The accommodation sector has lost over half of its estimated market size due to the impact that COVID-19 has had on the travel and tourism sector. COVID-19 introduced restrictions that reduced the number of visitors entering the Irish market, with the accommodation market relying heavily on these visitors.

As international travel is still slowly building up, Irish accommodation companies have turned their focus onto the domestic market to encourage local consumers to take a staycation. There are still concerns surrounding COVID-19 as a third of Irish consumers are avoiding booking accommodation out of fear of contracting the virus. It is important that companies are proving to customers that they have implemented measures to ensure safety during their stay to help the accommodation market gain business and begin its recovery.

• The impact of COVID-19 on the accommodation sector

• The impact that rising unemployment will have on accommodation

• Reasons why consumers are avoiding accommodation

• What types of accommodation consumers have used

• The types of accommodation consumers plan to use and if COVID-19 will impact their behaviour.

This update on the impact that COVID-19 is having on the market was prepared on 15 December 2021.

In RoI, the first COVID-19 cases were confirmed in February, though numbers were small with the first death related to COVID-19 not recorded until 13 March 2020. One day previous, RoI was put into lockdown on 12 March.

The first COVID-19 cases were confirmed in the UK at the end of January, with a small number of cases in February. As the case level rose, the UK government ordered the closure of non-essential stores on 20 March, which was adopted in NI and the region went into lockdown.

Lockdown eased in July 2020 but both NI and RoI were placed under tighter restrictions as a second wave emerged. In October 2020, NI was placed in a four-week lockdown with foodservice closures (excluding takeaway), and a continuation of these measures occurred in November. In RoI, a lockdown was introduced in October 2020 and lasted until the end of November 2020 (six weeks) with foodservice and non-essential retail closed.

In December 2020, both NI and RoI were placed into another restrictive lockdown (including curfews, inter-county travel restrictions and non-essential retail and foodservice closures excluding takeaway) which continued until February 2021. In April 2021 restrictions were eased with the hope of foodservice opening again in May 2021.

In July 2021, RoI allowed indoor dining in bars and restaurants to consumers who showed their vaccination card on entry. Across Ireland, both NI and RoI have announced that nightclubs would be opening from 1 November 2021.

However, the RoI market has recently announced that from 18 November 2021, there will be a curfew on nightclubs, bars and restaurants and they must close at midnight, followed by a working-from-home order. The NI market also announced that by 13 December 2021, passport vaccines are mandatory to enter hospitality locations, eg nightclubs, bars and cinemas. There is also the alternative to show a negative lateral flow test taken in the last 48 hours, or proof that consumers have recovered from a positive PCR test in the past 30-180 days.

This Report will examine the hotel sector within the Irish tourism industry. This includes hotels (all types) and resorts in Northern Ireland (NI) and the Republic of Ireland (RoI) only. For the purposes of this Report, a hotel is defined as an establishment that provides paid lodging on a short-term basis and with limited additional facilities for travellers and tourists. A resort is a self-contained establishment that aims to provide most of a traveller’s needs, such as food, drink, sports, entertainment, and spas and beauty treatments.

This Report only looks at other accommodation providers from a competitive viewpoint such as bed and breakfast accommodation, guesthouses, caravans, camping, rented accommodation, hostels, and staying with a friend or relative. Although the booking and use of accommodation services for business purposes are discussed, this Report will focus primarily on the booking and use of accommodation services for leisure purposes.

Data in this Report includes general information on the tourism industry for both NI and RoI, but its main focus is upon the hotel sector of the market. While this Report makes mention of business travellers where appropriate, it focuses mainly on leisure travellers and holidaymakers.