Nearly nine in 10 guesthouses show increased business

Bulk of sector has hired additional staff

Tourists in Temple Bar. The majority of hotels and guesthouses have seen an increase in business
Tourists in Temple Bar. The majority of hotels and guesthouses have seen an increase in business

Some 87 per cent of hotels and guesthouses in Ireland have increased their business this year, another signal that the recovery in the hospitality sector continues to gain momentum.

The latest hotel barometer from the Irish Hotels Federation (IHF) also shows 73 per cent of hoteliers have hired additional staff this year, helped by a 10 per cent rise in visitor numbers in the year to date.

Refurbishment projects

The survey also found 83 per cent of owners plan to increase their investment in refurbishment projects over next 12 months. IHF chief executive

Tim Fenn

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said this was a “positive” signal that the sector was returning to good health. “It means that cash is being generated and is then being reinvested in properties, which is important.” he said.

Mr Fenn said it was also key that the hospitality industry retained its reduced VAT rate of 9 per cent, which was introduced by the Government to help the sector get back on its feet. “We have to remain competitive. It’s an important support measure for the industry,” said Mr Fenn. He cautioned that the industry still faces a number of significant challenges, with the overhang of debt estimated at €5.3 billion.

The IHF chief said the recovery is not evenly spread across the country. While Dublin and other large urban areas are “doing well”, the recovery is less evident outside the main tourism hotspots with many rural areas continuing to face difficulties in attracting visitors, he added. The barometer found 43 per cent of hoteliers were concerned about the viability of their business over the next 12 months. This figure is down from 63 per cent a year ago.

‘These gains’

“The challenge we face is to ensure these gains are better spread throughout the country. This is where initiatives such as the Wild Atlantic Way can make an enormous difference to regional tourism provided they receive sufficient investment in marketing and product development,” Mr Fenn said.

In its pre-budget submission the IHF has called on the Government to allocate additional funding for international marketing and to fund a medium- term investment programme for the development of tourism-related infrastructure.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times