Hoteliers 'optimistic' about future

Most hoteliers are cautiously optimistic about the future of their business, according to research carried out by the Irish Hotels Federation.

While 71 per cent of hoteliers and guesthouse owners expressed concern about the future viability of their business, some 51 per cent said they were optimistic about the immediate future.

Most hoteliers gathering for Irish Hotels Federation annual Conference in Killarney today said it was is too early to quantify the impact of the Gathering 2013 on bookings. But, according to the research, almost half of them were planning to take on additional staff over the next year.

The vast majority, some 96 per cent, identified the Government’s special 9 per cent vat rate as a crucial boost to their business.

On a national basis, 53 per cent of hoteliers said they were seeing an increase in bookings compared to this time last year, but almost one third, or 29 per cent, reported a decrease and 18 per cent said they saw no change.

Top city destinations Dublin, Cork and Galway were said to be benefiting from event and business-related tourism while growth was also evident in the East Midlands region, the southeast and parts of the west coast. However, occupancy levels continue to lag in the Shannon region and the southwest.

Results indicate mixed success in attracting visitors from Germany and France, the State’s two biggest markets in continental Europe. Compared with this time last year 20 per cent of respondents said they were seeing an increase in business from Germany but 17 per cent reported a decrease. Some 14 per cent said there was an increase in bookings from France, with 19 reporting a decrease.

Hoteliers cited excessive local authority rates and high electricity and gas prices as the most pressing issues stifling cost competitiveness within the sector. Limited availability of credit was also a factor.

Speaking at the conference Tim Fenn, chief executive of the federation said the sector was now on a firmer footing following the Government initiative on the vat rate.

But he urged it to provide greater certainty around its retention “so that international tour operators, who book accommodation services some 18 months in advance, can plan their trips to Ireland with greater certainty on pricing”.