Holiday Ireland

THERE IS no doubt the international credit crunch is having a negative impact on the tourist industry here, as it is in other…

THERE IS no doubt the international credit crunch is having a negative impact on the tourist industry here, as it is in other countries. But the "doom and gloom" attitude that has become prevalent in some sectors of the industry may have more to do with the Irish weather than with hard evidence.

Some hotels, it is true, have reduced their prices in the high season. This is not necessarily a bad thing, because of a sharp rise in the value of the euro against both the dollar and sterling. An over-supply of hotel bedrooms, built as a result of excessively high tax incentives, has also contributed.

To hear people talk, you would think a recession was well under way. But the evidence, such as it is, points to a more resilient industry. In the first five months of the year, the number of foreign tourists coming here increased by 4 per cent. And while spending per capita may have fallen, because of currency fluctuations, the overall trend was positive. Since then, a majority of hotels have recorded a decline in activity for June. But one-quarter reported an increase.

Providing value for money, even where services are not cheap, is what distinguishes a winning formula and sets the foundation for future growth. This is especially true where eating out is concerned. If people enjoy themselves, their recommendations to family and friends can be more valuable than an expensive advertising campaign. The same holds true for the provision of holiday activities: be it visiting national monuments and castles, participating in water-based activities or other outdoor pursuits such as hill walking. A happy tourist is like money in the bank.

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In Ireland, however, you cannot get away from the weather. This summer, the hoary joke held true: "If you cannot see the mountain it is raining; if you can see it, it is about to rain". Harassed Irish parents gave up listening for favourable weather forecasts as grey skies and near-record rainfall levels generated a backdrop of gloom for their families. The result is likely to be an upsurge in foreign holidays next year.

Already, more Irish people travel abroad than the number of visitors who come here and that trend may accelerate as the British economy continues to slow. The number of visitors from Britain fell last year while European numbers rose rapidly. We now spend more on foreign holidays than we earn from visitors. And because short, weekend breaks have become more important than traditional holidays, a late September/October summer would cheer up the industry no end.