The Irish hotel industry is showing strong signs of recovery, with demand this year outstripping The Gathering in 2013.
A new report by Crowe Horwath Accountants shows a rapid rise in visitor numbers. The average occupancy is up to 66% from a low of 59% in 2009, with Dublin enjoying the highest occupancy rate at 76.3%.
The improved figures are being put down to a 14% surge in visitors from the US and Canada, who traditionally spend more and stay longer. The reduced VAT rate is also been cited as a factor in the recovery.
Nationally, the average room rate is up €2.77 to €77.49, while room sales are now at 79% of 2007 peak levels.
The survey finds that rising operating costs in areas such as payroll, food costs and property rates are key challenges facing hoteliers. However, 80% of respondents are anticipating a year-on-year increase in total revenue for 2014.
Aiden Murphy is a partner at Crowe Horwath, and spoke to Newstalk Breakfast about the findings:
