Cavan and Monaghan hoteliers concerned about Brexit

Hotel and guesthouse owners in Cavan and Monaghan are concerned about the impact that Brexit will have on their business over the next 12 months, according to the latest quarterly barometer from the Irish Hotels Federation (IHF).

The UK is Ireland’s largest source of inbound tourists, accounting for over 40% of overseas visitors into the country. The economic uncertainty surrounding the UK’s relationship with the EU has fuelled concerns amongst 95% of hoteliers nationally, highlighting the ongoing risks to Cavan and Monaghan tourism from external events. The continuing fall in the value of Sterling against the Euro is also a worrying factor from a tourism point of view.

Some 4,600 people are employed in tourism-related industries in counties Cavan and Monaghan, contributing some €90m to the local economy annually. 

Tony Walker is the manager of the Slieve Russell Hotel in Ballyconnell. He is also the chairman of the Cavan-Monaghan branch of the IHF.

“The concerns expressed by Cavan and Monaghan hoteliers following the UK’s referendum result reflect the significant risks posed to the sector, with many hotels and guesthouses still in recovery mode. This comes at a time when the increasing cost of doing business in Ireland already poses a serious challenge for tourism businesses. While it is too early to predict the full effect that the decision will have on tourism in Cavan and Monaghan, there can be no room for complacency, particularly given the potential impact on visitor numbers from Northern Ireland, the rest of the UK and, and importantly for both counties,  business levels within the domestic market,” said Mr Walker today (Thursday), July 7.

Mr Walker, in an interview with this newspaper just before the referendum, expressed his concerns that an exit by Britain and the North from the EU could lead to job losses in the hospitality industry in the Border region.

In his own hotel, the Slieve Russell, he said that in 2015, 40% of weddings in the hotel came from the North.

While concerns about the impact of Brexit loom, results show the tourism industry has performed strongly so far in 2016 with overseas visitor numbers up 14% year to date, while British visitor numbers are up 16%.

Meanwhile, the recovery in the Irish economy and improvement in consumer sentiment is contributing to growth in the sector. Nationally, two out of three hoteliers are seeing an increase in home grown business with uplift in consumer confidence leading to more people taking holidays and short breaks at home. This growth is vital for local tourism businesses given the domestic market accounts for up to 80% of business for many hotels and guesthouses in Cavan and Monaghan.

Mr Walker states that the recovery in tourism in Cavan and Monaghan continues to be underpinned by a number of important measures such as the 9% tourism VAT rate and the zero rate travel tax.

He cautions, however, that the continued recovery in the sector cannot be taken for granted and that the local tourism industry remained vulnerable to external economic shocks beyond its control, such as the UK decision to leave the EU. He stresses that the recovery is not being felt to the same extent throughout the country and that conditions remain challenging for businesses in counties such as Cavan and Monaghan which rely heavily on the domestic market.

Breakdown across markets (compared to the same period last year)*

Island of Ireland:  66% of hotels and guesthouses are reporting an increase in visitor numbers from across the island of Ireland with 31% seeing no change and 3% noting a decrease.

Britain: Visitor numbers from Britain are up 16% year to date with 62% of hotels and guesthouses seeing an increase in business from this market, while one third (34%) report no change with 4% are seeing a decrease.

North America:  Visitor numbers from North America are up by 18% with 65% of premises noting an increase, while 33% see no change and 2% report a decrease.

Germany and France: Visitor numbers from the rest of Europe are up by 12%. Forty six percent (46%) of hotels and guesthouses are reporting an increase in visitors from Germany (53% see no change and 1% note a decrease) while 34% are benefiting from an increase in visitors from France (58% see no change and 8% note a decrease).

* Survey based on responses from owners and general managers of hotel and guesthouse businesses across the country and was conducted at the end of June 2016.