Hoteliers' warning over future of tourism industry
The compulsory Shannon stopover for US visitors must be abolished to secure the future of tourism in this country, it was urged today.
The Irish Hotels Federation (IHF) warned there is an urgent need to renegotiate the Ireland and US air agreement to ensure increased flights from North America to Ireland.
“We know that the ease of access to our country is a key factor in US visitors, in particular, deciding to come here,” said John Power, chief executive of the IHF.
The organisation, which held its 67th annual conference in Cork today, is hoping to begin negotiations on the stopover later this month.
“American holidaymakers tend to spend longer in Ireland than any other nationality,” he said, adding that the average US visitor spends 900 euro.
Tourism Minister John O’Donoghue said: “I am convinced that once key access issues, in particular the adjustment of the Bilateral Air Transport Agreement, are satisfactorily resolved, Irish tourism is ideally positioned to tap the vast potential that exists in the US market.”
Mr O’Donoghue told the delegates: “Despite fears in relation to the currency differential, visitor numbers grew by 8% to over 970,000. Clearly, 2005 will be the acid test of our competitiveness in this market.”
The tourism chief said that the federation has estimated that numbers could increase by 50% to 1.5 million over the next five years if a greater number of direct routes are put in place.
Mr Power said the tourism figures had revealed overseas visitors were abandoning their tradition week-long stays in favour or three or four day breaks.
Figures from the IHF’s annual report showed that there was an increase of 3% to 6.4 million visitors last year.
Mr Power said tourism revenue had remained static at 5.2 billion euro and there had been a slowdown in the growth rate of visitors.
“People travelling to Ireland are staying for much shorter periods and the knock-on effect for regional tourism is cause for concern,” he said.
The IHF said the Government must also stand over its promises for a fast turnaround second terminal at Dublin Airport to support the target of attracting 10 million visitors by 2012.
The Tourism Minister later told the delegates that a mandatory and up-to-date hotel classification system must be installed.
“I do not think that it is acceptable any longer for a significant part of our hotel properties to remain ‘unclassified’,” Mr O’Donoghue said. “If we are to take the consumer perspective – which we must if we are to survive – such a system is unsustainable.”
Mr O’Donoghue said this would represent a milestone for the industry and said discussions on the introduction of a new classification system were at an advanced stage.
The latest figures revealed a drop in visitor numbers from the UK – which were down 1% to 3.5 million.
Mr O’Donoghue said the State agency, Tourism Ireland, had reviewed the market and found that more of Ireland’s activities and events should be offered through dedicated holiday packages.
Mr Power said an opening up for several new European routes had accounted for the increase in visitors from mainland Europe by almost 8% to 1.58 million.
The IHF also declared soaring overhead costs the biggest threat to Ireland’s tourism business.
Richard Bourke, IHF president, warned that costs are rising far more rapidly than in other competing holiday destinations.
He said the lack of visible Government action on the issue was threatening efforts to remain competitive.
The IHF said the Government must put measures in place as the industry has been faced with cost increases of up to 24% over the last two-years.
“While the hotel industry is trying to cut its cost back to remain competitive, many hotels and guesthouses are struggling to keep basic overheads under control,” he said.
The tourism minister said that the State agency, Failte Ireland, has been rolling out several initiatives to help tourism businesses manage costs.
