Every cloud…

They say every cloud has a silver lining and maybe the current economic situation can help us out. A recent report from About Hotels.com declared that we now had some of the most cost-effective room rates in Europe. Irish hotel room rates are down 4% yearon- year, despite global upturn of 2%. The average room rate in Ireland is €79 compared to €82 in 2009, and is now back to 2004 levels. Ireland is the least expensive destination in Western Europe and the fourth most inexpensive in Europe. Dublin is now one of the best value major cities in the world - the average room rate is just €73, while Kilkenny is the most expensive destination in Ireland (€112). Waterford is the least expensive at €56. Despite the continued fall in Irish hotel prices, globally hotel prices increased by 2% in 2010. While the Irish hotel market appears to be taking longer to recover than other countries, the rate at which Irish prices are falling is beginning to stabilise compared to 2009 which saw room rates drop 21% year-on-year.

The announcement of the Queen and Obama visits should give our beleaguered industry hope for the season ahead. The Queen's visit will include a tour of historically significant sites, including Croke Park, Dublin's Garden of Remembrance, the national stud in Kildare and the Rock of Cashel. The Obama visit will also involve a number oftrips: to Moneygall and perhaps also a rally in Croke Park.

Given the importance that the IMF/EU bailout has placed on tourism, it is disappointing to see the industry relegated to a lesser position within the Department of Transport, Tourism & Sport. At a time when we need to maximise our take from tourism, now is the time for a decisive decision to position tourism as a key conduit of the economy.

Tourism is still Ireland's largest indigenous industry, employing 200,000 people and bringing in an excess of €5 billion per annum (down from €7 billion at its peak). A look at some of our near neighbours in Europe shows a different and varying understanding of the tourism role. The French, for instance, are acknowledged as world leaders in the field of tourism, and the industry there is under the auspices of the Ministry of Economy, Finance and Industry. Instead of learning from the experiences of the best, we seem to be taking the unimaginative line and following the example of our neighbours in Britain. This is not a progressive step. It's regressive, in fact. While the Minister seems to be committed to the sector, his task is not helped by the positioning of this department.

That said, the government has indicated it is willing to address some of the more contentious issues facing the sector, including the JLC wages, and is working on stimulus packages to help create and sustain employment now and in the future.

Cyril McAree

Editor