Monday, 22nd February 1999
1998 RECORD YEAR FOR TOURISM
Employment Rises By 20% Since 1996
1998 was a record year for tourism according to the Irish Hotels Federation, President Bill Power, launching the Federations Annual Report today at its AGM in Bundoran, Co. Donegal.
"Preliminary estimates show that revenue from overseas visitors reached an all time high of £2.3 billion in 1998 - a 9% increase on the previous year", said Mr. Power. "Add that to the Domestic Tourism contribution of almost £800 million and the total industry has a turnover of £3.1 billion."
According to Mr. Power, there has been a 30% increase in the number of rooms available in the country since 1996. Private investment in developing the industry has been well ahead of actual demand from tourists and this has resulted in increased competition in the accommodation sector.
"There are now over 820 hotels with 35,900 bedrooms in the Republic of Ireland, and 443 guesthouses with 4,700 rooms. This is an increase of almost 30% over the last three years. In 1998 alone 75 new hotels and 47 new guesthouses opened in Ireland", says Mr. Power. "These rapid increases are causing concern with all accommodation providers, the rise in competition has meant that margins have remained literally static for a number of years, while costs such as salaries and supplies have increased."
Tourism is set to overtake agriculture as the country's largest employer and the figures for 1998 confirm the pattern predicted that an additional 40,000 jobs will be created in the sector by the Year 2002. Employment numbers now exceed 124,000 people and the exchequer benefits to almost £1.5 billion from tourism. The report states that total employment in the hotel & guesthouse sector has risen by 20% since 1996.
"Employment in hotels and guesthouses has increased significantly and is now in excess of 50,000 people. 75% are full time positions. Most of the new jobs being created in the tourism industry are in the hotel and guesthouse sector, the growth of which keeps apace with national employment growth, standing at just less than 5%", continues Mr. Power.
In relation to visitor numbers, the report shows that overseas visitors increased by 10% to 5.5 million in 1998. British visitors remained the strongest market, increasing by 12% to 3.2 million. The number of North American visitors increased to 840,000 - an increase of 8%, with significant growth in business travel and promotable segments.
Mr. Power maintains that despite an economic slowdown in the UK the outlook for increased numbers of visitors to Ireland is very positive.
"Total UK visitor numbers are expected to grow to 3.5 million in 1998 and with the improvement of the economy on mainland Europe and the advent of the euro, which will eliminate currency fluctuations, 1999 European targets look set to show a 4% growth", he continues.
Visitor Numbers & Projected Numbers
|
MARKET |
1998 |
FORECAST 1999 |
|
|---|---|---|---|
| Actual | Increase | ||
| Britain | 3.2m | 12% | Growth of 8% |
| Mainland Europe | 1.2m | 5% | Growth of 4% |
| North America | 0.840m | 8% | Growth of 7% |
| Long-Haul | 0.213m | Little Change | Little growth prospect in 1999 |
The annual report is one of the key documents produced by the Federation and has been circulated to all IHF members and other tourism and related industry businesses for more than 20 years. The 1998 edition, sponsored by Bank of Ireland, features a distinct new look, reflecting the many activities of the Federation during the last year and a host of interesting, updated statistics on the industry.
FOR FURTHER INFORMATION:
Siobhan Molloy/Ciara Sweeney
Tel: (086) 817 50 66 or (086) 8262280.