Non-availability of tourist beds a threat to 2023 season, Minister told
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Tourism Minister Catherine Martin has been warned by her own department that there is growing concern for the 2023 tourism season, given the numbers of Ukrainian refugees in tourist accommodation.
She has also been told that the "non-availability” of tourist accommodation, taken up by refugees, is disproportionately affecting some towns and counties, is costing hundreds of millions of euro to the wider non-accommodation economy, and leading to hotel pricing issues, especially in Dublin.
“The reputational risk already arising from Ireland cancelling contracts with tour operators could cost Ireland business for several years," the minister was told in a background briefing in recent weeks.
"In addition, rural towns and businesses will struggle to survive and when a hotel returns to accommodation use, it takes longer to re-establish the hotel and local services will already be diminished. When accommodation is returned to the tourism sector, it will also require refurbishment, which take several months.”
Hotels are not suitable for families in the medium term and it is “vital” that the Government moves to alternative accommodation solutions, Ms Martin was advised in documents released under Freedom of Information.
As of October 22, the International Protection Procurement Services (IPPS) had contracted 23,456 hotel bed spaces or 15.27% of the 153,625 total. When Dublin was excluded, the percentage of total bed spaces in use by IPPS rose to almost 18%.
"There are also impacts on the wider tourism and hospitality sector, eg tourism attractions, restaurants, and pubs,” according to the documents.
While overseas tourists spend 29 cent of every euro on “bed and board”, 71 cent of tourist spending is outside that of accommodation.
The use of hotel accommodation by IPPS is “hampering” the ability of tour operators to confirm bookings for the year ahead, they stated.
Certain counties — Clare, Kerry, and Donegal — are “disproportionately affected by entire hotels being contracted by IPPS".
In Co Clare, 30% of bed spaces registered with Fáilte Ireland are contracted by the Government now. Towns including Lisdoonvarna, Ennistymon and Youghal are disproportionately impacted by the unavailability of accommodation and the wider economy is affected.
The cost of 15,000 unavailable bed spaces in “non-accommodation opportunity” is up to €325 million, according to an analysis provided by Failte Ireland to the Department as background.
“If the unavailable bedspaces increase to 20,000 then €433m is lost,” Failte Ireland state.
“On a positive note” around half of the 7,100 Ukrainians now in employment in Ireland have taken up jobs in hotels, bars and restaurants, some working multiple jobs, the minister is told.