Christmas 2020
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INSIDE HOTPLATE
P. 5
MINISTER’S MESSAGE MINISTER FOR THE ECONOMY, DIANE DODDS, SPEAKS TO HOTPLATE. P. 5
P. 17
FORGET THE FORECAST COMMENTARY FROM OUR CHIEF EXECUTIVE ON THE NEED FOR SUPPORT. P. 4 MEMBER NEWS Only a few snippts this month. Hopefully we’ll be back to more positive news soon.
P. 6 HOTEL SECTOR Michael Williamson from ASM on why 2019 performance is important.
P. 11 GUIDELINES The very latest guidelines on opening restrictions from 26th December.
P. 9 TOURISM AGENCIES Commentary from Tourism NI and Tourism Ireland on the response to the pandemic.
P. 13-15 HOTPLATE Northern Ireland Hotels Federation The McCune Building, 1 Shore Road Belfast BT15 3PG Tel: 028 9077 6635 Web: nihf.co.uk Email: office@nihf.co.uk
PRESIDENT’S MESSAGE
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PRESIDENT’S MESSAGE
I
t has been a year like no other! Just as hotels were given the green light to reopen, albeit under very strict measures, lights will go out yet again for most of us at 12.01 on Boxing Day morning. It’s a bitter pill to swallow particularly after the sacrifices the sector has made throughout 2020. Twenty-three weeks of closure plus the seventeen weeks of restricted trading has taken its toll on us all. I thought my presidency would be about Brexit but a much bigger crisis has engulfed us. As an industry, we have been stoic throughout, making the best of a bad situation: trading when we can, pivoting operations to create new income streams and investing in infrastructure and training to ensure COVID-19 compliance. Assistance from The Executive in the form of rates relief and Local Restrictions Support Grants has been welcomed. The VAT reduction to 5% and the introduction of furlough has also been of benefit. However, the nature, size and complexity of hotels mean they are expensive to run and continue to rack up considerable costs even when closed. The estimate of this cost is circa £2.5m per week of closure. At this stage, the need to cover fixed costs with already strained reserves and limited grant aid is causing great distress. Furlough is costing the sector in the region of £30 per week per employee.
The removal of the furlough bonus was a real blow to all. The Federation is pressing for additional support to cover closure and support us through the next lockdown. We have outlined the need for full rate relief in the coming year and will continue to press for a full year’s rate holiday for the industry. VAT needs to remain at 5% and once we re-open the economy will require stimulation. The vaccine has given us optimism. The main hope of hoteliers is that the blunt tool of closure will cease. We appreciate that the health situation is dire and respect the need for difficult decisions. We still believe we could have been part of a better solution, as our regulated spaces offer a less risky meeting place than unpoliced areas. In the coming year, I hope to have an opportunity to meet many of you and I am confident that we will return to more normal times. The Federation will keep you updated on any developments and I would like to thank you all for your continued support. I wish you, your family, friends and all those working in, supporting or supplying the hotel industry, a healthy and happy Christmas. I hope that the coming year will be one of great hope and a restoration of confidence in tourism and hospitality.
STEPHEN MELDRUM President
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EDITORIAL
FORGET THE FORECAST JANICE CALLS FOR INCREASED HOTEL SUPPORT TO BOOST TOURISM Throughout 2020 many have attempted to forecast performance in the hotel sector with increasing frustration as outside factors reduce any predictions to the realms of hopeful fantasy.
Londonderry midscale businesses fared better. Larger hotels did not trade as well as their smaller counterparts; this may be due to bed stock being reduced but also shows that cities may not be as popular with those seeking a break. The star of the show was South West Ulster (Fermanagh, Omagh & Tyrone) with strong summer trading extending into the autumn. This region had a better room rate and occupancy level than any other part of Northern Ireland.
The latest figures from STR, the international benchmarking company, show a year to date occupancy of 34.6%, an ADR of £72.24 with a RevPAR of £25.07. The extended circuit breaker into mid-December and the post-Christmas lockdown will mean limited initial change to the overall 2020 performance. Now is the time to support the industry with urgent action required to ensure In terms of rooms, the impact is stark its survival. With fixed costs of £2m per with around £80m revenue this year week, hotels have severely depleted their compared to £200m in 2019. Total hotel reserves at this time. Businesses have had income (TRevPAR) in 2019 was £670m limited support to date. at a conservative level. In 2020, with the majority of income streams cut The reduction of VAT to 5% was a off, total hotel revenue will fall below lifeline. This needs to be extended for the £200m, a drop of over 70%. This is hardly foreseeable future. Business rate relief surprising after a year during which has been welcomed but the sector needs hotels have experienced 24 weeks of a rates holiday for all of the 2021-22 fiscal closure, 17 weeks of severely restricted period. Furlough has been good but with trading and no Christmas business to mounting costs its viability for a sector speak of. that is closed and no longer getting the furlough bonus has come into question. Further analytics from STR show The majority of hotels had no direct a stronger performance by smaller support over the first lockdown. Since properties, primarily those in the upper the circuit breaker they have been able to and luxury scale. They traded well; claim Localised Restriction Support. This particularly those with a strong leisure is up to a maximum of £1,600 per week. and food offering. For a sector with a fixed costs bill of £2m, this level of support is inadequate and In cities like Belfast and Derrydoes not go far enough in compensating
JANICE GAULT Chief Executive
hotels. There have been promises of additional support but these, as yet, have not manifested into payments. As we approach a new year, there has been little talk of recovery. The start of 2021 is going to be difficult as businesses are likely to be closed for at least six weeks. Occupancy levels for 2021 are currently predicted to come in under 50% with average room rates falling to below £70. This is not pleasant reading for hoteliers who have sacrificed so much over the last nine months. Hotels have a unique place in society. As one of the pillars of the economy and an integral part of tourism recovery, support for hotels goes well beyond their survival. It’s about giving tourism a chance to return to its former glory and contribute to our economy in a meaningful way in the future.
MINISTER’S MESSAGE WORKING TOGETHER, TOURISM CAN THRIVE ONCE AGAIN Heading into 2021 with a vaccine roll-out underway, we have turned a significant corner in the dreadful coronavirus pandemic. Society may still have a way to go, but at last there is real cause for cautious optimism. 2020 will go down as the year that most of us would like to forget, but which could hardly be forgotten. As COVID-19 has battered people’s lives, global health systems, world economies and international travel, our own economy has faced a period of trauma and unprecedented pressure. All sectors have been affected by the efforts to contain the virus, but the stark impact of the pandemic on our tourism industry has left it with more challenges to face than most. In leaving 2020 behind it is worth noting that our tourism industry is not alone in facing into new realities and uncertainties in the New Year. Tourism markets everywhere are facing enormous challenges in 2021, and how they will overcome them will be a big test not just for our own industry but for the whole world.
DIANE DODDS Minister for the Economy With attention absorbed by coping with the pandemic it is not surprising that eyes have been diverted from what the giant spirit of Northern Ireland has achieved over the last decade. Welcoming 5.3 million visitors, tourism in Northern Ireland earned more than £1 billion in 2019. Hitting the Executive’s target and breaking the billion-pound mark for the first time was a truly marvellous achievement and shows just how well the industry was performing before the crisis developed. Over the last decade tourism has grown to become a significant driver of our economy and has provided one of our biggest success stories. Staging the highly successful 148th Open last summer demonstrated that as a destination Northern Ireland had arrived on the global stage. Indeed, it allowed us a moment to reflect that we have built a thriving industry employing some 70,000 people, invested large sums of public and private money in attractions, accommodation and experiences, and garnered a host of international accolades.
It is a picture worth seeing with fresh eyes, because it gives us solid evidence of what is possible for tourism here. Clearly there is interest in Northern Ireland as a destination and plainly we have the product and the people that can attract visitors and generate revenue. No-one doubts that 2021 will be a challenge. But there is pent-up demand out there, and hopefully recovery can be built in the first instance by focusing more sharply on and working to realise further business from the domestic, Republic of Ireland and Great Britain markets. Throughout this year I have been hugely impressed by our tourism industry. Its people are not only remarkably resilient, but versatile, creative and innovative. Going into 2021 things may not be quite the same, but there is an unmistakeable giant spirit in Northern Ireland. If we work together and embrace it like never before, there is no reason to doubt that the tourism economy will flourish once again.
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MEMBER NEWS
GALGORM SPA. » Santa takes a break from delivering presents to spend a few hours at Galgorm Spa & Golf Resort.
NIHF MEMBER NEWS
TITANIC HOTEL BELFAST
KILLEAVY CASTLE
CULLODEN ESTATE & SPA
Titanic Hotel Belfast has won an array of local and international awards in the last couple of months and the public got behind voting for the hotel even when the doors were closed!
Killeavy Castle Estate has been awarded Boutique Hotel of the Year at the 30th anniversary of the Golfers Guide to Ireland Awards, fighting off fierce competition to pick up the prestigious award at the recent virtual ceremony.
The Culloden has completed a £750,000 renovation of its spa and wellness facilities.
Although unable to visit, the public were not deterred in voting for the hotel and for the third year in a row firmly anchored Titanic Hotel Belfast with the acclaimed title of ‘Northern Ireland’s Leading Hotel’ at the prestigious Global Travel Awards. For the second year, the hotel has also installed a life-sized Gingerbread house to add some festive cheer to Christmas diners.
Speaking about the accolade, Jason Foody, General Manager of Killeavy Castle Estate, said; “After a challenging year for the hospitality industry, we are delighted to have been recognised as Boutique Hotel of the Year by the Golfers Guide to Ireland, acknowledging our commitment to exceptional customer service, our stunning facilities, but most of all our people who make the Killeavy experience truly exceptional.”
This has included the introduction of both a new linear vitality pool which enables views of the garden through the floor to ceiling windows and a Tylarium, which is a combination of a sauna and steam room. There is also a new larger steam room, a new couples’ treatment room and two additional bespoke pedicure treatment rooms. Lisa Steele, General Manager of Culloden Estate & Spa said: “Now, more than ever, people need a sanctuary to relax, unwind and be pampered in and The Spa at Culloden is that perfect haven.”
WHAT IS NEEDED TO STOP THE INDUSTRY COLLAPSING? THE FEDERATION CONTINUES TO HIGHLIGHT THE MANY ISSUES BEING FACED BY THE INDUSTRY AND LOBBIES FOR A PATH TO RECOVERY By the end of 2020, the hotel sector in Northern Ireland will have been subjected to a 14 week period of total lockdown, an eight-week circuit breaker and eighteen weeks of restricted trading including a curfew, limited sales of alcohol and no major events and weddings being severely curtailed. CROWNE PLAZA BELFAST The Bodyscape Health Club at Shaws Bridge has opened in the Crowne Plaza Belfast. With an extensive gym and the city’s newest equipment, a 20m pool, over 50 free classes per week and a spa.
As the industry faces another closure from 26th December for a further six weeks, the Federation is asking for the following measures as a matter of urgency and is campaigning for them on your behalf: VAT – continuation of 5% VAT rate The NIHF has lobbied for VAT to remain at 5% for all of 2021 and that this be considered as a long-term measure until the detrimental effects of the pandemic have been redressed.
LA MON HOTEL The La Mon Hotel & Country Club won Hospitality Team of the Year at the Institute of Hospitality Awards. Featured in the above image are; Michael Scott from Firmus Energy, Marianne Hood and Pamela Ballantine presenting the Hospitality Management Team of the Year to Jayne Weir and Miriam Donaldson from La Mon Hotel & Country Club.
Furlough Bonus That this be restored and paid out in this financial year to those who retained staff throughout closure.
Rates Relief A full rate holiday for all hotels and accommodation providers in the coming financial year 2021-22. Additional Grant Support Grant aid for those who did not receive any funding over the first lockdown. Increased support for the sector to reflect the level of fixed costs that businesses are facing during closure. Payment of the large Business Hospitality Grant as a matter of urgency. Continuation of the Localised Restrictions Support Scheme for the period of lockdown, Recovery Plan & Funding A recovery plan for the sector with appropriately funded activity to restore tourism in Northern Ireland. Gatherings, Events & Conferences A plan to allow trial events and a pathway to restore normal activity in the sector.
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BUSINESS OUTLOOK SUMMIT
Save the Date 3rd March 2021 | Online Join us online for Hospitality Exchange – The Business Outlook Summit on Wednesday 3rd March 2021 at a computer near you. Featuring Tourism in 2021 Industry Outlook The Global Picture More details to follow in the New Year.
Business Outlook Summit 3rd March 2021 | Online
GUIDELINES
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LATEST GUIDELINES A SUMMARY OF THE LATEST RESTRICTIONS FOR HOTELS Such is the speed at which changes are made, even the Government legislators are struggling to keep up with amendments. Here are the latest guidelines for hotels as we went to press. The Christmas closure is for SIX WEEKS from 26th December 2020 up until 6th February 2021. While this will be reviewed after four weeks, the lockdown will be in place until at least 6th February 2021. There are extra restrictions in place for the first week from 8.00pm to 6.00am including a closure of businesses at 8.00pm. Hotels must close (with exceptions noted below) at 12.01 on 26th December 2020, apart from guests who are already booked in before this time. Those already in house can remain for the duration of their booked stay - limited to 28th December. A closure at 12.01am on the 26th means NO trading with nonresidents on Boxing Day with
service for residents ONLY. On 26th December, you can serve residents food and alcohol under current restrictions. There is a curfew between 8.00pm to 6.00am from 26th December to 2nd January and no alcohol may be served, even via room service during these hours. From 2nd January residents may only consume alcohol via a mini-bar as in previous circuit breaker. Residents in a hotel after 12.01 on 26th December are NOT permitted to use any of the following: spa, leisure or meeting facilities. The following conditions continue to apply for tables: • Groups must be of 2 households ONLY; • Maximum table size is SIX excluding children under 12; • Track & Trace MUST be in place for all over the age of 16; • Social distancing of 2m but where this is not possible mitigations to be in place; • Face Covering MUST be worn
when moving about the hotel and on entering and exiting. Those who are travelling for work, emergency situations, moving home and the vulnerable may check in after 25th as may those who are transiting from a family bubble to their normal place of residence. Those exiting a family bubble may ONLY stay for ONE night. The final details on stays and service for essential workers post 28th December have to be clarified but it is likely to be along the lines of the last circuit breaker with food permitted and NO alcoholic beverages. Additional measures in place from 26th December to 2nd January will apply. Hotels can host wedding ceremonies ONLY for up to 25 people with a risk assessment. Wedding Receptions are NOT permitted. Meetings and other gathering are not permitted in the hotel setting.
FURLOUGH EXTENSION NOW EXTENDED UNTIL 30TH APRIL BUT NEW MINIMUM WAGE ALSO DUE The Chancellor has announced that the current Job Retention Scheme will now run until 30th April. The Government has also announced the National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from
April 2021. It accepted in full recommendations made by the Low Pay Commission at the end of October. The National Living Wage will increase by 2.2 per cent from £8.72 to £8.91, and will be
extended to 23 and 24 year olds for the first time. For workers aged under 23, Commissioners recommended smaller increases in recognition of the risks to youth employment which the current economic situation poses.
THANK YOU TO 10
TRADE SUPPORT
THE TRADE
THE TRADE MEMBERS AND SPONSORS THAT SUPPORT THE FEDERATION HELP US TO DELIVER ALL THAT WE DO. THANK YOU FOR YOUR CONTINUED SUPPORT IN SUCH A DIFFICULT YEAR.
D AIB (First Trust Bank) D Flogas D ASM Chartered D For-Sight Guest CRM Accountants Belfast D Frost Couture D BOI Payment D Frylite Acceptance D Get Fresh D Bookassist D Glory Ireland Ltd D Bunzl McLaughlin D Guestline D Bunzl Rafferty D Henderson Hospitality Products
D BWH Hotel Group D Calor D Classic Drinks D Coca-Cola HBC D Counterpoint D COVID Venues Limited D Criton D Diageo D Dillon Bass D ESL Services D Euronet Merchant Services
Foodservice
D Hospitality Review D Insight6 D Kayfoam Woolfson D Keenan Seafood D La Rousse Foods D Licensed & Catering News
D Life One Great Adventure
D Linencare D Lynas Foodservice D Molson Coors
D Net Affinity D O’Reilly Stewart D Pallas Foods / Brakes Foodservice
D Percipient D Power NI D RHM Commercial D Richmond Marketing D Right Revenue D Savills D Stephens Catering Equipment
D STR D Tennents NI D Tourism Northern Ireland
D Tourism Ireland D Unilever Food Solutions Ireland
D United Wines D Winterhalter
To find out more about the benefits of Trade Membership, please contact Anna in the Federation office.
HOTEL INDUSTRY
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HOTEL INDUSTRY MICHAEL WILLIAMSON FROM ASM ON WHY 2019 PERFORMANCE MATTERS What next? Despite the gloom of 2020, we should not forget just what a success 2019 was for tourism in Northern Ireland and for the hotel industry. Our hosting of The Open was always going to be the highlight of the year, bringing with it much welcome publicity and high spending visitors. But it would be wrong to think that a successful 2019 only arose because of the return of one of the world’s great golf tournaments to these shores for the first time in almost six decades. The reality is that the average occupancy rate at hotels across Northern Ireland increased in nearly every month of the year, with the largest increases before the main summer season It would be reasonable to assume that increased demand also pushed room rates upward and it did, but there was surprisingly modest year on year movement in most months, with a bumper increase in July (+£16.26 per room night over 2018) on account of The Open. The average room rate across the country for 2019 was £100.89, a 4.1% increase for the year. When taken together with the bedroom occupancy rate (79.3% in 2019 versus 75.6% in 2018), RevPar at £80.01 in 2019 was the
best on record, almost doubling in the space of 8 years (RevPar 2011: £40.66). Indeed, in 7 of the past 8 years, the demand for hotel accommodation has increased and despite the level of new supply entering the market over the past 3 years, the number of bedrooms occupied in 2019 reached new heights at 2.7 million (a 15% year on year increase). Despite the positive news on bedroom demand and pricing, EBITDA (earnings before interest, tax, depreciation and amortisation) didn’t quite follow suit, but remained relatively strong despite cost pressures - payroll in particular made quite a jump from 34.8% of turnover in 2018 to 36.3% in 2019. Why is the 2019 performance important? It shows how well the industry has progressed in a relatively short time and had circumstances been different in 2020, last year would not have been the high watermark. But, as we start the process of recovery, the 2019 results offer a solid foundation against which to measure progress. They will also allow us to measure the true financial impact of Covid-19 on the industry and that could help in any future discussion with the local Executive and in making
MICHAEL WILLIAMSON ASM Belfast
a constructive argument during a future rates review. And you can make an important contribution to this by providing financial data for our 2020 and 2021 hotel surveys. My aim is to produce the most comprehensive and robust industry performance measures starting with the survey results for 2020. I will be issuing questionnaires in early 2021 and I appeal to you to find the time to participate. In the meantime, I offer you my best wishes for Christmas and every success in 2021 and beyond.
ROOM OCCUPANCY % BY MONTH 2019 V 2018 90%
HOTEL BEDROOMS OCCUPIED 2010-19 (MILLIONS)
85.7
85% 80%
2.6
75.7
75%
81
80.4 79 73.4
71.9 67 68.7
69.9
70.4
65%
2
65
60% 60.4
1.8
55%
1.6 1.4
80.5 76.8
74.9
70%
2.2
86.5 84.6 85.9 84.1 82.2
84.4 81.7
2.8
2.4
87.6
NI Average 2019
NI Average 2018
50%
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
45%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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Tourism NI
Marketing Campaign
TNI MARKETING CAMPAIGN WITH 75% FUNDING NOW OPEN FOR APPLICATIONS Tourism NI launched a major recovery campaign in July to help kick-start the tourism industry after lockdown. The Federation has again been tasked with engaging with the industry to facilitate a new Co-operative Marketing Fund for all graded accommodation, tourist attractions and experiences. The fund has been increased and a 75% subvention is offered with up to £10,000 available to claim.
The campaign will take place from February to March 2021. The closing date for entries is now 22nd January 2021. The campaign will feature the new tourism brand for Northern Ireland. ‘Northern Ireland – Embrace a Giant Spirit’ will communicate a high quality experience to visitors that is recognisable as distinctively Northern Irish. All participants in the campaign are encouraged to use this branding
wherever possible. All participants in this campaign MUST be accredited under the We’re Good To Go scheme. Please ensure you have completed the online registration and received your certificate BEFORE you apply for this campaign.
75% Funding for your marketing. Apply now at nihf.co.uk
TOURISM NI
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TOWARDS A POST-PANDEMIC TOURISM INDUSTRY JOHN MCGRILLEN HAS AN OPTIMISTIC VIEW FOR 2021 To say 2020 has been a challenging year for tourism risks putting it rather too mildly. Frankly, it has been our annus horribilis. This pandemic arrived just at the point when Northern Ireland tourism had hit the milestone of contributing £1 billion to the economy annually. Businesses in the sector were poised to build on that figure in 2020 and benefit further from a decade of investment in tourism, the hosting of major events and a great deal of hard work. The latest NISRA accommodation statistics show the continued devastating impact of Covid-19 in Northern Ireland. The downturn in hotel sales in September was less than that seen in August, however occupancy declines were slightly larger, likely impacted by more hotel rooms becoming available during September. With a vaccine about to be rolled out and hopes for some kind of new normal emerging by next summer, there are however some notes of hope and positivity to be found as we arrive at Christmas 2020. Latest consumer research from November shows that while many respondents were still undecided about their holiday destination for 2021, they are still dreaming of their next trip. It will be lower rates of COVID-19 and a vaccine that will be the most influential factors in encouraging overseas travel in the coming months. The crisis will reinforce the structural changes we are already seeing in demand towards domestic tourism. The all-island market will be the key driver
in the short and longer term, and to cope with changing consumer demands going forward, businesses will have to adjust, innovate and work to attract visitors from closer-to-home markets. I was particularly heartened that hotel bookings by visitors from the Republic in August rose by 200% given the importance of this market for recovery. The road ahead will not be easy, but in a context where people are looking for authenticity, sustainability, safer activities and even simplicity there is an opportunity for Northern Ireland to capitalise on our unique rural tourism offering, city tourism and our key places of outstanding natural beauty. Tourism NI is deeply committed to rebuilding the sector and to working together in partnership with the NIHF. Over the last year we worked successfully to distribute the Cooperative Marketing Fund and are together launching a new increased fund for 2021. While it has been an extremely difficult year, I would not wish anybody to form the impression that the business of tourism is broken – far from it. For the moment, the pace and extent of our recovery is uncertain, but recover we will. My hope for the New Year is that the industry’s regeneration is fired by innovation and proactivity, and that we will move forward together in new ways that help visitors embrace the giant spirit of Northern Ireland.
JOHN MCGRILLEN Tourism NI CEO
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TOURISM IRELAND
TOURISM IRELAND COVID RESEARCH NEIL AULTON, TOURISM IRELAND’S HEAD OF STRATEGY AND INSIGHTS, SHARES THE KEY FINDINGS FROM TOURISM IRELAND’S LATEST PHASE OF COVID-19 RESEARCH COVID-19 has had a devastating impact on overseas tourism to Northern Ireland this year. Recovery will depend on many factors – not least the mindset of the overseas consumer and how this is evolving. Since the pandemic began, Tourism Ireland has been tracking the opinions and behaviours of overseas consumers regarding travel to Northern Ireland and the island of Ireland. This work has included an extensive programme of consumer research in our main markets – to really understand what overseas consumers are thinking and how their mindset has been changing. Tourism Ireland’s aim is to gain a comprehensive understanding of the impact on the consumer and the new international marketplace, to identify when consumers will be ready to consider holidaying again and which markets will offer us the best prospects in 2021. The latest round of research was carried out in November in our top four overseas tourism markets: GB, the United States, Germany and France. This wave also included focus groups with participants based in New York, Boston and San Francisco. The research was undertaken by REDC Research. Some of the main findings of the latest phase of Tourism Ireland’s COVID-19 research include: • Holidaymakers are still planning and dreaming of their next trip. Personal indulgence and a treat after the difficult lockdown period are driving motivations to travel. • Lower rates of COVID-19 and a
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vaccine will be the most influential factors to encourage travel over the coming months. However, clear comprehensive insurance, high quality available healthcare and testing will also be important. November saw the lowest levels of comfort among holidaymakers about taking a European trip, since the programme of research began. This corresponds with significantly increased levels of COVID-19 in each market at the time of the research. Northern Ireland and Ireland are considered among the most comfortable destinations for a short break or holiday during social distancing. However, comfort levels have reduced for both the island of Ireland and for other competitor destinations. Summer 2021 is most commonly seen as the next window to take a break in Europe. Planning remains an important part of the holiday experience – including research into travel costs, COVID-19 security and cancellation policies. Many respondents were undecided about their holiday destination for 2021. Word-of-mouth, official government sources, price comparison websites and travel agent websites are expected to be among the most influential sources when it comes to destination choice.
This programme of research will fundamentally shape Tourism Ireland’s activity as our industry recovers in 2021.
NEIL AULTON Tourism Ireland
It will help us identify when consumers are ready to consider holidaying again and which of our markets offer the best prospects. The insights gained will ensure that our future promotional plan is as tightly targeted and as powerfully motivational as it possibly can be, in order to drive a strong recovery. This phase of research was carried out prior to recent good news about vaccines; it is highly likely that there will be an improvement in the sentiment among respondents in our next wave of research. Tourism Ireland’s next wave of COVID-19 research will be conducted in December.
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RESTARTING OVERSEAS TOURISM TO NORTHERN IRELAND IN 2021 NIALL GIBBONS OUTLINES TOURISM IRELAND’S PLANS TO RESTART OVERSEAS TOURISM TO NORTHERN IRELAND IN 2021 2020 has been a catastrophic year for everyone in our industry, with unprecedented and extremely serious consequences for tourism operators across Northern Ireland. However, I believe that 2021 will see the restart of international travel. We in Tourism Ireland are actively planning for that restart. We have a three-phase plan to RESTART, REBUILD and ultimately REDESIGN demand. The priority for 2021 will be to RESTART tourism to Northern Ireland and the island of Ireland. Right now, we are planning a significant kick-start campaign, which will be launched when the time is right, possibly around St Patrick’s Day 2021 – to drive bookings and revenue for tourism businesses. It will deliver a very clear ‘book now’ message to create demand for summer holidays here, in order to save businesses and create jobs. Called ‘The Green Button’, the campaign will single-mindedly drive visitor numbers and intention to book a trip here in 2021. Filming for the campaign will take place early in 2021. It will include a focus on outdoor experiences and will feature some of our iconic attractions, including Titanic Belfast and the Giant’s Causeway. The concept revolves around creating a commitment to travel here by ‘pressing the green button’ – green being the universal colour of ‘go’ and instinctively connected with the island of Ireland and St Patrick’s Day. Digital marketing has been increasingly important for Tourism Ireland in recent years. However, 2021 will see a stepchange in our capabilities in this area. A significant redesign of our international website, Ireland.com, has been under way throughout 2020. The new site is
currently going live; in all, there will be 33 market sites, in 30 different countries, in 11 languages. It will be fundamental to our proposed kick-start success. In 2021, we will roll out a new ‘Northern Ireland: Embrace a Giant Spirit’ campaign in GB, highlighting Northern Ireland as a great choice for a ‘staycation’ to GB travellers. We will continue to highlight Northern Ireland’s connection with Game of Thrones and, in particular, we will harness the opportunities presented by the new Game of Thrones Studio Tour at the Linen Mill Studios in Banbridge, which is due to open in the summer. Our Global Greening initiative will see hundreds of iconic landmarks and buildings around the world light up in green around St Patrick’s Day; 2021 marks the 12th year of Global Greening. Above all, flexibility and agility will be key elements of our work in 2021. Recent news about vaccines is really positive and gives us hope for travel in 2021. In our research, Northern Ireland and Ireland have consistently been shown among the destinations that holidaymakers would be most comfortable visiting, even while social distancing measures are in place. So, while we in Tourism Ireland certainly don’t underestimate the challenges that may lie ahead, we embark on 2021 with hope and optimism. Once this crisis is past and the island of Ireland is open again to overseas visitors, we in Tourism Ireland will be ready to play our part in delivering a
NIALL GIBBONS Tourism Ireland
sustainable recovery, for the long-term future of our industry. We know that, while unquestionably the short-term priority for our industry is to restore economic sustainability, our success in attracting future overseas visitors will be increasingly dependent on the demonstration of environmental and community sustainability as well. We will be doing everything that we can to recover as much business as possible and to return our great industry to growth.
NORTHERN IRELAND HOTELS FEDERATION
Members. We are here to support you.
ECONOMICS
Webb Wonders
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Musings from the Federation’s Economic Advisor
WILL A SHOT IN THE ARM RESCUE HOSPITALITY? ANDREW WEBB ON WHY THE INDUSTRY NEEDS AN INJECTION OF HELP. The Covid-19 pandemic has wreaked absolute devastation across our society. The human cost is difficult to comprehend, both in the tragic loss of life and in the impact on livelihoods. The associated mental health impact of lockdown and career insecurity is a significant issue in the mix. One of the most visible clues on the impact on livelihoods comes via the hospitality sector. A year ago, the sector was celebrating that Northern Ireland had welcomed 5.3 million visitors who spent a record-breaking £1bn. This activity was supporting some 70,000 jobs. 2020 was supposed to be another good year, consolidating considerable investment, with a firm footing on the road to becoming £2bn sector. Confidence across the sector was evident through new hotels and new products like the Game of Thrones studio tours all adding to a sense of a rapidly maturing tourism sector. Now look. The hospitality sector has been closed for more than half of 2020. Business tourists have gone, cruise ships didn’t dock, conferences and events
were cancelled, the summer season was virtually non-existent bar a muchreduced home audience. Even when able to trade, guest services were limited and numbers were constrained. Last July room occupancy in our hotels averaged 79%. This July the figure was is 25%. I am not here to argue a case for opening versus closing in the face of a pandemic, but the lack of clarity and ‘stop go’ trading strikes me as a torturous way to operate a business. Across society, despair has begun to turn to hope as the news of at least one vaccine securing approval. This is now being rolled out in Northern Ireland. The hope for beleaguered traders is that a successful vaccination releases a wave of pent up consumer demand that jumpstarts the economy. Is that enough? Will the sector in the form that we know it, be able to make it through to the other side? At this point, it’s very hard to know, but to ensure the sector bounces back, it needs its own shot in the arm. We already have the playbook for this. Don’t forget that the sector has blossomed over the past decade through some well
proven initiatives. Remember the Route Development Fund? Air transport links will be a key enabler of our tourism recovery. We need to provide visitors with easy ways to get here. Pre-Covid, we were losing key routes. It could be time to intervene again. Of course, providing routes is one thing but we also need to give people a reason to come here and then shout loudly about that. A major international promotion campaign and a series of international standard events must be nailed down. We’ve secured the MTV awards, Giro D’Italia and The Open before. More of those types events are crucial. It’s a time to invest in an industry than can deliver and offer a good return. We spent large parts of our year seeing family members online. With millions of our diaspora around the world, is it time to invite them all home for a visit. One big family reunion might be just what we need.