THE NUMBER of tourists visiting Ireland this year fell to a 12-year low, according the an end-of-year review by the Irish Tourist Industry Confederation.
More than one million fewer visitors came to Ireland in 2010 than in 2009, a drop of 16 per cent. From 2007, the peak year for tourists numbers, there has been a 2.2 million drop in visitors, the confederation said.
It estimates that visitor numbers for 2010 will stand at 5.5 million, a figure last seen in 1998. Earnings from overseas visitors have fallen by one-third over the last three years with annual revenue now €1.7 billion less than in 2007.
Confederation chairman Tom Haughey said he believed tourist numbers had got as low as they possibly could.
“The anticipated recovery in Irish tourism did not materialise in 2010, with extremely difficult trading conditions precipitating a further decline.”
However, he said “there are indications that the decline in visitors to Ireland has almost bottomed out and I am confident that we should soon see an upturn in demand”.
Despite the disastrous figures for 2010, Mr Haughey said he was optimistic about the outlook for 2011.
“I am confident that recovery will take hold next year. Any growth in 2011 is likely to be modest, but it will provide the platform from which we can rebuild a strong and sustainable sector.”
The Government’s four-year plan and the Budget had given the industry positive expectations for the year ahead, he said. Mr Haughey said he particularly welcomed the commitment to review restrictive wage agreements which were impeding competitiveness and employment.
“Far more than the minimum wage, these agreements have driven people out of business. Many hotels and restaurants simply can’t afford to open on a Sunday because of the wage bills. These agreements are defeating their own purpose because they are depriving people of employment.”
The reduction in air travel departure tax from €10 to €3 should also help recovery next year, he said. Coupled with the strengthening of sterling and the US dollar it should encourage an increase in overseas visitors.
“Recovery for Irish tourism will depend on restored growth from the top four overseas markets: Britain, the US, Germany and France. There has been no growth in holidaymakers to Ireland from Britain for most of the past decade, and failure to reverse this situation will stunt overall recovery.”
The industry had worked hard over the past couple of years to restore competitiveness and dispel the image that Ireland was an expensive country. However, he said there was no room for complacency.
Hotels and restaurants in particular had a difficult December with the severe weather and water cuts. Mr Haughey said he would like to see the Government put pressure on banks to extend credit to small businesses to carry them through January and February.
