Tourist numbers drop for first time in seven years

The number of overseas visitors to Ireland fell for the first time in seven years in 2008, according to new figures published by Fáilte Ireland.

The agency's end of year review indicates that tourism revenues declined by 2 per cent last year to €6.3 billion on the back of a 3 per cent fall in visitors to Ireland.

Fáilte Ireland attributed the drop in visitor numbers to the global economic recession and the decline in the value of both the dollar and sterling against the euro.

The organisation said it expected to see a further decline in visitor numbers in 2009. It added that employment in the tourism sector has fallen by up to 10 per cent over the past year.

Overseas visitors to Ireland from North America fell by 9 per cent compared to 2007 and those who did enter the country lin 2008 spent 18 per cent less than in the preceding year.

Visitors from Britain were down 5 per cent over the year and British tourists spent 2 per cent less versus 2007.

On a brighter note, visitors from other parts of Europe spent 8 per cent more in Ireland in 2008 compared to the preceding year.

The number of people coming to Ireland for business reasons or visiting family or friends rose last year but holiday visitors were down 8 per cent.

Analysis of the home market indicate at best no growth in revenue or volume for the first time in many years.

“The out-turn for 2008 was pretty much in line with expectations and, if anything, was probably better at a national level than we originally forecast," said Fáilte Ireland chairman Redmond O'Donoghue this morning.

“That said, last year was very much a season of two halves with tourism performance falling off sharply and business becoming more difficult for operators as the second half of the year progressed – mirroring the difficulties in both national and global economies," he added.

According to the review, three-quarters of hotels in Ireland reported that business was down in last year compared to 2007 with just one in ten citing increases.

Only one in five hostels and self-catering establishments reported overall growth and overall both sectors were down on average. The number of B&B’s, guesthouses and caravan/camping operators experiencing growth was even less — approximately one in ten.

More than half of hotels, B&Bs and self-catering operators expect to see a decline in revenues this year while Two-thirds of guesthouses, car rental companies, visitor attractions and retailers reported that they expect difficult trading conditions in 2009.

Fáilte Ireland said that a major part of its focus this year would be attempting to persuade more Irish people to holiday at home. The organisation is planning to spend in excess of €163 million on a marketing campaign aimed at encouraging people to stay local.

An additional €164 million will be spent by the agency in supporting local and national festivals.

“There is still a great deal to play for in the tourism market. Even at worst, the predictions are that over seven million people will visit Ireland, and the foreign earnings tourism generates will be more important to the economy than ever before," said Fáilte Ireland chief executive Shaun Quinn.

We have a much improved infrastructure that offers demanding visitors a better experience than ever before. By managing the downturn and preserving the strengths of the industry through it, we will be in a good position to recover our numbers as the global crisis alleviates," he added.