Domestic Market vital to Tourism Recovery

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

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