05/03/2002

Northern visitors help offset hotel losses in Republic

Average national levels of hotel room occupancy in the Republic of Ireland showed a four-point drop to 61 per cent in 2001, according to latest Bord Fáilte figures.

However, in its annual Hotels Survey for 2001, the Irish tourist board revealed that a strong showing from the domestic market and in particular visitors from Northern Ireland helped minimise losses in what was a very difficult year for the Irish hotel sector.

Niall Reddy, acting chief executive of Bord Fáilte said: “The results of this survey certainly reflect the difficult time experienced by all sectors of the tourism industry in 2001, particularly in our important overseas markets of mainland Europe and North America.

“However, it is not all bad news and it is heartening to note that there were actually increases in uptake from the domestic and Northern Ireland markets, with gains of seven per cent and per cent respectively. These markets are going to be central to the development of tourism throughout 2002, while we strive to claw back the losses sustained on other fronts”.

In 2001, the domestic and Northern Ireland markets accounted for 54 per cent of all bed nights sold, while the British market also showed an increase of two per cent, despite movement restrictions caused by Foot and Mouth Disease.

However, the effects of the two main body blows suffered by tourism in 2001, the outbreak of Foot and Mouth Disease and uncertainties caused by the events of September 11 are clearly borne out in the hotel figures.

The traditionally strong months of April and September saw occupancy rates fall by 12 and 11 percentage points respectively on 2000. Meanwhile, demand from North America was down by 21 per cent overall and by 18 per cent from mainland Europe.

Regionally, Dublin which is particularly dependent on overseas markets, suffered a six percentage point decline in room occupancy levels, while room occupancy rates in the West fell five points to 50 per cent. The North West, which relies heavily on the domestic and Northern Ireland markets reported a relatively small drop-off in room occupancy while a particularly strong performance from these markets greatly aided figures in the South West which suffered from the loss of North American business.

Mr. Reddy concluded: “2002 is set to present an enormous challenge to our industry, however due to the excellence of our hotels product I am confident strides can be made towards a recovery on the losses sustained last year.

"However it is important to be vigilant about pricing, particularly from the European perspective, and not to lose sight of the great potential offered by the domestic and Northern Ireland markets."

(MB)

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