The slump in tourism continues as foreign tourists shyaway from our rising prices. Industry representatives say they're fighting to survive, writes Shane Hegarty
It's mid-summer and the tourist industry is feeling the heat. Fáilte Ireland has released the results of its Tourism Barometer - a survey of 767 tourism establishments taken at the beginning of June - and while the body argues visitor numbers are up slightly, the survey shows many within the industry believe this will prove to be a bad year.
Some 55 per cent of hotels say business is down, as do 69 per cent of guesthouses and 71 per cent of B&Bs. Activity centres claim there's been a slump in business and car hire companies are reporting a downturn. As a whole, the tourist industry in the Shannon region is claiming to be worst hit, with 71 per cent saying this will be a worse year than 2002.
Fáilte Ireland is quick to point out that the figures are not to be seen as absolute statistics, but as an indicator of the year so far. Either way, the barometer adds to anecdotal evidence suggesting this summer is proving tough for the industry. Hotels across the country continue to offer cut-price deals at a time of year when they would traditionally be hanging up "No Vacancy" signs having sold rooms at top dollar prices.
Golf tour operators are encouraging courses not to raise green fees, fearing the American golfers who have stayed away this year will be put off from ever coming back. Adding insult to injury, last week's Guardian/Observer Travel Awards - judged by UK readers - saw Ireland slip to 14th most popular European destination (from 9th) while Dublin plummeted from 39th to 59th most popular overseas city.
The Minister for Tourism, John O'Donoghue this week visited the US as part of a marketing drive, but his visit followed a disastrous start to the year. George Bush's State of the Union address at the end of January, in which he told America to prepare for war, began a two-month period during which American bookings disappeared.
While both Fáilte Ireland and the Irish Hotels Federation insist bookings are now back to the levels of last year - itself a terrible year for Irish tourism - they say it's too late.
"That period really wiped out concrete bookings, it just stopped," says Malcolm Connolly, general manager of corporate development at Fáilte Ireland. "The bookings are coming in now, but we can't make up for that black hole." Despite this, Connolly believes there will be an increase for the year in the numbers coming in to Ireland from the US, with 25,000 seats a week currently flying in. The UK market, he says, has been more disappointing, with little increase in tourists, although he points out fewer British people are taking holidays anywhere abroad this year. Instead, he forecasts a small increase in Continental European visitors.
"It's a mystery to us," says Brian Quinn of Ireland West Tourism. "They keep telling us that the planes are full of Americans, but nobody here knows where they are. They don't seem to be in the hotels, and the rural B&Bs are not doing as well as before." Even the souvenir industry, he says, is having a bad year.
The domestic market has held up well, however, and he says the UK market has been good despite Fáilte Ireland's concerns. Golf tourism has been badly affected, with counties Kerry and Cork, where up to 80 per cent of golf tourism comes from US visitors, worst hit. This has proven to be a particularly late season, with the market only picking up over the past five or six weeks. However, foreign golfers can now compare prices across the euro zone, and some companies are concerned they are becoming frustrated by high green fees.
Tourists across the board are beginning to prickle at the prices here. Those taking the self-catering option are said to be dining in more and more, having traditionally dined out in the evenings. It's another factor affecting a restaurant industry already facing a dreadful year.
"Things certainly haven't improved," says a downbeat Henry O'Neill, chief executive of the Restaurant Association of Ireland. "Our members would say that May has been very, very flat and June has been only marginally better."
Domestic spend is down and fewer US visitors have been a problem, especially for eateries along the western seaboard. "I don't see anything on the horizon to give me cause for elation. We're also coming in for a lot of slating on price, but there's not much we can do, there's not much margin for movement there."
He does say, though, his members are "optimistic by nature", and a widening of the value menu scheme to include 250 restaurants and a new focus on value wine menus may help improve things.
Ray Byrne, proprietor of the Wineport restaurant in Athlone says that the drop in American visitors has had less of an affect on his business. "It's sometimes said that the Americans see Ireland as a donut: there's lots around the edge, but nothing in the middle."
Like many in the industry, he says the good weather of March and April meant a leap in the domestic market, although it fell away again when May proved so wet. The inclusion of a value menu in April, he says, proved successful.
Last March the Wineport opened a 10-room guesthouse alongside the hotel, and will now double in size next year. "We're fairly happy that this year's business is around the same as last year, although since 9/11 the traditional peak months of July and August are not what they were. "
There are some in the industry, however, who have watched their numbers grow. Those specialising in independent travel, for instance, are enjoying a decent year.
Maeve Colohan of Paddywagon Tours - specialists in tours for independent travellers - says they are seeing the age profile of their customers rise, with more fortysomethings and fiftysomethings looking for value for money. "Backpackers don't exist now. They come over with their Luis Vuitton bags."
The company has benefited from the empty hotel and guesthouse beds. Having originally offered only hostel accommodation, this year they have struck summer deals with two guesthouses and last winter they ran deals with hotels.
"These are rooms with en suites and TVs, which is a big deal for those booking hostel tours." Colohan says advance booking is strong all the way until December.
Overall, it's a tough year, says Malcolm Connolly of Fáilte Ireland. "We're going to have to fight our way through it, but there is still a lot to fight for."
It's worth noting that in a similar tourism barometer taken during the summer of 2000, many businesses claimed it was a bad year.
It turned out they were experiencing a boom the likes of which they may not see for some time again.