Local hoteliers cautious about Brexit despite growth in overseas visitors
Cavan-Monaghan hoteliers today welcome the continuing growth in visitors to Ireland as recorded in the latest CSO figures. These show a 9.8% increase in trips to the Ireland by overseas visitors between May-July of this year. Local hoteliers caution however that the effect of Brexit and the weakness in sterling need to be monitored so that the sector can plan for potential negative impact.
Tony Walker, Chair of the Cavan-Monaghan Branch of the Irish Hotels Federation states: “The tourism industry in Cavan and Monaghan is continuing to recover which is very welcome in terms of our local economy. However, Brexit is a significant concern with Sterling having fallen by more than 16% against the Euro compared to this time last year. This could have a negative knock-on effect on tourism.”
Tax
Mr Walker states that the tourism industry continues to provide economic growth and employment opportunities in Cavan and Monaghan thanks to a number of direct actions from the Government, including the zero rate travel tax and the 9% tourism VAT rate.
“The 9% VAT rate in particular has been of major significance to the industry. This has brought our VAT rate into line with other European destinations and helped level the playing field for tourism businesses to compete for visitors. This has led to increased visitor numbers and also allowed tourism businesses in the area to create additional employment whilst reinvesting revenues in the sector. Tourism is now a major contributor to our local economy, generating €90 million in Cavan and Monaghan supporting 4,600 jobs.”
He points out that, in addition to the increase in overseas tourism, it is heartening to see that national tourism efforts to reignite the domestic tourism sector are having an effect. He says that Cavan and Monaghan hotels and guesthouses are witnessing increased business from Irish holidaymakers as growing numbers of people take full advantage of the good value available.
“This is particularly welcome given that domestic tourism accounts for up to 80% of businesses for many hotels in Cavan and Monaghan.”
Mr Walker cautions, however, that growth in hotel revenues in Cavan and Monaghan are coming from a low base following the downturn and that many hotels and guesthouses in rural areas continue to face significant challenges.