Irish tourism is facing increased competition from its nearest rivals, Mr Brendan Leahy, chief executive of the Irish Tourist Industry Confederation has warned.
Scotland and England are gearing up for an all-out marketing campaign and have already signalled increased marketing resources for the early part of the coming year, Mr Leahy said.
"Already signs are clear that competition will be even more aggressive next year."
The ITIC recovery programme for 2002 which will be presented to the Government in the new year will highlight the need for extra marketing funding to stave off competition in the market place. Funding of £26 million through Tourism Ireland and Bord Fβilte which Tourism Minister, Dr McDaid, has indicated, will not be enough, Mr Leahy said.
"That is the level of funding which would have been required to fund destination marketing in a normal year, and next year certainly is not going to be a normal year," Mr Leahy said.
US business cannot be entirely replaced, and some sectors of the industry were worse affected than others, he said. "The 10 per cent drop in the overall national figure disguises a number of much more serious downturns in business performance right across the transport and hospitality sectors," Mr Leahy said. In fact losses of up to 50 per cent in business were being recorded. "I know there are many operators who would be delighted if they were facing only a 10 per cent decline."
Losses were particularly heavy in the higher star hotels and guesthouses. But the tourist industry which contributed £1 billion to the national exchequer last year was not looking for "hand-outs" when it asked for support, Mr Leahy said. Every pound invested brought an impressive return. The UK market was the largest and closest and it represented the best market in the short term, he added. Mr Leahy was addressing the Kerry branch of the Irish Hotels Federation in Killarney.