Banks and non-bank lenders that participated in a survey for Deloitte's Outlook for Real Estate 2021 report believe that Ireland's rural hotels will bounce back from the impact of the COVID-19 pandemic quicker than hotels in cities.
Domestic Tourism Boost
As reported by The Irish Independent, the survey's participants believe that rural hotel will recover quicker than city hotels because they expect domestic tourism to recover quicker than international tourism, and rural hotels are believed to be more likely to benefit from domestic tourism than hotels in cities such as Dublin, which are believed to be more dependent on international and business visitors as well as on business generated by events such as concerts and sports events, which is not expected to recover before 2022.
Post-Recession Situation Reversed
Following the financial crash in 2008, Dublin hotels recovered quicker than rural hotels due to a boost by foreign direct investment and international tourism, while rural hotels struggled until domestic tourism demand increased in the second half of the last decade. However, it is expected that domestic tourism will recover quicker than international tourism going forward, resulting in rural hotels recovering quicker than city hotels.
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© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.