Hotel jobs warning sounded over cuts at Shannon Airport

An "access crisis" in the west of Ireland due to reduced air services at Shannon Airport could result in 800 job losses in the…

An "access crisis" in the west of Ireland due to reduced air services at Shannon Airport could result in 800 job losses in the hotel and guesthouse sector, the Irish Hotels Federation (IHF) has warned.

The latest figures from the Central Statistics Office show an 11 per cent increase in numbers signing on the Live Register in Clare, Limerick and north Tipperary during November. There are now 12,164 on the register, compared to 10,928 in November, 2000.

Nationally, the annual increase was 7.4 per cent.

The Shannon region branch of the IHF represents 84 hotels and 41 guesthouses, and employs more than 6,000 people in full and part-times jobs. Mr Daragh O'Neill, the branch chairman, said there had been a 20 per cent decrease in business volume experienced among members.

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"The entire west coast is suffering from this access crisis.There is serious concern for the 2002 season," he said.

"Serious job losses are imminent in the new year unless the problem is urgently resolved."

Meanwhile, the Irish Business and Employers' Confederation (IBEC) revealed preliminary results from a telephone survey which indicate the fears in the region for the area's economy due to reduced access to Shannon.

"There is a growing perception that the west of Ireland is now extremely difficult to travel to.

"This will hamper the attraction and retention of foreign direct investment in this region," Mr Adrian Beatty, IBEC's midwest regional director, said.

He called for accelerated investment for infrastructural projects under the National Development Plan, including the completion of the fourth Shannon crossing and the introduction of a rail spur to Shannon off the Limerick-Ennis line.

"Decisions relating to Aer Lingus and development of Dublin Airport must take account of impact on Shannon and the west of Ireland," he said.

The findings were presented to Fianna Fβil TDs from the area this week.

From the poll of 110 companies located within an hour's journey of Shannon Airport, it was estimated that more than £19 million is spent annually on air fares and over 21,000 return trips are made.

More than half of the companies use cargo services.

Nine companies make more than 1,000 trips annually and seven indicated they spend over £600,000 on airfares.

"While it is clear that large companies will be particularly affected, the survey clearly demonstrates that smaller companies will also be adversely affected," Mr Beatty said.