Hotels feel the effect as Brexit begins to pinch

HOTELIERS and guesthouse owners in Kerry are reporting a continued fall in business levels from the UK this summer according to a new survey by the Irish Hotels Federation (IHF).

While business levels overall were up nationally across the summer months, with seven in ten hoteliers seeing an increase compared to this time last year, most reported a fall in business from Great Britain. More than half saying Northern Ireland business levels had dropped too.

The results of the industry barometer echo the latest CSO figures which show that Brexit is already having a significant impact on Irish tourism.

Visitor numbers from Britain have decreased by 7.1 per cent for the first eight months, compared to the same period last year according to the IHF.

The UK, Ireland’s largest source of inbound tourists, accounts for over 40 per cent of all visitors, providing the widest regional and seasonal spread.

For now, strong performances by the US and domestic markets are helping to offset the significant fall-off in business from the UK.

Patrick O’Donoghue, Chair of the IHF’s Kerry branch says the uncertainty around Brexit poses a real threat to the tourism industry, with regional tourism likely to be hit hardest.

Tourism currently supports 11,000 jobs in Kerry and contributes some €508 million to the local economy annually.

“Many of the consequences of Brexit are largely outside our control, so it is imperative that we mitigate the risks and potential damage where we can,” he said.

“We are calling on the Government to take the necessary steps to protect Irish tourism and to avoid any changes in policy that would weaken our sector’s ability to deal with the risks it faces due to Brexit. The nine per cent VAT rate for tourism, in particular, continues to deliver enormous benefits to the exchequer by making us more attractive as a tourism destination,” said Mr O’Donoghue.

“The overall rate of tourism growth is also continuing to slowdown, which is worrying. The cuts to marketing funding and development in the recessionary years should also be reversed urgently,” Mr O’Donoghue said.