Overall trends in tourism to Ireland and Dublin
Coinciding with the remarkable performance of the Irish economy, the tourism
sector has shown very strong growth in recent years. In Table 8.4A we present
an analysis of the overall level of visitors to Ireland and Dublin over the
period 1994-1998.
Table 8.4A Developments in Tourism Numbers to Ireland and Dublin
1994-1998 (000's)
Market 1994 1995 1996 1997 1998 Average annual growth -1994-98 -% Ireland
Total overseas 3,679 4,231 4,682 5,007 5,534 10.7
Northern Ireland 630 587 607 580 530 -4.2
Domestic trips 7,244 6,924 6,170 6,850 6,934 -1.1
Dublin
Total visits to Dublin* 3,007 3,332 3,470 3,685 4,095 8.0
Source: Bord Failte
* Overseas, Northern Ireland and domestic trips.
According to the figures in Table 8.4A total overseas visits to Ireland reached
5.53 million in 1998, representing an increase of 10.5 per cent on the 1997
level. Overall visits to Ireland have grown at an average annual rate of 10.7
per cent over the period 1994-1998. There were 4.1 million visits to Dublin
in 1998, up 11.1 per cent on 1997. The growth in visits to the Dublin region
has averaged 8 per cent over the period 1994-1998. In Table 8.4B below we analyse
the revenues generated from tourism to Ireland and the Dublin region over the
last five years. Total revenues from overseas visits reached £1.7 billion in
1998, while revenues from Northern Ireland tourism and domestic trips came to
£97.1 million and £751 million respectively in 1998. £627.8 million in revenues
were generated from 1
1 Page 2 3
visits (overseas, Northern Ireland and domestic trips) to Dublin in 1998. Revenues
from tourism in Dublin increased by 11 per cent compared with their level in
1997. The Dublin region accounts for around one quarter of the total revenues
generated from overseas, Northern Ireland and domestic tourism combined.
Table 8.4B Tourism Revenue from Visits to Ireland and Dublin
1994-1998 (£ million)
1994 1995 1996 1997 1998
Total overseas 1114.1 1286.4 1451.0 1588.6 1704.2
Northern Ireland 46.1 82.6 85.0 101.9 97.1
Domestic tourism 657.1 610.9 578.8 670.8 751.0
Visits to Dublin 446.7 519.4 523.3 565.6 627.8
Dublin as % of total of above markets 24.6 26.2 24.7 24.0 24.6
Source: Bord Failte
Profile of visitors to Dublin
In Table 8.4C we present an analysis of the origin of visitors to Dublin
over the period 1994-1998. The figures show that there were 4.1 million visits
to Dublin in 1998, of which 2.9 million were overseas visitors, 123, 000 were
from Northern Ireland and 1.04 million were domestic trips. Overseas visitors
accounted for the largest proportion (71.6 per cent) of total visits. Almost
37 per cent of visitors came from Britain, while 18 per cent came from mainland
Europe and 12. 9 per cent from North America.
Table 8.4C Origin of Visitors to Dublin
1994-1998 (000's)
Market 1994 1995 1996 1997 1998
Britain 807 956 1111 1313 1507
Mainland Europe 541 636 645 652 736
North America 317 399 475 480 530
Other Overseas 103 143 129 141 160
Total Overseas 1768 2134 2360 2586 2933
Northern Ireland 110 130 140 110 123
Domestic Trips 1129 1068 970 989 1039 2
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Total 3007 3332 3470 3685 4095
Source: Bord Failte
An analysis of the revenues generated from visits to Dublin by market over
the last five years is presented in Table 8.4D. The figures show that £525.
2 million in revenues were generated from visits to Dublin during 1998, up from
£474.5 million in 1997. The largest proportion of overseas revenues came from
the British market. British visitors spent £211.2 million in Dublin in 1998,
or 40 per cent of the total overseas revenues. Mainland Europeans constituted
the second largest market, spending £171. 7 million in the Dublin region in
1998, while the North American market accounted for £93.1 million in revenues.
Northern Ireland and domestic tourism together accounted for 16.3% of overall
revenues generated during 1998.
Table 8.4D Revenues generated from visits to Dublin by market -1994-1998
(£ million)
Market 1994 1995 1996 1997 1998
Britain 99.5 118.3 140.8 179.9 211.2
Mainland Europe 145.3 169.9 162.6 166.1 171.7
North America 62.6 82.9 94.2 94.3 93.1
Other Overseas 23.4 47.4 43.1 34.2 49.2
Total Overseas 330.8 418.5 440.7 474.5 525.2
Northern Ireland 14.0 15.4 16.2 14.1 26.5
Domestic Trips 101.9 85.5 66.3 77.0 76.1
Total from all visits 446.7 519.4 523.2 565.6 627.8
Source: Bord Failte
It is useful to examine the contribution of different markets to tourism
revenues in terms of the average spend per visitor in the Dublin region. In
Table 8.4E we present an analysis of the average spend per visit over the period
1994-1998 for visitors to Dublin from overseas markets, as well as from Northern
Ireland and domestic trips. There is a considerable variation in the average
spend depending on the origin of visitors. Of the overseas market, visitors
from Britain had the lowest average spend in 1998 (£ 140.1 per visit), while
visitors from other regions outside Europe and North America had the highest
average spend (£ 307.5 per person). Overseas visitors overall spent on average
£179.1 per person. Average revenue from visitors from Northern Ireland reached
£215.4 per person in 1998, while domestic trips yielded £73.2 per visit on average.
A notable feature of the overall overseas market is that the average spend has
fallen since 1994. Britain and the non-Europe/ North America markets were the
only areas to show an increase in yield over the period 1994-1998.
Table 8.4E Average spend per visitor 1 to the Dublin region by market -
1994-1998 (£)
Market 1994 1995 1996 1997 1998
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Britain 123.3 123.7 126.7 137.0 140.1
Mainland Europe 268.6 267.1 252.1 254.8 233.3
North America 197.5 207.8 198.3 196.5 175.7
Other overseas 227.2 331.5 334.1 242.6 307.5
Total Overseas 187.1 196.1 186.7 183.5 179.1
Northern Ireland 127.3 118.5 115.7 128.2 215.4
Domestic Trips 90.3 80.1 68.4 77.9 73.2
Total 148.6 155.9 150.8 153.5 153.3
Source: Indecon calculations from Bord Failte data
1 Average spend= revenue generated by market/ visits by market
An analysis of the route of travel of visitors to Dublin in 1997 is presented
in Table 8.4F. The figures show that of the total of overseas visitors to the
Dublin region in 1997, the majority (46 per cent) came by air from Britain,
while 21 per cent came by air from mainland Europe and 8 per cent came by air
from North America. A further 22 per cent of overseas visitors came by sea from
Britain, while 2 per cent came by sea from mainland Europe.
Table 8.4F Route of travel of overseas visitors to Dublin region -1997 (%)
All visitors Britain Mainland Europe North America
Air from Britain 46 64 13 39
Air from Mainland Europe 21 * 74 5
Air Transatlantic 8 -* 41
Sea from Britain 22 35 7 11
Sea from Mainland Europe 2 -6 3
Source: Bord Failte
The month of arrival of overseas visitors to Dublin in 1997 is profiled
in Table 8.4G. The analysis shows that the arrival of visitors to Dublin is
fairly evenly spread throughout the year. Of note is the fact that off-season
(October-March) visits to Dublin accounted for 38 per cent of all visits. This
compares with a proportion of 32 per cent in 1995. In particular, 45 per cent
of British visits were off-season in 1997. The majority of mainland European
and North American visitors arrive in the summer months.
Table 8.4G Month of arrival of overseas visitors to Dublin 1997 (%)
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All Visitors Britain Mainland Europe North America
January-March 18 20 16 15
April 7 8 7 7
May 9 8 8 12
June 11 8 13 15
July 12 10 17 13
August 13 12 15 14
September 10 9 8 12
October-December 20 25 16 12
Source: Bord Failte
In Table 8.4H we examine the average length of stay of overseas tourists
and holidaymakers in Dublin in 1997. The analysis shows that the typical length
of stay in Dublin for overseas visitors is 4.9 nights, while holidaymakers stay
for 3.3 nights on average. The longest average length of stay for overseas visitors
to Dublin is 7.3 nights for mainland Europeans, while British visitors stay
on average for 3.8 nights and North Americans for 4.2 nights.
Table 8.4H Overseas Tourists and Holidaymakers in Dublin -Average Length
of Stay per Visit -1997 (Nights)
Tourist Holidaymaker Market No. of visits -000's Nights -000's Average nights
per visit No. of visits -000's Nights -000's Average nights per visit
Britain 1313 5080 3.8 347 1120 3.2
Mainland Europe 652 4790 7.3 263 920 3.4
North America 480 2060 4.2 301 990 3.2
Other Areas 141 860 6 80 250 3.1
Total Overseas 2586 12790 4.9 991 3280 3.3
Source: Bord Failte
Purpose of visit and socio-economic profile of visitors to Dublin
In Table 8.4I we present an analysis of the purpose of visit of overseas
tourists to Dublin in 1997. According to the figures, of the overall number
of visits to Dublin in 1997, 39 per cent stated that the main purpose of their
visit was for holidaymaking, while 28 per cent were visiting for business/ conference
purposes. Among British visitors a high proportion (34 per cent) travel to Dublin
for business/ conference purposes. Almost two thirds of North American visits
and 40 per cent of mainland European visits were for the main purpose of a holiday.
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Table 8.4I Main purpose of visit -overseas tourists to Dublin -1997 (%)
Purpose All visitors Britain Mainland
Europe North America
Holiday 39 27 40 63
VFR 20 26 15 13
Business/ Conference 28 34 27 16
Study/ Personal/ Other 13 13 18 8
Source: Bord Failte
The socio-economic profile of visitors to Dublin by market is shown in Table
8.4J. The figures show that the majority (83 per cent) of visitors to Dublin
are from managerial, professional and white collar backgrounds, while 16 per
cent are from skilled and unskilled backgrounds. The proportion of visitors
from North America (90 per cent) and mainland Europe (89 per cent) who come
from managerial, professional and white collar backgrounds is higher than the
average for all visitors to Dublin.
Table 8.4J Socio-economic profile of visitors to Dublin 1997 (%)
Socio-economic bracket All visitors Britain Mainland Europe North America
Managerial/ professional (AB) 43 40 42 49
White Collar (C1) 40 37 47 41
Skilled (C2) 12 16 7 8
Unskilled (DE) 4 7 3 1
Source: Bord Failte
In Table 8.4K we examine the age profile of visitors to Dublin in 1997.
The analysis shows that over half of the visitors to Dublin in 1997 were over
35 years, while a quarter were between 25 and 34 years. North American visitors
tend to be older than both British and mainland European visitors.
Table 8.4K Age Profile of Overseas Visitor to Dublin 1997 (%)
Age group All visitors Britain Mainland Europe North America
Up to 18 years 8 6 9 4
19-24 years 13 11 18 11
25-34 years 24 30 30 11
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35-44 years 16 20 17 11
45+ years 39 32 25 63
Source: Bord Failte
Accommodation supply in Dublin
The supply and quality of accommodation plant is a key factor affecting
the choice of destination for many visitors. In Table 8.4L below we present
the supply of approved accommodation in the Dublin region between 1994 and 1998.
The figures show that there were 10108 approved rooms available in Dublin in
1998. Room capacity in the region has increased by 42 per cent over the period
1994-1998. In relation to approved hotel rooms in Dublin, there were a total
of 7,596 rooms available in 1998, the majority (65 per cent) of which were in
hotels of 3 star and above.
Table 8.4L Approved Accommodation Supply in Dublin 1994 -1998 (Rooms)
1994 1995 1996 1997 1998 % change -1994-1998
Hotels
5 Star n/ a 1,120 1,092 1,139 1,165 n/ a
4 Star n/ a 1,065 1,026 1,128 1,211 n/ a
3 Star n/ a 1,802 2,109 2,338 2,560 n/ a
2 Star n/ a 710 708 553 640 n/ a
1 Star n/ a 492 339 339 314 n/ a
Other n/ a 500 541 595 1,706 n/ a
Total Hotels 5,344 5,689 5,815 6,092 7,596 42.0
Guesthouses and B& Bs 1,773 2,042 2,107 2,191 2,512 42.0
Total Paid Serviced 7,117 7,731 7,922 8,283 10,108 42.0
Source: Bord Failte
An analysis of the type of accommodation used by overseas visitors to Dublin
by market in 1997 is presented in Table 8.4M. Of the 12.8 million nights spent
in Dublin in 1997 16 per cent were spent in hotels and 12 per cent were spent
in guesthouses and B& Bs. 28 per cent of nights were spent with friends
or relatives. North Americans tend to stay in hotel accommodation, while 40
per cent of British overnights were spent with friends and relatives.
Table 8.4M Accommodation Nights spent by overseas visitors to Dublin 1997
(%)
All visitors Britain Mainland E North America 7
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Europe
Hotel 16 20 10 29
Guesthouse and B& B 12 16 8 18
Rented 20 10 26 13
Hostels 4 2 4 7
Caravan & Camping 1 1 1 0
Friends and relatives 28 40 20 28
Other 19 11 31 5
Source: Bord Failte
Capacity Utilisation
A notable feature of tourism trends in Dublin outlined above is that the city
has a strong off-peak tourism business. The data presented in Table 8. 4G showed
that 38 per cent of all overseas visitors in 1997 arrived in the months of October
to March. This period coincides with the traditional playing season for outdoor
field sports such as rugby and soccer. It is likely that sporting events such
as Five Nations rugby internationals make a contribution to off-peak performance.
Nevertheless figures for room occupancy of Dublin hotels indicate that there
is some spare capacity to deal with any increased demand associated with larger
or additional sporting or similar events outside of the peak tourist season.
The data presented in Table 8.4N show that while room occupancy averaged 86
per cent for the 6 months between April and September 1997 the figures for January-March
and October-December were 64 and 70 per cent respectively.
Table 8.4N Room Occupancy by month 1997 (%) Per Cent
January-March 64
April 79
May 85
June 89
July 87
August 86
September 90
October-December 70
Source: Bord Failte -Hotel Performance
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Prospects for tourism in the Dublin region
The prospects for tourism in the Dublin region over the next five years will depend on a number of factors, of which the most important are described below:
. The prospects for economic growth in Ireland's tourism markets -principally
the UK, mainland Europe and the US;
. The attraction of Ireland and Dublin in particular as destinations for different
types of visitors -this will be influenced by the tourism product and facilities
on offer and the ability of Dublin to compete effectively on price and quality;
. The success with which Ireland is marketed as an attractive destination;
. The cost of access to Dublin -principally related to the costs of air access
to Dublin as opposed to other (particularly European) competing cities.
In recent years Dublin has benefited enormously from the positive and 'fashionable'
image which Ireland has developed among British, European and American visitors.
Dublin has gained market share particularly in the short-stay, city breaks segment.
It must also be noted, however, that Dublin also benefits from its status as
the capital city and main point of entry into the country (Dublin airport handled
11.6 million passengers in 1998). Many visitors will remain in Dublin only for
a few days before travelling onwards to other regions of the country. The ability
of Dublin to attract and retain visitors for longer periods will depend on the
quality and cost of various attractions and activities which are unique to the
city, as well as the availability of facilities such as accommodation up to
a high standard.
In 1997 Bord Failte, in conjunction with a number of other national and international
organisations, prepared a set of projections for visitor numbers and revenues
by market out to 2003. Although these projections are not up-to-date and no
forecasts are available for the Dublin region in particular, they are nevertheless
useful as a basis for preparing projections for the Dublin region. Table 8.4O
contains Bord Failte's projections for visitor numbers and revenues for the
period 1999-2003.
Table 8.4O Forecast Overseas Visitor Numbers and Revenues in Ireland 1999-2003
Ireland 19981 19982 1999 2000 2003
Total visitors -000's 5,394 5,534 5,730 6,120 7,120
Revenues*
IR£ billion
2.30 2.28 2.55 2.83 3.69
Source: Bord Failte, A Business Plan for Irish Tourism Marketing, 1998-2003.
1 Bord Failte 1997 forecast for 1998
2 Actual numbers and revenues for 1998
* Revenues are based on total foreign exchange earnings from tourism
The projections in Table 8.4N show that total visitor numbers to Ireland
are expected to reach 7.12 million by 2003, representing a growth of almost
29 per cent compared with the actual level of visitors in 1998. Revenues (as
measured by foreign exchange earnings) are forecast to rise to IR£ 3. 69 billion
by 2003, implying a growth of 62 per cent compared with the actual 1998 level
of IR£ 2.28 billion. 9
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In order to prepare a set of projections for tourism in Dublin, Indecon has made the following assumptions in relation to market share and revenue yield:
. Dublin's share of total revenues from tourism in Ireland remains stable over
the period 1999-2003;
. Revenue per visit to Dublin is assumed to grow by 1 per cent per annum plus
an inflation increase of 2.5% per annum over the period 1999-2003;
. Revenue per overseas visit to Dublin is assumed to grow in line with foreign
exchange earnings per visit.
In Table 8.4P we present Indecon's forecast for Dublin overseas visitor numbers
and revenues for the period 1999-2003, based on Bord Failte's national projections
and the assumptions set out above. According to our projections, total overseas
visitors to Dublin are expected to reach 4.28 million by 2003, representing
an increase of 45.9 per cent compared with their level in 1998. Revenues from
overseas visitors to Dublin are forecast to reach almost £850 million by 2003,
equivalent to a growth of 62 per cent on 1998. The average revenue per visit
(or the yield from overseas visitors) is projected to increase to £198.5 by
2003, compared with £179.1 in 1998.
Table 8.4P Indecon Forecast for Overseas Visitor Numbers and Revenues in
Dublin 1999-2003
Ireland 1998 1999 2000 2003
Total overseas visitors -000's 2933 3168 3397 4280
Revenues from overseas visitors -IR£ million
525.2 587.1 651.6 849.6
Revenues per visit -£ 179.1 185.3 191.8 198.5 Source: Forecasts based on Bord Failte projections and Indecon assumptions 10