‘Too early to predict’ vote fallout, say tourism chiefs
TRAVEL and tourism groups have expressed concern about the impact Brexit could have on visitor numbers. Britons are the largest single visitor group to Ireland, with more than 3.5 million coming here last year – a market worth just under €1billion to the economy.
As sterling tumbled in value against the euro, there were fears that numbers coming from the UK could decline due to a fall in disposable income.
Fáilte Ireland said any volatility in exchange rates would likely have an impact on tourism numbers.
‘Fortunately for Irish tourism, visitor markets in the US and Europe have been performing strongly and are expected to continue to grow,’ said chief executive Shaun Quinn.
‘The British market has performed well so far this year, but today’s result underscores the need for the Irish tourism sector to maintain a strong competitive position,’ he added.
‘Spending by British tourists visiting Ireland rose by 17% in the first three months of 2016 compared to the same period last year.’
Fáilte Ireland said any volatility in exchange rates would likely have an impact on tourism numbers.
Fáilte Ireland will be monitoring any short-term impacts of a devalued sterling on tourist numbers and working with businesses in the sector to develop strategies to address any competitiveness challenges.
The Irish Hotels Federation said it was too early to predict the effect the decision would have on tourism.
However, it forecast that while Ireland’s competitive tourism offering would help mitigate any negative impact from Brexit, there was a risk that economic uncertainty and a weaker sterling would impact on visitor numbers from the UK.
It added: ‘The Irish Hotels Federation is therefore calling on the Government to set up a dedicated working group to examine the short and long-term implications and to ensure appropriate measures are put in place to enable Irish tourism react quickly.’
The Irish Tourist Industry Confederation (ITIC) said the implications of a UK vote to leave the EU on the Irish tourism industry would very much depend on the terms of engagement that are negotiated post-exit between the UK and remaining EU bloc. Paul Gallagher, ITIC’s Chairman, said yesterday: ‘Uncertainty is not good for any business and the tourism industry is no different in that regard.
‘Tourism employs 224,000 people in Ireland and it is a key economic sector for the country and one that must be supported in the context of the UK’s vote to leave the EU.’
The fall in sterling, and potential weaknesses to the UK economy as a result of the referendum, mean that Ireland’s competitiveness is more vital than ever.
Eoghan O’Mara Walsh, ITIC’s CEO, said the Common Travel Area between the UK and Ireland had been very beneficial for both countries and it was important that a new trading arrangement be found that made travel to and from Britain as easy as possible.
Tourism Ireland said movements in currency would impact on competitiveness and British visitors to the eurozone for the short term, were likely to see holidays being more expensive.
In a statement, it added: ‘Obviously, this is not the case in Northern Ireland where we may see some short-term gains.
‘A key priority for tourism is the Common Travel Area between the UK and Ireland and we note that this is a priority recognised by all to enable the free movement of people across our borders.
‘Tourism Ireland supports the maintenance of the Common Travel Area.’
Meanwhile, airline group IAG, which owns Aer Lingus, said that in the run-up to the UK referendum during June, IAG experienced a weaker-than-expected trading environment. A spokesman for Aer Lingus said yesterday it had no comment to make on the referendum result.
Ryanair’s Robin Kiely said: ‘It’s a good job we’re better at running an airline than political campaigns.
‘Britons are booking our £9.99 seats in record numbers in what will be the last big seat sale of its kind, as they look to flee a country which will be run by Boris, Gove and Farage.’
‘It could affect visitor numbers