A wake-up call has been delivered to the Irish tourism industry by the recent inflation figures and by the findings of a customer satisfaction survey conducted last year by CERT, the tourism training body, and published last week.
That survey disclosed a 48 per cent dissatisfaction rating amongst overseas visitors because of the pricing policies of restaurants, particularly in the mid-range sector. Tourists were disappointed by a lack of variety in the food on offer and they believed that restaurants did not offer good value for money. In spite of such concerns, however, 97 per cent of those questioned were prepared to advise their friends to holiday here.
So, we still have an attractive and saleable tourism product. But restaurants and pubs are in danger of doing long-term damage to the industry through unreasonable food pricing. It is not a new problem. Price inflation in the hospitality sector has run considerably above the national average for years. Figures for 2002 showed an inflation rate of 7.1 per cent for restaurants, hotels and licensed premises. In the month of December alone, prices rose by 0.7 per cent.
Irish tourism is a hugely valuable industry. But, with war looming in Iraq and international economic recovery uncertain, it must prepare to minimise the effects of potential shocks. The best way to do that is by offering exceptional value for money. North American tourists stay longer and spend more than other visitors. But their numbers fell last year because of worries about terrorist attacks. And that trend may continue, especially as the value of the euro has risen by 23 per cent against the dollar. German numbers also declined because of their sluggish economy. And German visitors were most critical of food prices. There was, however, growth in tourist traffic from Britain, Italy, Spain and Portugal. But, here too, eating out costs were a consistent source of dissatisfaction.
There is plenty of anecdotal evidence to suggest that Irish people are also increasingly unhappy about being charged high prices for indifferent food in poorly managed restaurants. Now that the euro has become a common currency, people can make direct comparisons between eating-out prices in many EU countries. And they will eventually vote with their feet. Before that happens, the owners of hotels, restaurants and licensed premises should protect their own long-term interests by devising more varied and interesting menus and by bringing down prices.