Minister warns of testing year for tourism

Minister for Arts, Sport and Tourism John O'Donoghue said the tourism industry was facing another testing year following the release of official figures which indicated an increase in overall visitor numbers but a decline in those coming from North America.

Figures produced by the Central Statistics Office (CSO) yesterday show that the number of trips made to Ireland by visitors from overseas increased by 13 per cent in March 2005 compared to the same month in 2004.

The figures indicate there was a 54 per cent increase in the number of trips made to Ireland by visitors from Europe in March compared with the same period the previous year. The figures for the UK for the same period show an increase of 6 per cent.

However, according to the new CSO figures, the number of trips made to Ireland by visitors from North America was down 10 per cent in March compared to the same month in 2004.

The CSO said yesterday that overall in the first three months of the year 1,796,500 trips were made to Ireland, an increase of around 6 per cent on the same period in 2004.

The CSO figures also indicated a surge in the number of Irish people travelling abroad. The number of overseas trips taken by Irish residents increased by 25 per cent in March compared with the same month the previous year.

In a statement issued yesterday following the publication of the CSO figures, the Minister said that 2005 would be another testing year for the tourism sector "as it addresses the formidable competitive challenges in the international marketplace".

He described the early figures from the North American market as disappointing, but said the picture could change later in the year. "There is still everything to play for. The industry needs to remain focused on delivering the best possible value for money for those who choose to holiday in Ireland," he said.

Mr O'Donoghue added that as the CSO figures related to the first quarter of the year, they needed to be interpreted with caution. "Overall overseas visitor numbers are up 6.5 per cent on the same period last year, with Europe and Britain between them providing an additional 100,000 visitors," he said.

"The North American and other long-haul destinations are down on the same period last year and, while these first-quarter results are disappointing, there are still grounds for optimism for the remainder of 2005 from both market regions."

Mr O'Donoghue said the increased seat capacity on routes from North America, up 17 per cent on 2004, and the increasingly favourable euro-dollar exchange rate should have a significant impact over the summer months.

Forecasting the tourism season had become much more difficult because of the growing propensity for last-minute booking.

However, he said, Tourism Ireland and Fáilte Ireland remained optimistic that the target of 5 per cent growth in overall visitor numbers could still be achieved for the year.