Reasons to be cheerful

So it looks like we are making progress in revitalising our tourism industry. The latest figures from the CSO are encouraging: an increase of over 12% from overseas visitors in the last seven months. Tourism Ireland Niall Gibbons, remarking on the results, stated "The growth... is good news for everyone in the tourism industry. Visits from Great Britain, our largest and most important market, increased by +9.3% during this period; from North America by +13%; from Mainland Europe by +13.7%; and from Australia and developing markets by +18%.

"These figures represent a welcome return to growth in overseas tourism and a positive January-July period, even accounting for the poor weather and volcanic ash disruptions that characterised the early part of 2010. Industry sentiment, while still mixed, generally reflects this more positive picture although the distribution of visitors is somewhat uneven and some areas have performed better than others". Tourism Ireland have embarked on an Autumn campaign to try and capitalise on late booking trends - 30% overseas business can be derived during that period - so let's hope the upward trend can be continued.

An interesting report from Unilever Solutions recently brought home some sobering facts in regard to lost profits from wasting food. At a time when most businesses are trying to reduce expenditure and save hard earned cash, hotels and restaurants are throwing money away. A staggering €125 million is potentially lost each year this way. This is not anecdotal, but based on research carried out with the RAI, over a 100 chefs, and Unilever Solutions. The average yearly loss in Ireland is estimated to be in the region of €8,840 per establishment. This could be the difference of staying in business or facing closure. The solution is in the hotel and restaurant's own hands. (See report on Page 42-43)

Another reason to be cheerful? Fáilte Ireland has come up with a campaign that has real potential for the tourism coffers. The Gathering 2013 will be a year-long series of events aimed at involving everyone from the home market to the Diaspora throughout the world. (See report on Page 12) This homecoming of all homecomings is being billed as the biggest tourism initiative ever staged in Ireland. It is projected to generate in excess of €200m in revenue for the country, along with significant job opportunities as a result of the year long festival. Over 325,000 extra visitors are expected into Ireland, as a result of the initiative during the year-long event. Spearheaded by Failte Ireland, with support from Tourism Ireland and headed up by former diplomat Tim O'Connor, it will have a budget of between €12 and €16 m. A board will be appointed over the next few months to oversee and manage the events planned. This has the potential to deliver real results. Key to its success will be the take up by the industry and the wider target audience.

Also encouraging is news that the average hotel room prices in Ireland rose 2% in the first six months of the year, according to the latest Hotels.com Hotel Price Index. It's the first time hotel prices have risen in Ireland in three years, indicating signs of recovery in the market. This is in contrast to recent market performances that saw hotel rates fall 35%. The average hotel room rate in Ireland is now €81 per night, compared to €79 for the same period last year.

As we head into the last quarter of 2011 there are genuine reasons to be optimistic about the year end and 2012. The government have supported the industry and the signs are that this will continue. Despite all the negativity, Ireland is achieving what was set out with the IMF. Tourism was considered a key component of this recovery. And it is delivering.

So let's hope the budget in December will bring more initiatives like the VAT reduction and JLC review and more innovative campaigns like The Gathering 2013 to continue the growth and returns for the country. It's worth remembering that over 230,000 people are engaged in the sector. No one can argue its importance to our continued recovery.

Cyril McAree

Editor