Provisional tourism figures for 2002, which show an increase in visitor numbers of about two per cent, mask a "continuing loss of the high-spending, long-stay visitor" to the regions beyond Dublin, according to the Irish Tourist Industry Confederation.
Although the overall numbers of visitors are rising again towards the record levels of 2000, when the State attracted 5.9 million foreign tourists, those who are coming are remaining largely on the east coast and are staying for short breaks.
This has an impact on the amount of money spent by visitors, with some tour operators in the regions, particularly coach providers, seeing earnings drop.
While the British and home segment of the market have performed strongly, these two areas should not be confused with the high-spending, long-staying Americans or even the environment-conscious Germans and Italians, according to tourism bodies.
Hotels and visitor attractions in the west and south, which depend on the North American market more than others, saw US visitor numbers decline by between 25 and 30 per cent in 2001. In 2002 these are expected to be followed by a further drop of 10 per cent, a trend which separates such places as Killarney, Co Kerry, and Clifden, Co Mayo, from Dublin's possible return to good years.
The situation is causing particular difficulty for coach hire companies, which have been hit by the drop in visitor numbers, the imposition of VAT increases, the rise in diesel prices and changes in the capital tax allowance system which make it more difficult to renew their fleets.
Commenting on the situation yesterday, the Minister for Tourism, Mr O'Donoghue, said that while "North American visitor numbers are down, the estimated results show that Ireland is holding its own in Continental Europe and expanding in our largest tourism market, Great Britain".
He said direct North Atlantic access was down by more than a fifth over the previous year, "posing a particular problem during the summer for tour operators" as did a late booking trend. He said late booking would probably continue next year, although he suggested "the market is expected to improve somewhat".
While the tourist industry was broadly in agreement with the Minister, it said that domestic inflation was hitting the tourist industry by making Ireland an expensive destination in the euro-zone.
According to Mr Brendan Leahy, chief executive of the Irish Tourist Industry Confederation, competitiveness is an issue which the industry has to solve.
Inflation since 1996 has been in the order of seven to eight per cent in Germany, but in the Republic it has been about 21 per cent.
Government funding for international marketing will increase and will focus on attracting more tourists from key markets. In the longer term, the confederation said it is hoping that issues such as competitiveness, regional distribution and marketing will be addressed.
