New research from Fáilte Ireland has found that 53% of tourism businesses have had fewer customers this summer, compared to last summer.
The latest Fáilte Ireland Tourism Barometer, which took responses from over 1,000 operators across the country, found that 24% of businesses have had more customers this summer, compared to last summer, while 23% have had the same level thereof.
‘Disappointing Summer’
Fáilte Ireland noted that a number of factors have combined to give a ‘disappointing summer’, including bad weather (cited by 51% as a concern), people lacking disposable income (51%), the cost of tourist accommodation (46%), and a lack of tourist accommodation (43%).
The research indicates that the food-and-drink sector has struggled the most, with 68% receiving fewer customers this summer than last.
Outlook
Nineteen per cent (19%) of operators expect business during the remainder of the year to be up on the same period last year, and 31% expect the same level thereof.
However, half (50%) expect it to be down.
Rest Of The Year
The barometer predicts that all regions of Ireland and all markets are expected to be down.
The May barometer showed that Dublin was not experiencing slow business like the rest of the country, but during the summer, Dublin also struggled to match its visitor levels from last year.
Restaurants
Fáilte Ireland warned that there is little positivity reported by the restaurant sector, as businesses strive for their own survival amid rising costs and declining customer numbers.
The barometer found that 73% of restaurants were down on customers this summer.
Over half (53%) of restaurants note that there is ‘nothing to be positive about’ – by far the highest proportion of any sector to say this.
Pubs And Bars
According to the research, 66% of pubs and bars had fewer customers this summer than last year, and 82% reported profitability to be down.
Rising payroll costs (79%) were cited as the main reason for the struggling performances in this sector.
Additionally, the cost of insurance was cited as a concern by 57% of businesses, which was the highest proportion of any sector to say this.
Hotels
Fáilte Ireland noted in the report that the hotel sector has consistently been one of the industry’s best performing during recent years.
However, Fáilte Ireland noted that the ‘tide has turned’, and 57% of hotels were down on visitors for the summer.
Rising operating costs continue to top concerns, but other factors affected performances this summer, including people lacking disposable income (65% cite this as a concern), Irish holidaymakers going abroad (55%), and the weather (54%).
