Visitor numbers to Ireland grew to an all-time high of 6.7 million in 2005 but rural areas lost out, according to figures released yesterday.
Total earnings from tourism last year amounted to €5.3 billion, up €200 million on 2004 and the number of tourists travelling to urban centres including Dublin, Limerick, Kilkenny, Waterford and Galway increased. But visitors to rural areas continued to decline, according to a review of the year by Fáilte Ireland.
Trips from continental Europe increased by 16.9 per cent, particularly from the accession countries. Visitors from Britain were also up by 2.7 per cent, but numbers from North America were down.
The increase in visitors from the Continent was attributed to a larger number of direct access routes to Ireland and a growth in the trend in trips to visit friends and relations working in Ireland.
Domestic tourism continued to grow last year with Irish people taking 3.1 million holidays in Ireland, up by 51 per cent since 2000.
Shaun Quinn, chief executive of Fáilte Ireland, said that occupancy levels in hotels were up to 64 per cent but that the international average was 70 per cent.
"It is clear that the return on assets can be improved, that capacity is likely to be at optimum level and that the removal of tax incentives for hotel construction in the 2005 Budget was timely," he said.
Around 230,000 people were employed in the hospitality sector in 2005 and one in four hospitality workers were not Irish. Tourism was Ireland's most important indigenous industry last year, accounting for 3.7 per cent of Gross National Product.
But growth targets in the industry, set by the Tourism Policy Review Group, will be difficult to reach if progress on the second terminal for Dublin airport does not move forward, according to Fáilte Ireland's chairwoman, Gillian Bowler.
"There was some important progress made in 2005, with major infrastructural projects such as the National Stadium and National Conference Centre moving forward," she said. "But without the second terminal we will not make growth targets. T2 is crucial."
She cited lack of progress in access for walkers and trends such as shorter breaks and shorter booking times as having negative effects on rural tourism.
"The lack of progress in areas such as access for walkers, despite two years of effort, is deeply disappointing and is greatly to the advantage of our competitors, as Ireland is effectively not a player in a growth market."
Visitor satisfaction was high last year with 96 per cent of people surveyed responding that their holiday in Ireland either matched or exceeded their expectations.
Some 89 per cent of respondents said that they chose to holiday in Ireland because of the "beautiful scenery", 86 per cent were attracted by the "friendly people" and 84 per cent said that they came for the "natural, unspoilt environment".
Value for money was the most criticised aspect of holidays in Ireland, but there was a slight improvement in visitor rating with 67 per cent finding it fair, good or very good, the first improvement since 2001.
Tourism businesses are optimistic about the industry's prospects for 2006, with the exception of those in the angling sector.
The overall growth target for 2006 is 4.9 per cent, which would see Ireland attracting over seven million visitors. Fáilte Ireland is hopeful of an 8 per cent growth in in visitors from mainland Europe, North America and other areas, and a 2.2 per cent growth in visitors from Britain.
The Ryder Cup, to be held in the K Club in Kildare in September, is seen as an important opportunity for the industry.
It will have a potential television audience of one billion, with estimated earnings in the region of €140 million. Some 40,000 people will visit the golf course daily during the tournament.
