Hoteliers fear complacency on Brexit threat

BREXIT remains a major concern for the hotel sector in Kerry according to the latest survey by the Irish Hotels Federation.

With UK visitor numbers down by six per cent year on year, according to the latest CSO figures, three in five hotel and guesthouse owners in Kerry say the weakened Sterling has had a negative effect on their business during 2017.

Almost a third of those surveyed also report a fall in business from Great Britain with two in five seeing a similar drop from Northern Ireland. However, growth in overseas visitor numbers from other markets – especially US, France and Germany – as well as a strong performance in the domestic market have helped to compensate for the fall in UK visitors.

The net effect though is that overall growth is slowing, with overseas visitor numbers increasing by just three per cent to the end October 2017, compared with an 11 per cent rise at the same time last year.

Patrick O’Donoghue, Chair of the IHF’s Kerry branch said it’s a nervous time for the industry.

“While visitor numbers may still be up, the tourism and hospitality sector cannot afford to be complacent about the future,” he said.

“The continued fall-out from Brexit and the slowdown in visitor growth are worrying as they have a significant regional bias. For too long we have had a two-tier tourism sector where businesses in the major cities and tourism hotspots benefit more than the regions,” Mr O’Donoghue said.

“We must diversify into new markets and we welcome the work being done in that regard. However, it cannot be at the expense of our existing markets, particularly the UK, which has the broadest regional and seasonal spread of visitors,” he said.

“Time and again tourism has shown itself to be an excellent investment for every euro spent in destination marketing. Our survey shows that hoteliers are planning to increase their own marketing spend next year too but more targeted investment is needed particularly in regional marketing support and in the development of new and engaging products,” Mr O’Donoghue said.

According to the IHF nearly nine in ten hoteliers plan to undertake refurbishment or capital investment projects over the next year while over half expect to increase their staff levels in 2018, with most intending to recruit staff across all levels of their business. Tourism currently supports 11,900 jobs in Kerry and contributes some €508m to the local economy annually.

Insurance, wages, and local authority rates are amongst the most commonly cited issues that are having a “very significant negative impact” on the hotel sector.