Oireachtas Joint and Select Committees

Wednesday, 15 June 2022

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

Rising Cost of Tourist Accommodation: Discussion

Mr. Paul Kelly:

It is important to note that overseas visitors plan their trips months in advance. As has been pointed out, we have an awful lot of business that was planned years in advance because 2020 and 2021 business has rolled over. Generally, it is rolling over at the rates agreed then. It is important to recognise this. Those rates were agreed with those businesses well before significant costs increase were introduced. Ms Campbell and Mr. Fenn spoke about 80% of June business being booked. A good chunk of this was booked in 2019 for 2020 at prices agreed long before. Businesses have to absorb all of the costs not only on the rooms they sell today but on all of the rooms they have sold. This is a factor.

The impact of the issue with the last available rooms on international visitors is much less than its impact on someone coming up for a match because the team just qualified for the next round of the all-Ireland championship. The vast majority of international business is booked well in advance. Visitors look at the rates and decide whether or not they are willing to pay it. We have one of the strongest recoveries in tourism.

The industry needs to be given great credit for its efforts in the context of the stresses and strains it has been under to deliver this recovery and to bring back as much employment as quickly as it can. That is across the whole tourism industry. We have this strong recovery and it is being driven by people who are happy and who have felt they have been getting value for the prices being paid. It is important we retain that value and those prices, because what people pay and what they see when they go to book something is what is going to be the ultimate perception of value. People are now looking at where they are going to go in the fourth quarter of this year. Internationally, that is what is being looked at now. There is value there in that regard. It is important to note that the year is not the three months of the summer. It is the full 12 months, and businesses have to operate-----

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