle worries identified by the group.
