Confidence builds in hotel sector slieve russell manager

Confidence levels among hotels and guesthouses in Cavan strengthened during the first six months of 2015, according to the latest quarterly barometer from the Irish Hotels Federation (IHF).

Results show that the domestic market is beginning to recover, with most hotels reporting growth in business levels from the island of Ireland as more people take holidays and short breaks at home and spend money on leisure activities.

Tony Walker, Chair of the Cavan Branch of the IHF, and general manager of The Slieve Russell Hotel says that further recovery in domestic tourism will be essential for the many local tourism businesses in Cavan that rely heavily on the home market to remain viable.

Mr Walker says many hotels and guesthouses in the region rely on the home market for over 80% of their business. Key areas of growth include short breaks, outdoor activities, spa & leisure, and conferences and business events.

Overseas tourism is performing strongly for the country as a whole – up 12% so far this year, with strong growth from Britain, North America and continental Europe. Mr Walker points out, however, that while Cavan is attracting more overseas visitors, the upturn is to a lesser extent than seen in the rest of the country.

'With the peak summer period now under way, visitor levels are up and premises are generating increased revenues which is having a positive impact on sentiment among many of Cavan’s hotels and guesthouses,' he said.

'It should be noted however that overall levels of growth are from a very low base following the economic downturn, so the recovery is very much in its early days.' 

Mr Walker said that the upturn in tourism is being underpinned by a number of supportive measures from the Government, including the zero rate travel tax and the nine per cent tourism VAT rate, which has brought Ireland more closely in line with tourism VAT rates across the rest of Europe.

'The nine per cent VAT rate, in particular, is of enormous importance to tourism businesses – both in terms of the domestic market and in attracting overseas visitors. With revenues being continually reinvested within the sector, the initiative continues to enable the industry to create additional employment locally in Cavan. This is good news for the local economy as the majority of hotels and guesthouses plan to increase staffing levels further over the next twelve months,' he said, adding that the high cost of doing business in Ireland as a significant challenge, including excessive local authority rates which stifle cost competitiveness within the sector.