As less fly abroad, Fáilte Ireland to launch new Home Holiday campaign.Following a very difficult season in 2009, the Irish tourism industry is relatively more optimistic about its prospects for this year, with almost two thirds of operators expecting that business in 2010 will be similar or better than in 2009 according to the latest Failte Ireland Tourism Barometer.
Tourism revenue declined by almost 17% in 2009 to €5.2 billion - its lowest level since 2004, reflecting difficult trading conditions in key overseas markets, most notably Britain and the United States and intense price competition within the accommodation sector, particularly hotels. The number of overseas visitors travelling to Ireland fell by 12% and as expected, domestic trips within Ireland are estimated to have declined by about 5%.
Introducing Fáilte Ireland’s End of Season Review and Outlook, Mr Redmond O’Donoghue, Chairman of Failte Ireland emphasised –
“The downturn in international tourism witnessed over the second half of 2008, accelerated during 2009 and made for an ugly year of trading for many businesses. That said, it is hoped that 2010 will be ‘the last tough year’ in what has been the most challenging cycle that Irish tourism has experienced. Businesses successfully trading through 2010 will have proved themselves resilient and capable of taking full advantage of the inevitable global economic upturn. We, in Fáilte Ireland, have already refocused much of our investment towards supporting businesses and employment through the next 12 months and positioning the industry best for a recovery which we believe will begin in some markets from the second half of the coming season.”
Prospects for 2010
The current indications are that 2010 will be another tough year for Irish tourism as many key markets continue to battle adverse economic conditions. The prospects for some markets, such as Germany and other key Continental European markets appear relatively favourable and growth is expected in 2010. Larger traditional markets including Britain and the United States will remain challenging, regardless of exchange rates. Home market prospects remain unclear although consumer research indicates further potential as Irish people cut back on foreign trips. Overall, tourism operators are more optimistic about the coming season than they were a year ago. Heading into last year, only 20% of tourism operators expected business to either hold or improve. This year, 63% expect 2010 to be on a par or better than 2009. A majority expect employment levels in 2010 to be the same as 2009, while less than one in twenty acknowledge the prospect of any increase.
Successful steps taken by individual businesses in 2009 to cut costs substantially paid off and have put the industry on a stronger footing than a year ago. However, many businesses are now expressing deep concern about the continuing high cost of Local Authority charges, energy and insurance.
Fáilte Ireland’s CEO, Shaun Quinn, drawing on these indicators, pointed out - “This time last year, as we surveyed the tourism landscape, the outlook amongst tourism operators was universally bleak, prompting a widespread belief that 2009 was all about survival. This year the tectonic plates of business sentiment are shifting somewhat. Now operators are expressing greater confidence about the immediate future and at the very least are expecting greater stability upon which to begin recovering market share. That said, 2010 will still be a year of tough trading. Pressure on revenues remains intense and while many operators have taken tough steps to reduce those costs within their control, the continuing high level of local authority charges, energy costs and to a lesser extent restrictive pay structures are collectively placing an undue burden on the industry. Hopefully, this year will be the one where we turn the corner. However, there is no room for complacency and Fáilte Ireland will be stepping up its efforts – from helping to sustain individual businesses to stimulating consumer demand – to develop Irish tourism to reach its full potential”.
