The ITIC year-end report for 2009 estimates that overseas visitor numbers dropped by 12% in 2009, with an associated revenue decline of at least 20%.

Domestic tourism is estimated to have experienced an 8% drop in visits, with an associated revenue decline of over 13%.

Despite the downturn, Ireland will have earned over €5 billion from tourism this year, almost €4 billion from overseas visitors, plus almost €1.3 billion spent by Irish residents on domestic travel.

The tourism sector continues to be a valuable source of revenue to the Exchequer, yielding an estimated €1.3 billion in the current year, despite the downturn in demand.

2010 looks like another difficult year, but ITIC is confident that growth will return from each of the key overseas source markets – Britain, the US, Germany and France, albeit at moderate levels.

The report expresses concern at the precipitous fall in the UK market in recent years, but is hopeful that the decline can be arrested in 2010 and that modest growth of approximately 2% can be achieved.

ITIC is not so positive about the domestic market believing that the bottom has not yet been reached, and that renewed growth will be delayed until 2011.

To access the full Year-End Review 2009 & Outlook 2010 CLICK HERE (PDF format).

To access the accompanying press release CLICK HERE (Word format).

December 28th 2009

The level of future demand for Irish tourism will largely be determined by economic factors and consumer confidence in our main source markets. It is also probable that we are entering an era of changed consumer behaviour patterns.

Irelands two principal markets, Great Britain and the United States, between them provide over 60% of our visitors, and these markets have additionally to contend with currency movements, which of late have not been favourable toward holidaying in Ireland.

ITIC recently met up with Rossa White, Chief Economist at Davy Stockbrokers, to get his take on how he sees prospects for economic recovery and growth in some of our main source markets. Rossa knows the Irish tourism industry well, having recently served on the Tourism Renewal Group.

Click on the image below to hear what he had to say.

December 17th 2009

That’s the bold prediction in a new report launched yesterday from the National Competitiveness Council (NCC). Generating export-led growth is the only sustainable strategy to secure long term growth and prosperity.

The NCC report Driving Export Growth: Statement on Sectoral Competitiveness (click here to download the report), identifies the key competitiveness issues facing Ireland’s main existing and emerging export sectors, including tourism, and specifies policy actions required to address them.

The report deals in some detail with tourism, outlining the recent decline in visitor numbers, but pointing out the significant employment provided by the industry, with 75% of the jobs outside of Dublin.

The NCC see good potential future growth areas as, business tourism, eco-tourism, experiential tourism, and new markets, though in the case of the latter it suggests there may be a need to re-orientate the current product offering, and to make tourist visa arrangements more visitor friendly.

Cost competitiveness, the NCC points out, is a key determinant of Ireland’s attractiveness for both overseas and domestic visitors, and persistent cost increases in recent years have eroded this. Labour costs and indirect taxes, including the €10 airport departure tax, have adversely affected Ireland’s performance in this regard.

Other tourism issues highlighted as requiring urgent attention include, excess hotel capacity, access to finance for working capital, enhanced external and internal connectivity, and advanced broadband network.

The report also opines that in order to facilitate the development of a stronger and more cohesive branding of Ireland as a tourism destination for both international and domestic travel, the sector would benefit from a merging of tourism bodies.

It’s encouraging to see tourism’s economic contribution rightly recognised as a key export sector with significant opportunity for future growth.

December 8th 2009

The domestic holiday market, worth €1.5 billion annually, has more than doubled since 2000 with a dramatic growth in the number of short breaks taken in Ireland by Irish residents. Three out of every four home holiday trips are now short breaks, while the growth in domestic market demand has generated over 90% of new business for Irish hotels.

These and other findings are in a new report out today from the Irish Tourist Industry Confederation (ITIC) – the representative body for the tourism industry which is focused on the economic development of tourism in Ireland, nationally and regionally.

Over the period 2000-2008 there has been a 74% increase in the number of holiday trips and a more than doubling (+134%) of annual expenditure on domestic holiday travel. With the economic downturn, 2008 saw a slowing of growth in the number of domestic holiday trips, but that still generated 15.6 million bednights, compared to a peak of 16.4 million bednights in 2007.

The report from TTC – Tourism & Transport Consult International on behalf of ITIC, supported by Fáilte Ireland and the Irish Hotels Federation, sets out 4 possible scenarios for domestic market performance over the coming 3 years:

- a relatively quick recovery;
- a battered but resilient scenario;
- a sharp dip and delayed recovery;
- a long freeze.

ITIC believes that the most realistic scenario is a ‘battered but resilient outcome’. This would see a 10% drop in volume in 2009 followed by a further decline of 10% in 2010 before stabilising in 2011, with a modest 5% increase in 2012. This would suggest volume in 2012 at close to 2006 levels.

No matter what your business or your location, this report is essential reading for planning a successful route back to growth and renewed prosperity.

Click here for the Executive Summary.

For the full report click Review & Outlook for Ireland’s Domestic Travel Market.

December 1st 2009