THE MAJORITY of hoteliers and guest house owners in Limerick and across the country are reporting continued growth in business compared to last year according to the latest quarterly barometer¹ from the Irish Hotels Federation (IHF).
However, the survey also shows that the industry is feeling the effects of the fall in the value of Sterling with one in three hoteliers (36%) saying that it has negatively impacted their business. This comes as the latest figures from the CSO² show that while visitors from Great Britain are up 9% year on year, the rate of growth has slowed. The UK market accounts for approximately 40% of overseas visitors, making it Ireland’s largest source of inbound tourists, which highlights the potential exposure of Limerick’s tourism industry.
Elaina Fitzgerald-Kane, Chair of the Shannon Branch of the IHF says “Visitor numbers are up overall, which is good news. Tourism now supports 7,000 jobs in Limerick and contributes some €243m to the local economy annually. However the impact from the fall in Sterling’s value and the slowdown in growth are worrying and leave no room for complacency. We are doing our best to maintain competitiveness through constant monitoring of costs so that we continue to deliver good value to all visitors and especially visitors from the UK. The pro-tourism measures of the Government are vital too and the latest barometer shows just how critical the Government’s recent decision to retain the 9% VAT rate was to the industry that is so price-sensitive and vulnerable to external economic shocks.”
Summary breakdown across markets (compared to the same period last year)
Ireland: 71% of hotels and guesthouses are reporting an increase in domestic visitor numbers with 24% seeing no change and 5% noting a decrease.
Britain: Visitor numbers from Britain are up 13% year to date with 36% of hotels and guesthouses seeing an increase in business from this market (June barometer: 62%); 41% report no change (June barometer: 34%) with 23% are seeing a decrease (June barometer: 4%).
North America: Visitor numbers from North America are up by 15% with 66% of premises noting an increase (June barometer: 65%), while 33% see no change and less than 1% report a decrease.
Europe: Thirty eight percent (38%) of hotels and guesthouses are reporting an increase in visitors from Germany (55% see no change and 6% note a decrease) while 30% are benefiting from an increase in visitors from France (63% see no change and 7% note a decrease). Visitor numbers from the rest of Europe are up by 11%.
