Irish tourism reports difficult season

Early indications from tourism operators around the country are that a difficult season is being experienced at many levels within…

Early indications from tourism operators around the country are that a difficult season is being experienced at many levels within the sector, according to preliminary findings from the latest Bord Fáilte Tourism Barometer Survey.

This is the largest and most comprehensive survey on the tourism season to date covering almost 1000 tourism enterprises nationally.

Year-on-year comparison for any section of the industry is dependent on exposure to particular markets and the extent to which foot and mouth restrictions impacted last year.

"The survey is confirming what we have long expected, that 2002 is undoubtedly proving to be a trying year, and that a recovery cannot be taken for granted", said Bord Fáilte acting Chief Executive, Mr Niall Reddy.

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"While some sectors are rallying quite strongly, others are having a more difficult time, particularly those that are reliant on the North American market.

"The Irish market, both north and south has shown strong growth again this year".

Mr Reddy added that while some growth was being experienced in certain European markets, demand from Europe, and Germany in particular was reported by the trade to be weak.

Most worrying is the performance of Bed and Breakfast and Guesthouse accommodations, which were badly hit in 2001, and are showing no sign of any significant recovery this year.

In fact, the numbers indicating a deterioration in business compared to last year are more than double those reporting an improvement in conditions.

On balance, hotels are showing a slight recovery on the corresponding period in 2001 with 43 per cent of hoteliers reporting an increase on last year.

However, this was matched by a similar number, 40 per cent, declaring a less favourable position than 12 months ago. The overall pattern of demand is mirrored across the business, leisure and conference segments.

Hoteliers are more confident than most other sectors about the likely trends for the peak ummer months of July and August.

Self-catering proprietors indicate the same level of demand as last year, with business still down on 2000 levels.

A majority of caravan and camping operators report that activity is up compared to 2001. These areas were particularly badly hit following the outbreak of Foot and Mouth Disease.

According to Mr Reddy, it is likely hotels have made competitive share gains because of promotional offers and more recently, because of the poor weather experienced.

"However, bad weather results only in short-term gains for certain sectors when people are driven indoors and if it was to continue is likely to mean that many holidays will be curtailed to the detriment of all", he said.

The Bord Fáilte Tourism Barometer Survey was conducted in early June 2002, and in the case of the majority of respondents, answers came via the internet.

Tourism is Ireland’s third largest industry, worth €5.1 billion to the economy. Over 5.9 million overseas visitors came to Ireland in 2001.