Arrivals from Mainland Europe fell by almost 17pc with all of the major European markets registering double digit declines, it said.
Failte Ireland said profitability fell for most accommodation providers last year, with two out of three hotels, three quarters of guesthouses and four out of five B and Bs reporting lower turnover.
Its research suggests that domestic holidays in 2010 were more or less on a par with 2009, although spending on home holidays declined.
Two-thirds of businesses expect to maintain their 2010 prices in 2011 but one-third are expecting even further declines, Failte Ireland’s End of Season Review and Outlook shows.
“Tourism businesses walked the tightrope in 2010 – paring back prices and offering good value while ensuring that their businesses remained viable. Despite being an incredibly punishing year for tourism, most businesses survived through a mixture of innovation, experience and sacrifice. Even in the hotel sector, while revenues fell significantly, the vast majority of our hotels have renewed their registration for 2011 despite the avalanche of closures predicted during 2010. The survival of tourism businesses through a year such as that is a testimony to the resilience of the industry and to a certain ‘can do – will do’ attitude out there,” said Redmond O’Donoghue, Chairman of Failte Ireland.
Chief executive Shaun Quinn said that there are some favourable factors now coming into play after a difficult year.
“Our own falling prices, the recent cut in the Air Tax, the rise in VAT in the UK and the growing strength of sterling to the euro all combine to make Ireland an even more attractive and accessible option for potential British visitors,” he said.
