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Donegal hospitality industry's
worst year
10.03.10
THE Donegal hospitality
industry suffered its worst year in a decade last
year with room occupancy collapsing by half, new
figures show.
Tourism revenue collapsed by 17% and room occupancy
in the county was 46%, even lower than the national
average last year of 55%.
The Donegal chairman of the Irish Hotels Federation,
Michael Naughton, told the organisation's annual
dinner dance that Donegal's biggest problem was the
UK market. That was down 16% last year, a further
drop on the 10% fall in 2008. |
"We up here in Donegal
cannot afford to have a further decline in the UK
market as its now at the lowest number since 1997.
Last year 70% of our bed nights were made up from
the island or Ireland, so looking forward, we cannot
depend solely on the domestic market to fill our
rooms," said Mr Naughton.
Mr Naughton addressed the |
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IHF annual dinner dance
in the Mill Park Hotel, Donegal Town, on Monday
night.
He said some of the big problems facing the hotel
industry were the cost of overheads including VAT
rates, water and rate charges and ESB charges which,
he said, were the second highest in Europe.
"Up here in Donegal, we are competing with our
neighbours in Northern Ireland, who have labour
costs of between 30% and 32 %, compared to us here
in Donegal which is averaging about 41%. And then of
course there are the banks, the people that have all
the answers now and know where we made all our
mistakes.
"It’s a pity these mistakes weren’t noticed in 2004.
We also have unfair competition from otherwise
unviable hotels being supported by the banks and
then selling rooms at ridiculously low prices,"
added Mr Naughton.
He told the local gathering that Donegal had some of
the best scenery in the world including Slieve
League, the Inishowen 100 or Donegal Bay.
He said the Donegal branch of the IHF had now
secured funding of €200,000 from Failte Ireland,
Donegal County Council and the hotels in Donegal for
a TV advertising campaign over an eight-week period.
It has also organised a big showcase in Temple Bar,
Dublin, for later this summer.
In a rallying call to the people of the county, Mr
Naughton added: "So I ask you, the people of
Donegal, to start spreading the word with your
family and friends in the county. We want the whole
island to see that we are different up here." |
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