"As the world holds its breath in anticipation of the developments in Iraq, the Irish tourist industry is facing one of its most difficult periods ever," Jim Murphy, President, Irish Hotels Federation told over 400 delegates at the IHF's 65th Annual Conference in Galway today. "With the fear of travelling firmly rooted in the minds of many foreign tourists, particularly amongst Americans, the level of bookings for the forthcoming season has reduced to a trickle."

According to Mr. Murphy, with massive uncertainty facing the industry as a result of a complete deterioration in international bookings together with the increasing costs of doing business in Ireland, the Irish Hotels Federation is calling on the Irish Government to immediately implement short-term initiatives to give the hospitality industry the strength to survive through this and position it to reap its enormous long-term potential from which everybody in Ireland will benefit.

"The Federation is appealing to the Government to introduce a number of measures which will shoulder the blow that the sector will experience in the coming season. This is the third successive year of difficulties for Irish tourism, all due to occurrences outside our own control. We continue to be a major contributor to the Irish economy and all we seek is some relief from the crippling cost increases over which either central or local government have direct control," he says.

The IHF admits that there is no quick-fix solution to the problems faced by the industry but hopes that a mixture of measures could assist the hotel and guesthouse sector during the current uncertainty and forthcoming turbulent times:

· Defer the recent 1% increase in the rate of VAT for hotels and restaurants until 2004.
· Freeze local authority rates for hotels at the 2002 levels.
· Remove the 2% Government levy on insurance premiums.

He also urged hoteliers and guesthouse owners to concentrate on the factors necessary to lift the tourism sector out of its current three-year low. He maintained that the sector needs to make itself more resilient to setbacks by focussing on niche markets, repeat visitors and creating a superior tourism product.

"While the hotel industry will do its best to target new and repeat business for the coming season, the Government will have to step up its efforts with regard to keeping costs down and ensuring that Ireland's competitiveness is maintained not only for the hotel sector but for private enterprise as a whole".

Over 400 delegates from all over Ireland will attend the IHF's conference, which is being held at the Radisson SAS hotel in Galway. Speakers include the Minister for Arts, Sport and Tourism, John O'Donoghue TD; Mr Kurt Ritter, President and CEO Rezidor SAS Hospitality; Mr John Travers, Chairman, Fáilte Ireland, Michel Rosney owner Killeen House Hotel, Killarney and Mr Alex MacPhail, Founding Director of the Si Group.

The theme of this year's conference is "Time to Draw the Line" with the programme focussing on looking to the future for Irish tourism in the face of growing globally uncertainty.

For further information contact:
Siobhan Molloy / Niamh Boylan
Weber Shandwick FCC
Tel: 01 676 0168 or (086) 817 50 66 / 086 380 9191
Email: nboylan@webershandwick.com

Press Room Radisson Hotel, Galway 091-538 625