InBus_Win09_1-55:InBusiness 1-61 11/12/2009 16:19 Page 48
FEATURE | Tourism Report
restaurants, especially in rural and scenic areas, Colm Carroll of Carroll’s Irish Gifts, another
are heavily dependent on tourism. With fewer veteran of the decline in visitor numbers. “I think
international and domestic visitors, there’s just no we had become a high-cost destination. Prices
local trade to fall back on.” have gone through the floor. Room rates have
One factor that makes tourism unusual is its come down. When tourists come here, they’re
seasonal nature. Those in the industry reap what very happy with the product, but that’s only
they’ve sown between spring and late autumn – when they come here.” There is always room for
with a festive blip for Christmas – and hope their improvement and if 2010 is to mean survival
cash reserves and overdrafts will keep them rather than wipeout, the industry and
going during the slack winter months. This government have to respond creatively.
spring will be particularly tough. The first opportunity is the budget, which will
“A lot of companies in the tourism industry shape the spending power of domestic tourists
have had awful problems getting working capital in a variety of ways, decide the stimulus business
support from the banks even though it’s a will receive, and influence the pattern of north-
Colm Carroll of Carroll’s Irish Gifts. seasonal business,” says McKeon. “Our banks south trade. Once those hurdles have been
still haven’t been fixed, and even when they are passed, there are other opportunities.
“IRELAND IS BASICALLY
credit won’t start flowing immediately. They’ll “The saviour for Dublin this year, from a
A BIG SHOP; WE NEED
rebuild their balance sheets first. Banks are tourism perspective, has been special events like
saying that they’re lending to good businesses, the U2 concerts and sporting events,” says
TO GET PEOPLE IN AND
but how do they define good? In tourism, there Carroll. “This is the way forward. The Convention
ALLOW THEM TO SPEND
are a lot of family businesses that are rock solid, Centre will be a huge boost to trade when it
but always require that overdraft for the first few opens next year. But the more events the better
THEIR MONEY.”
months of the year. Now it’s much harder and – how about an event on New Year’s Eve?
– COLM CARROLL
more expensive to get. As Michael Smurfit said, London and New York host huge events, but
working capital or equity is your blood.” very little happens in Dublin.”
concerned about the cost of doing business, cost The question of access also comes to the fore Another creative solution is to attract visitors
competitiveness and loss of business across the for the first time in years. Until recently, Ireland from emerging economies, particularly India,
border. “Nationally, we need to become more enjoyed cheap and plentiful inward flights. China and Japan. It makes sense for many long-
competitive. We lost it greatly in recent years,” Because of the expansion of low cost carriers, haul tourists to combine an Irish visit with a trip
admits McKeon. “When tourism is expensive, it’s the price advantage has given way to a level to the UK, but they currently have to face the
not just for the hell of it – it’s because companies playing field – and according to Tourism Ireland, bureaucracy of obtaining two entry visas for the
have an expensive cost base. When the costs are available seats to Ireland decreased by 14 per one trip. Next year may see progress on the
high, you have to charge high prices. When cent in summer, with a further 10 per cent set issue. “It was discussed at the Global Economic
prices are high, you’re uncompetitive – and for winter. Forum in Farmleigh,” confirms Niall Gibbons.
that’s what happened to us.” “The UK borders agency has left open the door
Hardly any section of the industry is immune. to negotiations with the Irish Government
Coach tours have been hit by a decline of 20 regarding a common visa for both countries.
per cent this year, on top of a 20 per cent hit the There’s now good momentum there.”
previous year. The accommodation sector is in To Adrian Cummins, continued promotion of
trouble – with new hotels closing up and down tourism cannot be sacrificed. “Tourism is a form
the land, John Power of the Irish Hotels of direct investment. The McCarthy Report
Federation has appealed for the strongest recommends that we reduce the marketing
possible governmental response. The spend for Ireland, but if we’re to get out of a
federation’s pre-budget submission described recession we need to increase that
2009 as a “disastrous” year, with the sector marketing spend.”
suffering a “crisis situation”. Industry insiders from Ryanair downwards are
vocal about the need to eliminate the €10
DOMESTIC DECLINE tourism tax charged to air passengers. “It’s a
The restaurant industry has been hit too, with Adrian Cummins, Chief Executive, Restaurant question of bums on seats,” explains Colm
revenue down by 30-40 per cent in some cases. Association of Ireland. Carroll. “The €10 tourist tax is like me charging
Adrian Cummins, Chief Executive of the someone for coming into my shop. And Ireland
Restaurant Association of Ireland, says that not IN GOOD SHAPE is basically a big shop; we need to get people in
only are visitors to Ireland down, domestic The good news is that the Irish tourism product and allow them to spend their money.”
tourism has declined. As Irish residents continue is in better shape than ever before. “I think the It is set to be an unusually tough winter for
to worry about money, they are travelling and product has improved dramatically from what it the Irish tourism industry, and all involved will
spending less within the country. “Some might have been even 12 months ago,” says be working hard to keep the shop door open.
48 InBusiness Winter 09
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