Irish hotels and guesthouses are more optimistic going into 2015 with 90 per cent saying they have a positive outlook for the next twelve months.
The latest hotel barometer from the Irish Hotels Federation (IHF) shows 86 per cent of hotels and guesthouses have increased their business this year, helped by a rise in visitor numbers. Overseas visitors up over 8 per cent this year (Jan-Nov) according the latest figures from the CSO.
The barometer shows 66 per cent of hoteliers have hired additional staff this year, while 86 per cent say the Government’s decision to retain the 9 per cent tourism VAT rate will assist them to take on further staff in 2015.
However, hoteliers say they continue to face a significant skills shortage in the sector with 83 per cent citing difficulties hiring trained workers to fill entry and craft level positions within their businesses over the last 12 months.
The barometer found 41 per cent of hoteliers were concerned about the viability of their business. This figure is down from 63 per cent a year ago.
IHF president Stephen McNally said Government funding for tourism marketing and product development has been cut back substantially.
“Our tourism bodies have been operating under very constrained budgets which puts the long-term sustainable growth of our industry at risk. “There is now a pressing need to ensure sufficient funding is allocated,” he said.
He said that while hotel revenues remain significantly below those achieved six years ago, increased confidence in the sector is feeding into greater levels of investment by hoteliers.
Some 86 per cent plan to increase investment in refurbishment and product development in 2015 while 77 per cent plan to increase their investment in marketing.