New president of hotels body calls for €300m industry plan

Joe Dolan, owner of the Bush Hotel in Carrick on Shannon, Co Leitrim, has been elected president of the Irish Hotels Federation.

Mr Dolan who was elected at the federation’s annual conference in Killarney on Tuesday immediately called for a €300 million capital budget for tourism-specific projects over the next five years.

He said the hospitality sector had benefited from positive economic trends in the US and Britain in recent years but this masked “worrying challenges facing the industry which must be tackled”.

He warned Ireland and the tourist sector in particular was exposed and vulnerable to increased uncertainty in the global economy and said it vital that we focus on achieving sustainable growth while safeguarding our market share against potential risks.”

He said a new five-year product development plan for Irish tourism with a capital budget of €300 million should be put in place for tourist product development. The €60 million-a-year plan would be equivalent to 1 percent of annual export receipts from tourism in the years 2016-2020, he said.

“I know it is a big ask but there is a proven, clear return. For every €1 spent on marketing there is a €34 return.”

He cited a reduction in funding for tourism marketing as another major concern for the industry. Since 2008, Tourism Ireland’s annual funding allocation for overseas marketing has fallen dramatically and now stands at an estimated €36 million compared to €62 million in 2008, he said.

Mr Dolan claimed the reduction in tourism funding had particular implications for regional tourism, which he said was lagging behind in attracting overseas visitors.

“Unfortunately, recent growth in visitors has not been spread evenly across the country and many rural tourism businesses continue to face tough trading conditions” he said.

In terms of capital projects, Mr Dolan said blueways - water based trails - and greenways, or walking trails, were being created “with very little money” utilising old canals and railways and these could be combined with visitor facilities such as heritage attractions.

“It is all about getting the visitor to stay the extra night, to make a day trip an overnight, to make an overnight two nights by giving people more to do,” he said.

“Product differentiation, innovation and investment are key to maintaining Ireland’s competitive positioning in the international marketplace. This requires continuous investment in product renewal to ensure that out tourism offering keeps pace with changing tastes and global competition.”

Founded in 1937, the Irish Hotels Federation represents almost 1,000 hotels and guesthouses nationwide, and employs more than57,000 people.

Mr Dolan and his family run the Bush hotel, a 300 year old former inn.