1st Ld Writethru: 2016 record year for Irish tourism: report

The year 2016 was a record year for the Irish tourism industry, which was worth over 8 billion euros, according to the Irish Tourist Industry Confederation (ITIC) on Thursday.

In a year-end review, the ITIC said Ireland generated an estimated 6.2 billion euros from overseas tourism in 2016.

Spending by international visitors in Ireland grew by up to 9 percent to reach 4.7 billion euros, while Irish air and sea carriers earned an estimated 1.5 billion euros in fares paid by visitors to Ireland.

Domestic tourism revenue is expected to post an increase of at least 1.5 percent to 1.75 billion euros, with a further 300 million euros earned from Northern Ireland visitors, according to the ITIC.

In volume terms, 2016 was another record year for the number of visitors with an estimate 8.8 million staying visitors, up 10 percent from a year ago, it said.

It added that 8.5 million visitors arrived directly into Irish air and sea ports, with up to a further 300,000 arriving via Northern Ireland.

The ITIC said holiday visitors grew by an impressive 10 percent to more than 4.4 million, while business visitors and those coming to visit friends and relatives grew by up to 12 percent.

All major source markets exceeded expectations producing double digit growth in 2016, with Ireland gaining further share of outbound traffic in several key markets, the report said.

Indicators from businesses across the country suggest that the boost in demand was experienced in most areas with the western seaboard gaining an increased share of tourism traffic and expenditure, according to the ITIC.

The ITIC said the continued growth in tourism is testament to the quality and competitiveness of the Irish tourism industry.

Economic conditions in source markets, expanded airline services, the strength of the U.S. dollar and the sterling (prior to the Brexit vote) against the euro, coupled with effective destination marketing, combined to drive growth, it said.

The Irish government decision to maintain the 9-percent VAT rate on tourism services, and the suspension of the Air Travel Tax, continued to boost Ireland's competitiveness on the back of efficiencies and better value offerings from tourism businesses, it added.

For next year, the ITIC predicted the industry will be facing a number of challenges, including a lack of hotel accommodation in Dublin and Brexit.

In its outlook report for 2017, the ITIC said competitiveness will be a key challenge for the industry in 2017.

The prospect of currency shifts makes the United Kingdom a more affordable destination, as businesses in Ireland cope with increasing cost pressures and a diminished government investment in destination marketing.

Meanwhile, capacity constraints are beginning to impact the ability to cope with demand, in specific locations and times of the year, it said.

The shortage of hotel accommodation in Dublin, as the top gateway and urban destination, is limiting the ability to fulfil demand, according to the ITIC.

It also said uncertainty governed by geopolitical and economic factors will undoubtedly impact on demand over the coming year, not least in relation to Brexit and the British market.

Despite challenges ahead, the ITIC believes the tourism industry can grow by a further 5 percent in overseas visitors and 7 percent in export revenue in 2017. Endit