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HOTELIERS and guesthouse owners in Kerry and across the country are reporting a continued fall in business levels from the UK this summer according to the results of the latest quarterly barometer from the Irish Hotels Federation (IHF).

While business levels overall were up nationally across the summer months, with seven in ten hoteliers (71%) seeing an increase compared to this time last year, most (69%) reported a fall in business from Great Britain with over half (54%) saying Northern Ireland business levels had dropped too.

The results of the industry barometer echo the latest CSO figures which show that Brexit is already having a significant impact on Irish tourism. Visitor numbers from Britain have decreased by 7.1% for the first eight months, compared to the same period last year. The UK, Ireland’s largest source of inbound tourists, accounts for over 40% of all visitors, providing the widest regional and seasonal spread.

For now, strong performances by the US and domestic markets are helping to offset the significant fall-off in business from the UK. The majority (69%) of hoteliers reported an increase in US business this summer, while almost six in ten (57%) said domestic levels are up. Business levels from these markets look set to remain buoyant for the remainder of the year with many hoteliers (52%) saying advance bookings from the domestic market are up with promising increases from the US (43%) as well as Germany (26%) and France (19%). However, over half (56%) say future bookings from Northern Ireland are down, while nearly two thirds (65%) see a drop in advance bookings from Great Britain.

The general outlook for industry over the next 12 months remains positive, according to the survey, although hoteliers’ optimism has been dented. Most say the weakened value of sterling is already affecting their business and Patrick O’Donoghue, Chair of the IHF’s Kerry branch says the uncertainty around Brexit poses a real threat to the tourism industry, with regional tourism likely to be hit hardest. Tourism currently supports 11,000 jobs in Kerry and contributes some €508m to the local economy annually.

“Many of the consequences of Brexit are largely outside our control, so it is imperative that we mitigate the risks and potential damage where we can. We are calling on the Government to take the necessary steps to protect Irish tourism and to avoid any changes in policy that would weaken our sector’s ability to deal with the risks it faces due to Brexit. The 9% VAT rate for tourism, in particular, continues to deliver enormous benefits to the exchequer by making us more attractive as a tourism destination,” he said.

Mr O’Donoghue added: “The overall rate of tourism growth is also continuing to slowdown, which is worrying. The cuts to marketing funding and development in the recessionary years should also be reversed urgently so we can entice more visitors from new and existing markets and particularly to the regions. Time and time again, Irish tourism has shown itself to be an excellent investment for every euro spent in destination marketing,” he added. Many (64%) hoteliers plan to increase their own marketing spend as they increase their efforts to grow their business both at home and abroad.

The tourism industry as a whole supports approximately 230,000 jobs - equivalent to 11% of total employment in Ireland, making it the country’s largest indigenous industry.