Culloden Winning Cross Border Battle

Hotels across NI are getting an early Christmas present.

Over the summer, hotels were already said to be 'weathering the economic downturn' better than their counterparts in the Irish Republic, and now, things are looking up again.

Anecdotal evidence at the five-star Culloden Hotel outside Belfast suggests that trade from the Irish Republic is filling more and more of the luxury rooms and suites.

One recent visitor couldn't fail to notice the number of Irish accents, both business and leisure users.

"Long after business users would be on the road, Dublin and Cork accents were evident among clients having more leisurely breakfasts - and even mid-week, many had their families with them, representing proper 'holiday' trade," said the local hotel customer.

That's a plus for the Hastings Hotel Group and for the fast growing NI hotel sector in general, which, despite a 12% dip in profits, was shown in July to be outperforming hotels in the South - where the average reduction in profits was 25%.

That was according to the annual survey by Belfast-based ASM Horwath, chartered accountants and hotel, tourism and leisure consultants.

The Northern Ireland Tourist Board (NITB) has argued that a virtual cross border shopping bonanza that is taking place is just one side of the 'pound coin', partly as a result of the strong euro.

The NITB's two-year campaign to increase overnight trips from the Republic seemed to have paid off last year - visitors were up by 14% to 45,000, with the number of holiday trips up 26% and people staying even longer with an average stay of two-and-a-half nights - with much more expected in 2009.

Kathryn Thomson, Chief Operating Officer at NITB, said: "Particularly pleasing is the significant rise in pure holiday visitors from the Republic of Ireland, demonstrating that visitors from this market are not simply here for shopping and day trips.

"More and more visitors are coming here to experience the many attractions that Northern Ireland has to offer," the NITB said.

Speaking on BBC Radio Ulster last week, travel expert Simon Calder said: "Northern Ireland offers a remarkable diversity of attractions, with the reopening of Belfast's City Hall and Ulster Museum also giving the city's tourist potential a boost."

Cultural attractions are indeed important. Julie Maguire, Marketing Director at Hastings Hotels said it was Belfast Festival at Queens' preferred luxury hotel partner.

"There were special overnight rates for the festival, and from now until Christmas, clients will be 'spoilt for choice' with our range of Christmas Party Nights, festive dining options, special residential packages and New Year's Eve Gala events."

She expects to see increased growth across the whole group - Belfast's Stormont and Europa hotels, the luxury Slieve Donard and five-star Culloden and the group's Ballygally Castle and Londonderry's Everglades.

As such established NI hoteliers continue to see increased cross-border business, there are many other developments in the sector.

A planned Titanic-themed hotel in Belfast, a £14m 80-bedroom three-star hotel in Downpatrick and Belfast's Ten Square plans to transform the Donegall Square South property from a 23-bedroom to a 108-bedroom hotel represent just a few of the major projects.

This early Christmas bonus is assured for both NI retailers and hoteliers alike as a border invasion picks up momentum.

However, the trade is hitting the Irish economy hard, but Tanaiste and Enterprise Minister Mary Coughlan said last month that no decisions on areas like excise duty would be announced until the Budget in December.

Then, just this week, a survey published in Dublin has revealed an extensive half-decade decline in pubs and restaurants, according to a major drinks organization.

The Drinks Industry Group of Ireland (DIGI) 'Survey of Licensed Premises 2009' recorded a period of decline in the on-trade in Ireland that had begun in the early years of the decade, and which has accelerated sharply over the last 18 months.

DIGI Chairman, Kieran Tobin, said that the economic downturn and lifestyle changes were combining with high alcohol taxes and a major increase in cross-border trade to put the wider drinks industry under immense pressure.

See: Cross-Border Visitors Boost NI Tourism

See: Bumper Christmas In Store For NI

See: Survey Shows Decline In Pubs And Restaurants

(BMcC/KMcA)