Oireachtas Joint and Select Committees

Wednesday, 1 June 2022

Joint Committee on Tourism, Culture, Arts, Sport And Media

Departmental Priorities and Legislation: Discussion

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party) | Oireachtas source

I thank the Deputy, who has raised a significant, highly topical and current issue. As the committee is aware, there are significant cost inflation pressures for businesses, including tourism, at present but nonetheless, as the Deputy has said, Ireland has well-known attractions, many of which are in the Deputy’s own constituency. I think of the beautiful Carlingford which I go to myself and other places which again and again bring visitors back. It is very important that businesses consider both their pricing levels and the added value and extras that they offer to help keep that reputation and that overall good-value proposition and competitiveness. It is important that we attract back customers time and again and that their experience is one where they want to return.

On the hotel pricing issue, the 2022 rebound in the Irish tourism sector is very strong and stronger than expectations. It could actually reach two thirds of the 2019 levels. This has been helped by that stronger than anticipated recovery in air connectivity, as the 2022 peak summer access will be back to 90% of 2019 levels.

April occupancy levels in Dublin hotels reached over 83% and the expectation is that the equivalent figure for May will be 90% or more. Dublin is currently seeing at least 10% higher occupancy than cities such as London, Rome or Amsterdam. No one thought that would happen so soon. There is strong customer demand on the ground with a great deal of deferred travel, which is the key part here. There is also the wedding activity, which is putting a real squeeze on available accommodation. Other key domestic factors are also back in play now as we, thankfully, see the resumption of large concerts and matches.

We are seeing increasing numbers of those anecdotal reports of excessively high prices in the hotel sector and the Deputy has given examples there in this regard. Whether these reports are reflective of the general market or of the prices that are being sought online for remaining rooms is somewhat moot because, as the Deputy has noted, such reports can have a really negative impact on our reputation as a visitor destination.

As I have said, I am very aware that businesses, including tourism businesses, are facing significant cost pressures due to inflation and other economic factors and the hotel-----

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