Hotels here will spend about €250 million refurbishing their properties this year, in what is an increasingly competitive market, the Irish Hoteliers Federation annual conference in Killarney has heard.
The figures are based on a survey carried out among members earlier this month.
While global and national economic headwinds is a concern for members, the survey also found that more than three quarters of Irish hoteliers plan to increase levels of investment.
Guest bedrooms, and common areas including restaurants and bars will be the target of the refurbishment.
However, other areas will also see investment including training and people development, environmental sustainability, and the adoption of new technologies, such as artificial intelligence (AI).
“Continued investment in our product and customer experience is a key priority for hotels over the coming year as we respond to evolving guest expectations in what remains a highly competitive tourism landscape,” IHF president Michael Magner said.
Investment was “absolutely essential” for the further development of Ireland’s tourism and hospitality product and position internationally as a leading destination for visitors and holidaymakers,” Mr Magner said.
Renewable energy solutions, efficiency measures and reducing food waste were among the environmental sustainability projects being considered, the IHF said.
Most hotels are looking at upskilling their employees in leadership and management development, supervisory skills, along with investing in entry level skills.
AI was increasingly being explored also for its potential to enhance guest experience, the survey revealed.
Some 43 per cent of hoteliers said they currently use AI technology in some form across their hotel operations. A further 41 per cent say they plan to explore the adoption of AI technologies while, of those that currently use AI, 54 per cent plan to increase investment in this area over the next 18 months.
Results indicate that the top areas for the adoption of AI by Irish hotels are customer service, revenue management, personalised marketing and energy management.
The conference on Tuesday will hear from a range of speakers addressing the potential of AI, air access and how Ireland handles events such as the Ryder Cup
It will also hear from Conall MacCoille, chief economist with Bank of Ireland on “the economic outlook in a fragmented global order”.
As many as 94 per cent of hoteliers are concerned about the outlook for the global economy, the IHF survey earlier this month found. Forward bookings for hotels are down €100 million for 2025 compared with this time last year.
Overall occupancy in hotels was down 2 per cent last year on the previous 12 months , a trend that is set to continue in 2025, especially in hotels outside Dublin.
This combined with rising costs is affecting business sentiment, Mr Magner said.
Irish MEPs Sean Kelly, Billy Kelleher and Barry Cower are to address the conference on EU input into Ireland’s tourism sector.
