Hotels had mixed 2019 say the IHF

AS the 2019 tourism season drew to a close, the hotel sector reported a year of mixed performances, according to the results of the latest industry barometer from the Irish Hotels Federation (IHF).

The IHF found that just 35 per cent of Irish hoteliers have a positive outlook for 2020 as the uncertainty over Brexit and the high cost of doing business take their toll and overseas visitor growth continues to slow down.

The CSO figures indicate that there was only a 1.5 per cent increase in overseas visitors to Ireland during the first eleven months of 2019, which was down from the 5.5 per cent increase for the eleven months to the end of November 2018.

While 48 per cent of hoteliers reported an increase in business for the year, 44 per cent reported a fall. 48 per cent of hoteliers reported increases in the domestic market and 44 per cent reported increases in the US market.

Meanwhile, seven in ten hoteliers saw a drop in business from Great Britain, and over half reported a fall in business levels from Northern Ireland.

“We continue to face high costs, which have been compounded by the government’s decision to increase the tourism VAT. The threat to businesses posed by escalating insurances costs is well-documented. Our members are also reporting significant pressure from rising local authority rates,” said IHF President Michael Lennon.

“The government has to do more to tackle the costs that are stifling businesses. Tourism is a highly-competitive business and these costs are making us less attractive as a destination. Decisive action is needed to mitigate the impact this will have on tourism, especially the regions.”

“Tourism supports over 270,000 jobs in every town and county, equivalent to 11 per cent of total employment in Ireland. With 70 per cent of these jobs outside Dublin, it is a major contributor to rural economies, and regional tourism is most likely to be hardest hit by Brexit and falls in visitor numbers.”