Economy

Tourism

barack-obama-dublin-credit-Pete-Souza

The legacy of 2011’s high profile visitors is likely to boost tourism in 2012.

After three years of decline, Irish tourism could be on the cusp of a mini-revival, after the arrivals of Barack Obama and Queen Elizabeth.
Fáilte Ireland’s most recent Tourism Barometer survey suggests that business confidence is nearly back at 2007 levels and rose markedly during 2011.  The survey received 709 responses from businesses in November and December 2011.

Forty-six per cent of accommodation providers expected growth over the next year, up from 30 per cent in 2010 and a dismal 11 per cent in 2008.  For comparison, optimism in 2007 stood at 54 per cent.

Fifty-three per cent of respondents saw visitor numbers increase between 2010 and 2011; 32 per cent experienced a decrease.

Cheaper room rates, though, meant that better numbers did not necessarily mean better business.  Forty-five per cent of hotels reported a lower room yield, compared to the 36 per cent which saw their yield increase.

The “great uncertainty” over the euro zone’s future affected bookings, delaying decisions from the usual time of January or February.  Coach operators are “surviving” by foregoing investment but are reluctant to deter customers by raising prices.  More hardship is predicted for the restaurant trade after an “extremely difficult” year.

Preliminary numbers for 2010 saw overseas visitors drop to 5.87 million, well down from 6.56 million in 2009 and 7.74 million in 2007.  Domestic visitor numbers, conversely, rose to 7.94 million in 2007 to 8.34 million two years later, before falling to an estimated 8.0 million in 2010.

2011 figures for Northern Ireland visitors are not yet available but will be included in the final report, expected in April.
All tourists are welcome but, economically, some tourists are more welcome than others.  As the table shows, the average A

merican spends four times more than the average Irish visitor.  Total spend from British tourists is lower than other Europeans as 60 per cent stay with friends or relatives.

Across the board, 34 per cent of overseas tourists visited friends and relatives, 25 per cent rented accommodation and 14 per cent booked a hotel.

Holiday-makers totalled 2.42 million, mostly from mainland Europe (935,000) and Britain (831,000).  Most of the 798,000 business visitors were British (445,000) followed by 238,000 other Europeans and 71,000 North Americans.

Family and friends remained the main source of information when choosing a holiday (52 per cent) although the internet was the main source for planning (68 per cent).

Perhaps surprisingly, the report viewed the 2012 Olympics as an unknown quantity.  The key question was whether overseas tourists will use the short-stay visa waiver programme to cross between the UK and the Republic of Ireland.

However, Justice Minister Alan Shatter has announced that official Olympic accreditation will be treated as an Irish visa, to encourage athletes and accompanying journalists to visit Ireland too.

 

Market

2010 Visitors

Total Spend (€m)

Average spend (€)

Domestic

8.0m

1,251

156.38

Great Britain

2.71m

946

349.59

Continental Europe

1.99m

1,033

520.40

North America

853,000

532

623.68

Elsewhere

322,000

233

723.60

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