With "themed B&Bs" and higher standards, we can rebuild a sector of our tourism economy which has been in steady decline, writes Alan Hill.
The extraordinary growth of our tourism industry over the last 20 years was built on the highly successful marketing of three important components of the Irish holiday experience - our great people, the relaxed pace of life and our beautiful unspoilt scenery. Nowhere were all three found in greater proximity or abundance than in a Bed & Breakfast holiday, where visitors delighted in the expert local knowledge and warm welcome of several Irish families as they wound their way around our rural areas, soaking in the unique charms of the island.
Ireland gave the world the concept of the B&B. We defined it and were unequalled in its delivery. However, much like tourism itself, the B&B sector is now at a crossroads where the old ways no longer work as effectively, and strategic action taken in the near future will determine whether this sector can once again be elevated to its position of unequalled importance, especially in regional economies.
Town and Country Homes is the largest representative body for the registered B&B sector, with nearly 1,400 island-wide members. Over the last year we have attempted to understand this decline and, importantly, to identify strategic actions that will help sustain the sector. We have consulted our members on how we move forward and the valuable feedback can be summarised thus: we need to modernise, to improve marketing, embrace technology and consolidate the traditional welcome, which is our most unique and valuable feature.
We need to remind ourselves that a B&B holiday experience is taken in a family home of no fewer than three bedrooms and no more than six. All properties are independently approved. What makes the product so special is the access it gives to an authentic Ireland and the Irish. Millions of visitors from around the world have experienced this personal touch which often gives them the memories that confirm Ireland as a special tourism destination. More than three-quarters of all our members have properties in non-urban areas, thus the impact on the rural economy must never be underestimated. A recent survey indicates that the average price of a B&B home in Ireland is over €500,000, with 98 per cent of all rooms in rural areas ensuite. This confirms that the sector has invested and continues to invest in upgrading its properties.
Over the last few years all has not been perfect in tourism. We have engineered an industry that is regionally imbalanced, with 80 per cent of visitors going to the east and south of this country. The phenomenal growth of the hotel sector, nurtured through tax breaks and incentives, has increased its room capacity by nearly 75 per cent in less than 10 years, while we have seen an alarming decline of 26 per cent in the number of registered B&Bs over the same period. A quick scan of the back pages of our national newspapers demonstrates the glut of hotels that tend to use price and special offers to bring in business at any cost. This obviously has had a huge impact on the commercial sustainability of our sector, especially in the under-performing areas. In addition the retirement of older operators from the sector, together with the lack of new B&B entrants coming in to replace them, has been an unhealthy feature over the last number of years.
The sector's decline can also be explained by a lack of confidence and capacity within the sector to change, a more complex global market and sometimes ineffective alliances with our external partners. We acknowledge the strategic value of the recent B&B research by Fáilte Ireland, and we are keen to support the Product Development Review Group. This gives us confidence that our transformation process will be encouraged and facilitated at the highest level of national tourism development.
If we mine deeper this downturn is complex and it would be naive to attribute it entirely to one cause. Undoubtedly, the sector generally has not kept up to speed with the demands of the global customer. Our product offering, built on a warm Irish welcome in a comfortable home, has not altered much over the last two generations. We have not kept pace with current fashions and tastes of some consumers. We must work hard to regain lost ground and reposition ourselves for the new generation. Do our tourists really seek homogeneity of experience in every country they visit? More probingly, does the personal touch and interaction of a great B&B symbolise an Ireland we would like to believe we have left behind? If so, what does this say about us?
The B&B experience however is not defined by the measurement of a bed or the meat content of a sausage, but by the warmth and friendliness you receive during your stay. As an experiment, visualise in detail a memorable recent holiday you have had. I suggest that what you imagine will be led by a friendly waiter, a knowledgeable guide or an extraordinary host rather than by something material. This is the essence of the Irish B&B experience and explains why so many international visitors (and agents) have found it so attractive. The greatest single contribution the sector can make to sustaining its business in the short term is to continue to refine and hone this special welcome.
Fresh thinking is needed to create a holistic and tailored approach to business support for the sector (incentives, training, product development and promotion all working in harmony). In essence, a national B&B development plan with all partners pulling together. Our vision for the Irish B&B product is built on a dynamic network of hundreds of themed B&Bs. These could vary from the mainstream examples of walking, angling and golf to niche offerings like disability holidays, genealogy, language learning (English and Irish), heritage/culture, wellness and food. All this is underpinned by an internationally respected standard of delivery and environmental good practice dovetailing with the best tourism marketing on the planet.
A tourism landscape without a dynamic B&B sector would be a cold sterile place. The sector is hungry for change. Next Wednesday our members will be voting on a new constitution which embodies the values and aims of a modern organisation that can lead the way for the sector. By professionalising, innovating and working in partnership, the B&B sector has a vital and exciting role to play in the ongoing development of our much admired and imitated tourism economy.
Alan Hill is chief executive, Town and Country Homes