The Chief Executive of the Irish Hotel Federation (IHF) has blamed disappointing initial returns on tourism figures in 2002 on the global economic situation.

Preliminary estimates for 2002 indicate that overseas visitor figures climbed slightly, by 2% on 2001, however corresponding hotel room nights decreased by some 3% for the same period.

Commenting at the publication of the IHF's 2002 Annual Report and Review, Chief Executive John Power said that continued global economic unrest was to blame for visitor numbers remaining low when compared with figures from just two years ago.

He said that with over 145,000 people now employed in tourism, the sector was "facing a challenging 2003" and added that under the current international economic conditions the protection of these employees positions was paramount.

However, on a more positive note, the estimates indicated an increase in home holidays last year – up by 12-15%.

"Last year saw an estimated six million visitors to Ireland but the positive trend of domestic market holidaying at home and taking short breaks assisted balanced out what could have been a difficult year for the sector," said Mr Power.

Following disappointing figures in 2001, the industry had anticipated a substantial improvement in 2002, but that expectation had been foiled by an unsettled global economy had stalled the tourism industry recovery.

In particular, there was a reduction in visitor numbers especially from the key North American market, which appeared to have fallen by 10% to 815,000.

The IHF also cited the 20% reduction in direct airline routes to Ireland from North America as a contributory factor in the 50,000 fewer arrivals from this particularly lucrative market in 2002. There are hopes that this situation will be rectified this year when Aer Lingus relaunch the Baltimore to Shannon - Dublin route and US airways introduce new routes from Philadelphia to Shannon and Dublin.

Closer to Ireland, British arrivals rose by 9% to 3.7 million and mainland Europe arrivals were up by 3% to 1.4 million.

This rise in figures from Britain and Europe could be attributed in part to a recovery in the early part of the season from the 2001 low levels caused by the impact of foot and mouth. The availability of good low-fare air and sea access on these routes were also cited as major contributors.

According to the survey, there are now 851 hotels with 42,869 bedrooms and 479 guesthouses with over 5,300 rooms.

The number of people employed in hotels and guesthouses in 2002 remained at 57,000.

(SP)