Preliminary estimates for 2002 would indicate that overseas visitor figures climbed slightly, by 2% on 2001, however corresponding hotel room nights decreased by some 3% for the same period. According to John Power, Chief Executive of the Irish Hotels Federation (IHF), commenting at the publication of the IHF's 2002 Annual Report and Review, continued global economic unrest is to blame for visitor numbers remaining low when compared with figures from just two years ago. With over 145,000 people now employed in tourism, the sector is facing a challenging 2003 given the current international economic conditions and protection of these employees positions is paramount, the IHF maintains.

On a positive note, the estimate show figures indicate an increase in home holidays last year by 12-15%.

"Last year saw an estimated 6 million visitors to Ireland but the positive trend of domestic market holidaying at home and taking short breaks assisted balanced out what could have been a difficult year for the sector," John Power stated.

Mr Power stated that following 2001's disappointing figures, the industry had hoped for a substantial improvement in 2002, but that an unsettled global economy had stalled the industry's recovery. It resulted in a reduction in visitor numbers especially from the key North American market, which appears to be down 10% to 815,000. The IHF also cite the 20% reduction in direct airline routes to Ireland from North America as a contributory factor in the 50,000 fewer arrivals from this particularly lucrative market in 2002. Thankfully this situation has been rectified for 2003 with Aer Lingus re launching the Baltimore to Shannon/Dublin route and US airways introducing new routes from Philadelphia to Shannon and Dublin.

On a more positive note, British arrivals rose by 9% to 3.7 million and mainland Europe arrivals were up by 3% to 1.4 million. This rise in figures from Britain and Europe could be attributed in part to a recovery in the early part of the season from the 2001 low levels caused by the impact of foot and mouth. The availability of good low fare air and sea access on these routes were also major contributors.

According to Mr Power, there are now 851 hotels with 42,869 bedrooms and 479 guesthouses with over 5,300 rooms. The number of people employed in hotels and guesthouses in 2002 remained at 57,000.

"While the performance from the North American market was disappointing in 2002, the domestic, British and European tourism markets showed varying degrees of improvement on the previous year, which is an encouraging sign for the industry. However, early market indicators for 2003 are worrying, particularly the recent major slow down of US bookings, due to the threat of war."

Mr Power stated that 2002 was another challenging year for the industry during which the Federation's focus was again directed towards industry recovery. The €3.5m. additional marketing funding made available by Mr John O'Donoghue, Minister for Arts, Sport and Tourism in the later part of the year was a significant contributor to the performance.

"The Bord Fáilte domestic marketing campaign with active participation by the hotel and guesthouse sector in particular were focussed on promoting very attractive offers in the Irish market. This proved productive and successful given the increase in domestic business and the increase in home holidays by up to 15%. We would hope that funding for similar campaigns in 2003 will be undertaken," Mr Power concludes.

• 6 million visitors to Ireland in 2002 (5.9 million in 2001) - 2% increase on 2001
• €3.1 billion foreign exchange earnings in 2002 - compared with €3billion foreign exchange earnings in 2001.
• Domestic holiday trips increased by 12-15% to 8.25m in 2002.
• Total tourism revenue in 2002 = approximately €5.6 billion.
• 150,000 people employed in tourism in Ireland.
• 57,000 people employed in the hotel and guesthouse sector - largest employer in
  the tourism sector
• The most dramatic fall in tourist visitors last year was from North America with 820,000 visitors - a decrease of 10% from the previous year (910,000 in 2001).
• 851 hotels with 42,869 rooms (27,000 in 1996)
• 479 guesthouses with over 5,300 rooms (3,802 in 1996)
• Total of 48,000 hotel and guesthouse bedrooms in Ireland.
• 2% of all hotels are five star, 9% are four star 36% are three star, 23% are two star and 8% are one star.
• 30% of hotel bedrooms and 20% of guesthouses bedrooms are located in Dublin.
  

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