U.S. Irish Tourist Slump

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U.S. Irish Tourist Slump

July 16, 2008

By Cahir O’Doherty

AS the dollar dropped to a record low against the euro this week, the Irish press is reporting that the number of wealthy U.S. tourists traveling to Ireland has dropped by almost 15%, and that those who do travel are spending less.

The strong euro, the rising price of oil and a downturn in the American economy are being blamed for the latest figures. In response to the slowdown, a significant number of Irish hotels have begun advertising special offers to attract reluctant U.S. customers.

The chairman of the Irish Tourist Industry Confederation, Dick Bourke told the press this week that 2008 has been a “mixed” year to date.

“Ireland’s two main visitor markets, the U.S. and the U.K., are both very flat this year,” he said. “Although overall visitor numbers are relatively the same as 2007, spending is down. We find that tourists aren’t staying as long as they would previously and they aren’t spending as much when they get here.”

John Power of the Irish Hotel Federation (IHF) told the press that occupancy rates in Irish hotels has dropped by about 4% from last year. “Five-star hotels have been experiencing fewer overseas visitors because of the strong euro. The dollar is worth 16% less than it was last year,” he said.

The lack of American visitors has many hotels expecting to lay off staff by the end of the year, according to a report published this week by the Irish tourism body, Failte Ireland.

In its report, Tourism Barometer 2008, Failte Ireland found that almost a third of Irish hotels have been forced to cut back on full-time staff as they struggled with dropping occupancy levels and an unexpected slump in room rates. Most hotels are pessimistic about the next few months.

“The world energy crisis, turmoil in financial markets, and the unfavorable exchange rates has combined to create a most difficult trading environment,” the report said.

Bourke said he expects the remainder of 2008 to follow the same pattern, and anticipates that there will be great value deals for U.S. travelers in Ireland not usually available at this time of year.

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