Picture: Don MacMonagle
AS the 2019 tourism season comes to a close, hotels and guesthouses in Kerry are reporting a year of mixed performances but just 35 per cent of hospitality businesses are predicting a positive outlook for 2020, according to the results of the latest industry barometer from the Irish Hotels Federation.
The uncertainty over Brexit and the high cost of doing business are taking their toll and overseas visitor growth continues to slow down. The latest CSO figures, released today, show only a 1.5% increase in overseas visitors to the end of November, compared to a 5.5% increase for the 11-month period to the end of November 2018.
While almost half of hoteliers (48%) reported an increase in business for the year, slightly fewer (44%) reported a fall. Business levels from the domestic and US markets remain strong, with 48% of hoteliers reporting increases in the domestic market and 44% of hoteliers reporting increases in the US market.
The UK market continues to decline, however with seven out of 10 hoteliers experiencing a drop in business from Great Britain this year, while over half reported a fall in business levels from Northern Ireland.
The fallout from Brexit next year and the high cost of doing business remain key concerns for the sector with many highlighting the significant negative impact that escalating insurance costs and local authority rates are having on competiveness.
Bernadette Randles, chair of the Kerry branch of the IHF, said the statistics show that the government must put more supports in place to assist tourism businesses.
“We continue to face high costs of doing business, which have been compounded by the decision to increase the tourism VAT in last year’s Budget. The threat to businesses posed by escalating insurances costs is well documented and our members are also reporting significant pressure from rising local authority rates,” she said.
Ms Randles added that more must be done to tackle the costs that are stifling businesses.
“Tourism is a highly competitive business and these costs are making us less attractive as a destination. Decisive action is needed now to mitigate the impact this will have on tourism, especially the regions,” she stated.
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