Irish tourism industry had 'challenging year', with demand for holidays falling

Irish tourism industry had 'challenging year', with demand for holidays falling

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A Fáilte Ireland overview of the tourism season this year said the industry had struggled through a “challenging year”, with demand for holidays here falling well below expectation.

The ‘360-degree view’ warned visitors from key markets were becoming “more value conscious” and it appeared their national economies were slowing down.

On the Irish market, it said prices continued to rise but at more sustainable rates than when inflation appeared out of control.

The 360-degree view said: “One thing that is worth calling out is the continued elevated household savings rate. If this is being driven by a precautionary motive, then many are still guarded about the future and may be slow to spend.” 

The review examined research that showed only 24% of Irish tourism businesses had more customers than the previous year.

It said this came against the backdrop of substantial growth in accommodation, with registered beds up between 2-3%.

“There are many more short-term let listings on the main platforms," it said. "The level of Fáilte Ireland registered bed stock under Government contract has fallen to 10% (from 12% in November) and more is expected to come out of contract over the summer.” 

It said the decline in visitors was more keenly felt in the south of the country, along the Wild Atlantic Way and in the Ireland’s Ancient East region.

Conversely, it had been a good year for “less mature destinations” along the northern half of the Wild Atlantic Way and in the north of the country.

The report said: “With bed night demand flat and supply growing, accommodation providers are going to feel that their ‘slice of the pie’ is shrinking.” 

It said when people went for shorter stays, they were more likely to stick to the “established hotspots and better-known attractions".

However, the 360-degree view also said high hotel occupancy rates in Dublin were having a clear impact in encouraging visitors away from the capital.

It said some tourists were avoiding trips to the city altogether “due to lack of accommodation".

“New stock will bring this displaced demand back into Dublin therefore the ‘slice of the pie’ may not be impacted as much as other locations experiencing supply additions,” the report added.

A separate update for the board of Fáilte Ireland from chief executive Paul Kelly in late September said overseas visitors had a shorter length of stay than previously.

It said full data for the domestic market was not yet available, but all indications were it would be “softer” than previous years.

“August and September have performed better than July but there are concerns for November and December performance,” Mr Kelly's report said.

It said accommodation capacity was increasing but there was still room for more.

The briefing said there had been a reduction in the number of rooms under Government contract for the provision of emergency accommodation and new hotels coming on stream.

It added: “The decline from the domestic and GB [Great Britain] markets has affected regionality and seasonality.

“Mainland Europe figures are impacted by decreased overseas travel by the German market. Fáilte Ireland and Tourism Ireland will collaboratively research new global trends on travel.”

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