Business

Northern Ireland's hotels 'barely quarter full' since reopening

Occupancy levels in Belfast hotels during July was just 21.4 per cent, new figures reveal
Occupancy levels in Belfast hotels during July was just 21.4 per cent, new figures reveal Occupancy levels in Belfast hotels during July was just 21.4 per cent, new figures reveal

SIX weeks since bedrooms reopened to guests, Northern Ireland's hotels are barely quarter full, with Belfast properties particularly fragile, industry figures show.

Overall occupancy in July was running at just 24.9 per cent across the whole of the north, with an average room rate of £78.13.

And Janice Gault, head of the NI Hotels Federation (NIHF), conceded: "It’s difficult to imagine the extent of the challenge of opening an entire sector with limited bookings and no blueprint for trading during a pandemic."

The figures make grim reading for a sector which has invested more than £1 billion in its stock in the last two decades (there are currently 145 hotels and 9,500 rooms across the north) and which supports 15,000 direct and indirect jobs.

Some 85 per cent of the north's hotels stock is currently operational, though many properties are operating on a shorter week basis to adhere to social distancing measures.

New performance figures from independent benchmarking company STR reveal that traditional holiday spots like Fermanagh, the North Coast and the Mournes were the best performers for occupancy, though in Derry the figure was 31.9 per cent and in Belfast just 21.4 per cent.

But data for the first two weeks in August shows stronger trading in Belfast, where occupancy levels lifted to 55.9 per cent.

"These figures highlight the perilous situation the sector finds itself in given that the same period last year saw an occupancy level of 87.9 per cent," Ms Gault said.

"On a positive note, there has been a significant increase in visitors from south of the border, and the outlook for the remainder of August looks better.

"Tourism NI has been running multi-platform promotional campaigns north and south. The continuation of this activity is vital as it keeps Northern Ireland front of mind when the domestic visitor is considering short break options."

She added: "It's only when you look at the year-to-date figures that you see the stark truth laid bare - all metrics are down with a staggering 53 per cent drop in occupancy.

"And there are fears of local closures as clusters emerge and the threat of a second wave. This, coupled with a limited geographical base from which to attract business, is greatly exercising the minds of local hoteliers."

With furlough support coming to an end on October 31, it seen as a cliff edge for the industry.

"Having invested in the region of £600 million over the last five years along, it would be a shame to see this go to waste," Ms Gault said.

"We hope some targeted support can be given to the tourism sector by the Treasury on a national basis and that additional measures will be explored by the Stormont Executive, such as the reduced 5 per cent VAT reduction remaining, a reduction in business rates for the coming year and support for staff over the winter.

"There is little doubt the winter will be tough. Last year tourism spend was around £1 billion, but we'll be lucky to reach half of this.

"Hotels are experiencing a difficult task of balancing increased costs, along with health and safety issues, with the desire to trade and return to some level of viable business.

"But at least the industry remains open and hoteliers are trading, albeit at a reduced level, and are keen to contribute to the economy in a positive way."