Hotel group warns of downturn for Irish tourism
One of the country's largest hotel groups has warned of a potential downturn in the domestic tourism sector unless Ireland's label of an expensive overseas destination is redressed.
Dunne Group (DG) Hotels claims that the huge increase in the number of accommodation providers across the country has not led to a corresponding drop in room rates.
The group also says that the continued weakening of the US dollar and strengthening of the euro, coupled with the emergence of cheaper holiday destinations, is leading to a decrease in the number of American visitors to Ireland.
"Increasing numbers of price-conscious American tourists are deciding to ditch stays in Ireland in favour of cheaper overseas destinations", said Mr Christy Power, Commercial Director, DG Hotels.
"Central Statistics Office figures for August revealed that trips to Ireland from the US decreased by 4,100 compared to the same period last year. The figures also showed that high-spending US
visitors, that once dominated overall tourism numbers to Ireland, are being replaced by traditionally lower-spending tourists from Britain and other European countries.
"The Irish tourist sector simply cannot sustain its growth if this decline in US visitor numbers is to continue."
Mr Power said that the Irish hospitality sector needed to take account of the situation by presenting Ireland as a more affordable tourist destination for prospective American visitors.
"Despite the considerable increase in the number of accommodation providers being established here we have not seen a significant and widespread drop in accommodation rates, as would have been expected from increased competition in the sector.
"Accommodation providers need to reinvent themselves and offer year round real value if their product is to be attractive to potential long-stay tourists," he said.
Commenting on the potential impact of lowered accommodation rates in the West of Ireland, where DG Hotels operates six hotels, Mr. Power said: "The anticipated loss of the Shannon-Heathrow service and the threat posed to Shannon Airport's transatlantic routes in an Open Skies era will further compound the problems faced by the West of Ireland's accommodation providers if they do not seek to redress the situation."
