Tills are ringing as employers splash out on Christmas parties

Tills are ringing and party-goers are singing with 70 per cent of Christmas party venues recording an increase in bookings as employers share the benefits of a recovering economy, according to the latest “Barometer” survey from the Irish Hotels Federation.

It said 90 per cent of its members reported an upturn in business, following a 13 per cent increase in overseas visitors.

Of those hotels catering for corporate meetings and business events, 71 per cent said they saw an increase on last year.

However more than one-third of hotels, some 34 per cent, said they are still struggling with overhanging debt and remain concerned about the viability of their business.

Tourism is one of Ireland’s largest indigenous industries, supporting about 205,000 jobs – equivalent to 11 per cent of total employment in the country.

According to the survey almost two-thirds of hotels, some 64 per cent, took on new staff in 2015, with the tourism industry accounting for almost 4 per cent of gross national product.

According to the survey the vast majority of Irish hotels and guesthouses are now upbeat going into 2016 with 92 per cent saying they have a positive outlook for the next 12 months.

The confidence also comes on the back of figures from Tourism Ireland which estimate that by December 31st, 7.9 million people will have visited the island during the year – beating a previous record set in 2007.

Home market

All key markets are doing well including North America with visitors up 13 per cent, Britain which has delivered an increase of 11 per cent and the rest of Europe up 14 per cent. In addition some 85 per cent of hoteliers report an increase in business this year from the home market. This is important for the sector given demand from the island of Ireland accounts for the majority of all hotel bednights, at 69 per cent.

In the run-up to Christmas, growing consumer confidence and recovery in the domestic economy have been clearly evident, the hotels federation said.

However, Stephen McNally, president of the federation, said issues around cost competitiveness need to be addressed and “the increasing cost of doing business in Ireland poses a serious challenge to tourism as the recovery in the economy takes hold”. High costs include excessive local authority rates, increasing labour costs and high utility costs, he said.

Mr McNally noted that the benefits of the recovery are not being felt to similar levels throughout the country.

He said growth in occupancy continued to lag behind in areas outside the traditional tourism hotspots due to an over-reliance on the domestic market – which accounts for over 80 per cent of revenue for many hotels and guesthouses outside the larger urban areas.