Threat to B&Bs as owners near retirement

The traditional Irish Bed & Breakfast sector is under threat, with around 60 per cent of operators forecasting that their businesses will close when they retire due to lack of interest among family members in taking over, a new survey has indicated.

Alan Hill, chief executive of the Town and Country Homes Association, the largest representative body for B&Bs, said yesterday the unwillingness of the next generation to take over businesses from their parents was the biggest challenge facing the sustainability of the sector. The average age of B&B operators in the association is almost 60.

Mr Hill said the next National Development Plan must feature a comprehensive strategy for product development, training and marketing to help make the sector more attractive.

He was speaking in advance of a new survey of B&B operators, to be launched today by Minister for Community, Rural and Gaeltacht Affairs Éamon Ó Cuív, which will reveal that most businesses in the sector are profitable. Based on 2005 figures, about half of Irish B&Bs had a turnover of between €5,000 and €15,000. In 2005 the average B&B generated profits of around 10 per cent of turnover.

Mr Hill said the survey, of 175 B&B operators, indicated that international tour operators considered standards in B&Bs as well as the manner of the proprietor - the traditional Irish welcome - to be more important features than price in inhibiting growth in the sector.

The survey found that 84 per cent of operators were confident for the future of the sector.

The B&B sector has come under pressure in recent times from budget hotels and a trend among visitors towards shorter city breaks.

The survey found that despite these difficulties, more than 90 per cent of B&B operators surveyed reported that their businesses were profitable. Around 75 per cent believed they would perform as well or better in 2006 than last year.

Mr Hill said the survey showed there was huge resilience and optimism across the sector, and a strong appetite for change and improvement.

One message arising from the survey was that the B&B was at the heart of the Irish tourism industry, he said, and that the sector represented a vibrant business proposition that made a real economic contribution to communities throughout the country, he said.

One of the central planks of a strategy drawn up by the Town and Country Homes Association for the sector was the development of "themed" B&Bs.

This would involve developing B&B packages which, in addition to accommodation, would include activities such as golfing, walking or angling.

The association said in a statement that fewer than one in 10 businesses currently provided packages or other activities outside of accommodation.

"International demand is significant, with 85 per cent of tour operators surveyed indicating that the provision of activities like walking, golf, fishing or equestrian holidays through B&Bs would be an attractive proposition," it said.

"In response, more than 40 per cent of businesses said that they would be interested in devoting time and resources to developing these initiatives which would represent a considerable enhancement of the quality of the offering."

The association's chairwoman, Carol O'Gorman, said that innovation and investment would be the keys to securing the future of the businesses, but that investment need not be expensive.