Once described as the Celtic Tiger due to its rapid economic growth, Ireland has fallen on hard times. A massive fourteen percent contraction in real GDP led to one of the worst recessions in decades. While every sector of the economy was affected, none suffered worse than travel and tourism.
In 2009, the number of internal visitors fell to its lowest level since 9/11. A thirteen percent decline in guests in the fourth quarter of 2009 was the worst in more than a decade. Why did it happen? Obviously, the global recession had a lot to do with it. Then there is the fact that Ireland relies on tourists from the UK for more than half of their travel revenue. And unfortunately, the UK was one of the last of the European countries to emerge from recession.
As a result, UK travel to the Emerald Isle fell by an astonishing 21 percent in 2009. And in spite of a slew of special offers and room rate discounts, travel has been slow to recover in the first half of 2010. The truth is that unemployment and debt are still growing in the UK; and even if there is Something about Dublin thats magical , no one is seeing it.
The one ray of hope for the industry is the foundering Euro. Yes, the Euro is sinking like a stone and many travel industry insiders believe that attractive exchange rates may encourage increased travel to Ireland. Some even believe that a good summer session may help save a dreadful year.
What do we think? While exchange rates for the dollar and the pound against the Euro are appealing, only modest travel increases are anticipated.