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Tourism sector warns of US risks, price pressures and staff shortages
Tourism sector warns of US risks, price pressures and staff shortages

BreakingNews.ie

time02-07-2025

  • Business
  • BreakingNews.ie

Tourism sector warns of US risks, price pressures and staff shortages

Fáilte Ireland has warned of growing concerns around Ireland's dependence on US visitors, as 'unorthodox policy decisions' in the United States fuel international uncertainty. Its April 2024 industry outlook report, designed to offer a 360-degree view of the sector, predicts 2025 to be a 'solid year' for Irish tourism, with room for further growth in 2026 and beyond. Advertisement However, the report flagged growing price sensitivity among tourists, tight profit margins for operators, and staffing shortages as major concerns facing the industry. It said: 'Consumers are becoming more value conscious as household saving rates are ticking upwards. We're seeing this in tourism via the declining length of stay witnessed in Ireland and elsewhere.' The research highlighted broader economic uncertainty, particularly due to political developments in the US. It said global growth was becoming more sluggish, while the outlook for the Irish economy remained 'modest, but positive'. Feedback from accommodation providers and visitor attractions pointed to value-for-money concerns among tourists, especially those from overseas. Many operators are operating on tight margins and are wary of passing on rising costs to customers. Advertisement 'Price resistance remains a challenge, with margins under pressure as cost increases can't be fully passed on to the end user,' the report said. 'Any price increases are likely to be in line with inflation.' Some hotels were said to be adjusting their rates downward after losing business due to high prices. Rising costs were cited by hoteliers as a growing issue. Operators also raised the issue of staffing shortages, particularly around retention and the increasing reliance on casual or part-time workers. Advertisement Investment in facilities and sustainability projects such as solar panels or space modernisation was being delayed by 'slow returns on investment and financial constraints', the report noted. 'Businesses face financial challenges, including high operational costs, VAT, and electricity expenses. Weather dependency and the impact of external factors on visitor numbers are also concerns,' it said. The report described a 'mixed' picture for accommodation providers, with some enjoying strong bookings while others struggled with 'low occupancy'. Nonetheless, there was strong capital investment last year, with an estimated €950 million worth of hotel and hostel transactions in 2023, a 170 per cent increase on the previous year. About 7,200 hotel, aparthotel and hostel bed spaces were under construction at the end of the year. The research said Dublin commanded a significantly higher 'price per key' with a room valued at €360,000 at one upmarket hotel in the capital compared to €134,000 for a similar hotel in Co Cavan. The DAA, which runs Dublin Airport, expected seat capacity to rise by 5 per cent this summer. Aer Lingus reported steady short-haul bookings and 10 per cent growth in long-haul traffic. Fáilte Ireland said it had no further comment to add to the report.

North Queensland residents struggle with restrictions on damaged road
North Queensland residents struggle with restrictions on damaged road

ABC News

time10-06-2025

  • Climate
  • ABC News

North Queensland residents struggle with restrictions on damaged road

There is growing frustration among residents of a rainforest community north of Townsville who are struggling with a permit system to return home each night. The Mount Spec Road, leading to the townships of Paluma and Hidden Valley, was cut by landslips during record-breaking monsoon rain in February. Alternative routes increase travel times by more than two hours along roads mainly suitable for four-wheel drives. Queensland's Department of Transport and Main Roads (TMR) has not provided a timeline for fully reopening the road. It last month introduced a permit system for full-time residents to access Mount Spec between 6am and 6pm. "We assure the community that we are working as quickly and safely as possible to progress critical repairs," a spokesperson said. Traffic controllers monitor entrances and the road is shut and monitored by cameras outside permitted hours. Tourism operators said the impact had been "devastating", with one business estimating more than $100,000 in lost bookings. Rhett Harrison, who lives between Paluma and the Hidden Valley, said the permit system had been challenging. "After you work an eight-hour day, by the time you travel into town, you really haven't got a lot of time to be able to live your life, get groceries and you have to pretty much hope there's not an accident on the way back to the range road," he said. Mr Harrison worked from home and homeschooled his son while Mount Spec Road was closed, and relocated to his sister's house in Townsville to reduce travel times. "We would come back in and stay at her place for the entire week, all in one bedroom," he said. "Pretty much so that we could go to work, so that he could have some level of normalcy of being able to return to school." He said he wanted access hours to Mount Spec Road reviewed. "I actually think that road is safer to drive at night because if there are any vehicles oncoming I can see them because of the headlights," he said. Paluma and District Community Association president Jamie Oliver said part-time residents were being denied access to their homes and the community was growing frustrated. "For those people who work in town and finish by around 5:30pm, it's very difficult to get to the start of the road by six," he said. "It's still extremely inconvenient even for those permit holders to get up." Mr Oliver said residents wanted TMR to release geotechnical expert assessments so they could understand the key data and logic behind the department's decisions. "Repeatedly we get nothing but vague information that is contained in the road reports," he said. "It really is infuriating and insulting to be held in this kind of disregard." A TMR spokesperson acknowledged the residents' frustration and said public safety had remained a top priority throughout the planning process. The spokesperson said the department would continue to update the community. "Engineering reports are complex technical documents and uncontrolled distribution can lead to misinterpretation and misinformation," they said. The authority said it was complying with conditions outlined by geotechnical experts, which included limiting the number of vehicles travelling on the road to reduce the risk of further landslips. They said the 6am-to-6pm timeframe provided drivers with the "best opportunity" to react to oncoming hazards. "TMR anticipates changes may be made to the conditions once restoration works occur and the risk of the slope sites reduces," they said. "Traffic data is being monitored and if volumes remain within safe limits, TMR would be able to issue further permits to other residents within the area, including those who reside there part-time."

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