Hoteliers in Northern Ireland now view July as a "lost month", according to the Belfast developers behind a £15 million sterling (€25 million) hotel due to open next month. Andras House will open the first Ramada Hotel, the North's latest multi-million pound four-star hotel, on the outskirts of Belfast within weeks.
But, says Andras House director Mr Ramesh Rana, it expects business at its other hotels in the city to drop sharply during July.
"It should be one of the busiest times of year for us but we find that if hotels can just break even this month, then it is a major achievement," he said.
Although it has been relatively peaceful this year compared to last year when nationalists and loyalists clashed in Belfast before the North's annual July 12th holiday, there are few tourists in the city.
Many tour operators avoid Northern Ireland in July because of their experiences in previous years.
Andras House operates two hotels in Belfast, Renshaws and Express Holiday Inn. Mr Rana says neither will be operating at even half capacity. "The whole month of July does not exist except as a cost. Businesses lose tens of thousands of pounds this month in Northern Ireland - for us the potential profit is likely to be zero."
One of the larger Northern Ireland based regional hotel groups, the company plans to add 120 bedrooms to its existing 140 when it opens the Ramada, which will be operated under franchise from Marriott International.
Andras House is also developing the £40 million Lincoln Centre in the heart of Belfast.
The development, which is under construction, will be the location for a second 260-bedroom Ramada Hotel and a 250-bedroom budget inn hotel.
Mr Rana says the company's new £15 million hotel reflects its long-term confidence in Belfast's economic potential.
"Andras House is 20 years old this year. It was established by my father Diljit Rana and since 1981 we have invested heavily in this city. We plan to continue our investment and although there are issues during July, Belfast is a good place to do business and to invest in and we firmly believe it is going to get better," Mr Rana adds.
He says the difference between Belfast in 1981 and Belfast in 2001 is testimony to the city becoming more international and more competitive.
Mr Rana also believes there is evidence that investors are prepared to take risks they would not have contemplated even 10 years ago.
"You just have to look around Belfast to see how many more branded hotels and businesses there are - from the Holiday Inn to the Hilton Hotel - and that reflects where the city is going." But he believes that without long-term political stability, the city cannot fulfil its potential.
"The confidence factor is still missing from overseas investors. We have seen a lot of investment coming in from the Republic because there is a better understanding of Northern Ireland's potential there, but there is still some reluctance from those not rooted in Northern Ireland," Mr Rana added.
