Hoteliers concerned about Brexit

HOTEL and guesthouse owners in Mayo are concerned about the impact that Brexit will have on their business over the next 12 months, according to the latest quarterly barometer from the Irish Hotels Federation (IHF).

The UK is Ireland’s largest source of inbound tourists, accounting for over 40% of overseas visitors into the country. The economic uncertainty surrounding the UK’s relationship with the EU has fuelled concerns amongst 95% of hoteliers nationally, highlighting the ongoing risks to Mayo tourism from external events.

While concerns about the impact of Brexit loom, results show the tourism industry has performed strongly so far in 2016. Some nine of 10 hoteliers (90%) report that business levels are up compared to the same period last year, with overseas visitor numbers up 14% year to date while British visitor numbers are up 16%. Of those hotels catering for corporate meetings and business events, 60% are seeing an increase in this area of their business compared with last year.

Meanwhile, the recovery in the Irish economy and improvement in consumer sentiment is contributing to growth in the sector. Nationally, two out of three (66%) hoteliers are seeing an increase in homegrown business with an uplift in consumer confidence leading to more people taking holidays and short breaks at home. This growth is vital for local tourism businesses relying on the domestic market, which accounts for the majority of business for many premises.

Micheal Lennon, chair of the Mayo branch of the IHF, noted that tourism now supports 5,200 jobs in Mayo and contributes some €175 million to the local economy annually. He cautioned, however, that the continued recovery in the sector cannot be taken for granted and that the local tourism industry remained vulnerable to external economic shocks beyond its control, such as the UK decision to leave the EU.

He stated: “The concerns expressed by Mayo hoteliers following the UK’s referendum result reflect the significant risks posed to the sector, with many hotels and guesthouses still in recovery mode. This comes at a time when the increasing cost of doing business in Ireland already poses a serious challenge for tourism businesses.

“While it is too early to predict the full effect that the decision will have on Mayo tourism, there can be no room for complacency, particularly given the potential impact on visitors from Northern Ireland, especially families, and from the rest of the UK as well as on business levels within the domestic market.”

Mr. Lennon added that the recovery in Mayo tourism continues to be underpinned by a number of important measures such as the 9% tourism VAT rate. The zero rate travel tax and support for improved air access and connectivity have also played a major role. However, he also highlighted that nine of the 16 scheduled routes into Ireland West Airport Knock are from the UK, underlining its dependency on the UK market.