Devastation' In Tourism Industry: Fine Gael

Empty beaches and worse - empty hotels - are leaving hoteliers distraught.

Long, empty beaches, such as this one at Five Fingers Strand in Co Donegal have underlined a grim report of the summer season so far as the industry falls into "crisis", according to opposition party Fine Gael.

Fine Gael Tourism Spokesperson, Olivia Mitchell claimed today that new figures highlight the "extent of the crisis" facing the tourism industry with 50% of hotels experiencing difficulty in meeting VAT/PAYE payments on schedule and urban hotels operating at a third capacity.

Ms Mitchell also said that three-quarters of hotels still using their winter season overdrafts to cover the current dip in custom.

"There seems to be little appreciation at Government level of the scale of devastation that has beset the tourism industry. The industry is in crisis," the Fine Gael member said.

Ms Mitchell added that figures show over 40% of hotels have not yet fully paid 2008 rates; June figures for Galway show occupancy down 7.6% on last year despite success of Volvo Ocean Race, while the anticipated 40% increase in Irish people holidaying at home is not materialising.

Ms Mitchell said: "An immediate increase in occupancy is desperately needed if bank and other commitments are to be met.

"A particular concern for hoteliers is the perceived unfairness of the rating system. One Cork hotelier reported a bill of €10,000 in rates per week, a sum that must be paid before a single one of the 250 wage packets in his hotel can be filled.

"A simple non-discriminating but effective way to reduce costs for all businesses is to use the 'Social Partnership money' to pay a portion of the rates bills."

Ms Mitchell said that having listened to the stories of hoteliers and others in the industry, she was convinced that without positive action to help the industry, much of its infrastructure and expertise would disappear.

(DW/BMcC)