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The United States - Ireland’s second largest market |
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- Good morning America, how are you?
On the day when the United States elected its first African American President, we review this enormous market and its future potential for growth.But first, congratulations and best wishes to President-Elect Barack Obama. Not just America, but the World needs this man to be a truly great President. He inherits an ursine economic situation which is global in reach, and which can only be resolved effectively by remaking the US financial systems. That’s quite a challenge.
- In the decade from 1997 to 2007, US visitors to Ireland grew by 36% to reach 975,000 last year. They are estimated to have spent over €750 million, which was unchanged from the previous year. But while US visitors only account for 12.5% of visitors, they account for over 15% of total overseas tourism revenue.
- You think “what might have been” when recalling that in 2000 we had 958,000 US visitors, but that fell back by 21% following 9/11 and the economic downturn which followed, before recovering to earlier levels in 2006.
- Their average length of stay has dropped below 8 nights and the per capita spend has also dropped in recent years, due to the shorter stay and a weaker dollar. In fact the declining value of the dollar has almost certainly been hindering growth for some years. Just recall that in 2002 a Euro could be bought for 94 US cents, while earlier this year it cost almost $1.60. In recent weeks the dollar has strengthened to about $1.25, and there is some confidence that it may settle in the $1.30 to $1.35 range. That would be good news for travel to Europe.
- The other good news is that Americans really like Ireland. In a survey of Dream Destinations where they were asked for their preferred holiday destination, with money no object, Ireland came in fifth position (after Australia, Italy, Great Britain and France).
- Direct access is a major factor in driving US business to Ireland, and in this regard there are excellent services available to Shannon, Dublin and Belfast by Aer Lingus, Delta, US Air, Continental and American Airlines. Cities with non-stop services include New York, Newark, Philadelphia, Washington DC, Orlando, Boston, Atlanta, Chicago and San Francisco.
- Economic conditions are such that 2008 will show the first decline in US visitors since 2002, and it is difficult to see any growth in 2009. Much will depend on the timing of economic recovery. But the US is a vast market, consider this, 64 million US residents travelled abroad last year and spent $105 billion. Over 12 million came to Europe. Ireland must fight to retain its share of this vast and valuable market.As sure as day follows night, economic recovery will come to the United States, and with it renewed growth in international travel. This will always remain a key market.
- November 5th 2008 ITIC
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on Wednesday, November 5th, 2008 at 10:05 am and is filed under General, Prem Group Ireland.
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