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Challenges remain for hotels following 'unprecedented upheavals'

Hotels
/ 7th March 2023 /
George Morahan

The president of the Irish Hotels Federation (IHF) has said that a number of challenges still remain for the tourism industry following the "unprecedented upheavals" over the past three years.

Speaking at the IHF annual conference in Killarney, Denyse Campbell said that global economy uncertainty presented obstacles to hoteliers, particularly around business costs, inflation, rising interest rates and the cost-of-living crisis in overseas markets.

"Very significant headwinds" in Britain are of particular concern to hoteliers and the wider tourism industry, considering that the UK is traditionally Ireland's largest source of overseas visitors, with forward bookings affected.

Recents industry research carried out by the IHF shows that 60% of hoteliers report that forward bookings from Britain remain down in pre-Covid levels. The prospects for tourism from North America are brighter but Europe also presents difficulty.

Campbell said that the last six months of 2022 had seen a welcome uplift in tourism activity, and that hoteliers remain focused on building on the recovery, with 54% of hotels and guesthouses planning to increase employment levels this year.

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“At the heart of every successful hotel and guesthouse are its people, and supporting and developing them is key to our long-term success. We are encouraging people of all ages to consider a career in the hotel sector," she continued.

Hotels
54% of hotels and guesthouses looking to increase employment over the coming year.

"There are an enormous variety of career paths and training opportunities that are constantly evolving in our sector. It is an ideal time given the wide range of exciting options available for people at every stage of their working lives.”

More than 250,000 people are now employed in the tourism industry, including 60,000 by 900 hotels and guesthouses, following a surge in hiring following the permanent lifting of Covid restrictions last year.

A further 85% of hotels are planning to invest in refurbishment and additional capital expenditure over the coming year, while 67% are planning to invest in sustainability initiatives, and 25% are actively exploring options for potential investment in this area.

Key priorities include renewable energy and heating, energy efficiency, retrofitting of buildings, waste reduction and water conservation.

“Needless to say, our industry has been through an exceptionally difficult period, but we are now beginning to see a cautious optimism for tourism as hotels look to invest in their businesses and product development this year with a particular emphasis on investing in our people, sustainability and business development," Campbell concluded.

Photo: (l-r) Denyse Campbell and IHF chief executive Tim Fenn at the Irish Hotels Federations 2023 Annual Conference.

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