Our tourism industry is in very good health

As we head into the new year, Northern Ireland’s tourism industry can, despite many challenges, reflect on 2024 with quiet satisfaction and look forward to a new year with a renewed optimism and sense of confidence.

The arrival of Conor Murphy as minister for the economy in February, and the economic vision which he has set for the north, has been widely regarded as a positive development by the tourism industry.

As a sector, tourism is well placed to deliver a more sustainable, more productive, regionally balanced economy that can deliver good jobs.

Currently more than 70% of jobs within the tourism sector are located outside of the Belfast area and tourism plays a critical role in breathing life into our cities, towns and villages.

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In November, Nisra produced the first full set of tourism statistics for the north since the pandemic, and these would indicate that the industry has recovered well from Covid.

The total number of overnight trips in 2023 were up 3% on 2019 levels with spend rising by 20% to more than £1.2bn.

The recovery is not complete though as, for the most part, those increases have been primarily driven by a 74% uplift in visitors from south of the border.

All the data available to date would show that performance in 2024 is likely to end up on a par with 2023.

Not surprisingly, demand in the domestic market has been softer. High interest rates have reduced disposable incomes and the poor summer weather led to a hike in the number of people choosing to travel to sun destinations.

Those businesses and destinations which are most dependent on domestic visitors will have felt the impact of these trends.

Any softening of the domestic market though has been more than compensated for by the return of overseas visitors, with the US and GB leading the way.

Belfast is undoubtedly the primary beneficiary of international visitors, many drawn by the timeless appeal of Titanic Belfast, but Derry’s reputation continues to grow, helped in no small measure by Derry Girls and the city’s outstanding events programme.

Increase in turnover though does not equate to rising profits. Many businesses across the industry, particularly those in the hospitality sector continue to struggle with high energy costs, inflation and increasing labour costs.

The hotel sector on the other hand has been able to secure room rates almost 50% higher than in 2019, which has allowed many operators to report record profits this year.

Recent acquisition activity by local operators like the Galgorm Collection, McKeever Group and Andras House would suggest there is no shortage of confidence in the future growth of the tourism sector here. That optimism is also shared by major Irish players with the Inua and MHL

Collections entering the local market with exciting new brands such as the Voco and Moxi hotels.

The accommodation sector also continues to grow with the Bedford Hotel due to open next year and the JMK Group’s Aloft Aparthotel and Residence Inn due to open in 2026 alongside renovation and expansion plans at a number of properties across the north.

In September we enjoyed an enthralling Irish Open on the spectacular Royal County Down golf links and as we enter the new year, all eyes will turn to Portrush and the return of The Open golf championship in July.

Demand for the 250,000 tickets has been unprecedented and will see more than 80,000 external visitors arrive to attend the tournament.

Many of those will also spend time playing golf and experiencing what we have to offer as a holiday destination on the days for which they have been unable to secure tickets.

The international coverage that these major golfing events generate doesn’t just grab the imagination of golfers, it has also captured the attention of US investors.

The Texan based Links Collection will open the luxurious new Dunluce Lodge in February and AJ Capital’s recent acquisition of the Atlantic Hotel in Portrush, alongside their investment in the Adelphi and Slieve Donard Hotels, is a further vote of confidence in the North’s growth as a world class golfing destination.

There is however much more to our tourism offer than golf.

Since Covid, tourists increasingly want to engage with real life experiences that gives them a sense of the culture and heritage of the places they are visiting.

Across the north there has been an unprecedented growth in authentic, local tourism experiences which give visitors the opportunity to explore our way of life and engage with local people.

It is these attractions and activities that will deliver the future growth and regional balance envisaged in Conor Murphy’s economic vision.

Increasingly, our visitors wish to travel around Ireland in more sustainable ways and the new hourly rail service from Dublin and the fabulous new integrated transport hub at Grand Central Station will in time transform how visitors travel across the north.

Almost 13 years ago, an equally transformational project opened its doors to a chorus of criticism from the sceptics – “too big”, “too expensive”, “won’t achieve its visitor targets”, “will never make money”.

Titanic Belfast has just filed its annual accounts to March 31 2024, welcoming a record 813,000 visitors and recording profits before tax of £5.4 million.

The tourism industry would appear to be in good health and the new Transport Hub will make it even healthier - socially, environmentally and commercially.

• John McGrillen is chief executive of Tourism NI