Tourism revenue will reach a record £2 billion in 1997, the Minister for Tourism, Dr McDaid, said yesterday. This is mainly due to a strong performance from the British and US markets, though France and Germany were disappointing.
Dr McDaid said special attention will have to be paid to continental Europe in 1998. Prospects for Germany, in particular, are said to be mixed.
Overall, visitor numbers grew by 7 per cent to just over 5 million. Jobs in the tourist industry grew by 6,000 last year and it now supports total employment of 115,000.
Dr McDaid said that these record figures were satisfactory but that not all regions or sectors had shared equally in the growth. The increase in accommodation capacity outstripped demand, putting pressure on the rates owners could charge, according to Dr McDaid. Bord Failte has been asked to lay special emphasis next year on encouraging visitors away from Dublin and the east coast, which has been attracting more than their share of the growth because of the cheap access to Dublin. Dr McDaid welcomed the small but significant increase in visitors from Japan and Australia to 199,000. Forecasts for 1998 released by Bord Failte indicate that Britain is expected to achieve a growth in numbers of 10 per cent, North America 7 per cent and continental Europe 3 per cent. The Irish Tourist Industry Confederation (ITIC), the sector's umbrella body, said yesterday positive factors working in the industry's favour next year include further growth in capacity by the airlines and car ferries. ITIC predicts further downward pressure on air fares.
However, ITIC is also pointing to a number of negative factors. It fears the excess capacity in bedrooms and Shannon cruisers, which are heavily dependent on the difficult German market. ITIC also draws attention to the dangers of abolishing duty-free within the European Union, which is expected to increase air and ferry charges.