Belfast hotels a Brit special Performance among UK’S best but fall forecast

14.1%

Belfast’s hotel sector is one of the best performing in the UK but 2018 could be a challenging year. Following a review PWC also predicted an easing of economic growth, a potential slowdown in tourism and a jump in the supply of rooms may see a drop next year.

Northern Ireland partner Martin Cowie said hotels are facing a number of challenges.

He added: “The level of sterling is attracting leisure tourists but it is also creating a harsher environment for hoteliers as they have to contend with rising costs and squeezed margins with the weak pound pushing up the cost of imported goods.

“The Brexit vote has prompted some workers from EU countries to leave their jobs and we are seeing some hotels struggling to fill these vacancies and facing higher costs when they do so.”

Despite the potential problems, the city’s hotels are performing strongly at present. In the seven months to July they increased their average daily room rate by 14.1%, much higher than the 4.7% rise across the UK.

Prices in the city have historically been amongst the lowest but stand at £76.70, fifth highest amongst the 22 cities PWC reviewed and up from £70.50 in the same period last year.

Occupancy levels jumped by 5.5%, well above the average of 1.4%.

Mr Cowie said: “The weakness of sterling encouraged record numbers of international leisure tourists to visit London and UK regional cities.

“The terror attacks in London and Manchester appear to have had limited impact on visitor levels, meaning hotels have performed strongly so far this year.

“However, the weak pound doesn’t appear to have boosted international business travel to the UK reflecting corporate uncertainty around Brexit, and this has to be something of a worry.”

Mr Cowie added the UK regions should enjoy further growth in 2018, albeit at a slightly slower pace due to a drop in sterling and conferences. He said: “Regional occupancies have climbed back into the 70% territory since 2011 and have been creeping up to reach historic highs. “Belfast continues to be a mustvisit destination and the steady increase in performance metrics suggests this is driving the city further up the performance league. “However, with almost 80% average occupancy, the city may be vulnerable to hundreds of new rooms coming on stream at roughly the same time and operators may struggle to maintain average occupancy levels and revenues in the off-seasons.

“It’s important the city and region create new attractions and refresh existing successes, while developing products that draw tourists and conferences.”

Increase in room rate compared to 4.7% rise across the UK