The Economic Contribution of Hotels & Guest Houses to the Irish Economy Presentation to Irish Hotels...
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The Economic Contribution of The Economic Contribution of Hotels & Guest Houses to the Hotels & Guest Houses to the Irish Economy Irish Economy Presentation to Irish Hotels Federation Presentation to Irish Hotels Federation Peter Bacon & Associates Peter Bacon & Associates ECONOMIC CONSULTANTS ECONOMIC CONSULTANTS 27 February 2001 27 February 2001 Ormonde Hotel Ormonde Hotel Kilkenny Kilkenny
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Transcript of The Economic Contribution of Hotels & Guest Houses to the Irish Economy Presentation to Irish Hotels...
The Economic Contribution of Hotels & The Economic Contribution of Hotels & Guest Houses to the Irish EconomyGuest Houses to the Irish EconomyThe Economic Contribution of Hotels & The Economic Contribution of Hotels & Guest Houses to the Irish EconomyGuest Houses to the Irish Economy
Presentation to Irish Hotels FederationPresentation to Irish Hotels Federation
Peter Bacon & AssociatesPeter Bacon & AssociatesECONOMIC CONSULTANTSECONOMIC CONSULTANTS
27 February 200127 February 2001
Ormonde Hotel Ormonde Hotel
KilkennyKilkenny
Structure of the PresentationStructure of the Presentation
Conclusions Conclusions Summary Measures of Economic ImpactSummary Measures of Economic Impact Structural Characteristics of Business Structural Characteristics of Business
Influencing these MeasuresInfluencing these Measures Approach & Methodology Underlying EstimatesApproach & Methodology Underlying Estimates Regional Analysis of ResultsRegional Analysis of Results Analysis according to Classification of HotelsAnalysis according to Classification of Hotels
ConclusionsConclusions
Hotel & Guest House Revenue leads to over £1.5Billion Hotel & Guest House Revenue leads to over £1.5Billion contribution to GNP, or 2.2 per centcontribution to GNP, or 2.2 per cent
Since 1992, direct contribution has been maintained Since 1992, direct contribution has been maintained and total contribution is upand total contribution is up
Employment intensity is increasing , direct employment Employment intensity is increasing , direct employment 46,822 FTE & over 76,500 in total46,822 FTE & over 76,500 in total
Regional employment role very importantRegional employment role very important Future lies in raising importance of room servicesFuture lies in raising importance of room services Regulatory regime appears anachronisticRegulatory regime appears anachronistic
Hotels & Guest Houses Annual Hotels & Guest Houses Annual Contribution to GNP (Per cent)Contribution to GNP (Per cent)
0
0.5
1
1.5
2
2.5
Direct Impact Direct & IndirectImpact
Direct, Indirect &Induced
Direct, Indirect,Induced &
GovernmentInteracting
Impact on GNP
0
0.5
1
1.5
2
2.5
Direct Impact Direct & IndirectImpact
Direct, Indirect &Induced
Direct, Indirect,Induced &
GovernmentInteracting
Impact on GNP
Hotels & Guest Houses Contribution to Hotels & Guest Houses Contribution to Employment (Numbers of FTEs)Employment (Numbers of FTEs)
010,00020,00030,00040,00050,00060,00070,00080,00090,000
Direct Impact Direct & IndirectImpact
Direct, Indirect &Induced
Direct, Indirect,Induced &
Government
Employment Impact
010,00020,00030,00040,00050,00060,00070,00080,00090,000
Direct Impact Direct & IndirectImpact
Direct, Indirect &Induced
Direct, Indirect,Induced &
Government
Employment Impact
Model of Economic Impact of Hotel & Model of Economic Impact of Hotel & Guest House ActivityGuest House Activity
Payments for Hotel ServicesPayments for Hotel Services
Salaries, Profit
Purchases of Goods & Services
Purchase of inputs & services
Salaries, Profit & purchases of Goods
& services
Taxation Payments
Spending by Government on goods & services
Multipliers Used to Estimate GNP & Multipliers Used to Estimate GNP & Employment Impacts Employment Impacts (Effects in £Million & FTE (Effects in £Million & FTE
Jobs per £1Million of Hotel Revenue)Jobs per £1Million of Hotel Revenue)
GNPEffect
(£Million per£1Million)
EmploymentEffect
(FTE Jobs per£1Million)
Direct 0.48 36.0Direct +Indirect 0.78 52.3Direct+ Indirect+Induced 1.01 54.7Direct+ Indirect+Induced+Government 1.36 59.7
Limitations of Multiplier AnalysisLimitations of Multiplier Analysis
Requires very detailed database, inevitably Requires very detailed database, inevitably dateddated
Multipliers assume the supply side is elastic, Multipliers assume the supply side is elastic, not generally true and certainly not the not generally true and certainly not the position in relation to current labour marketposition in relation to current labour market
Difficulties associated with attributing Difficulties associated with attributing spending to differenent types of servicespending to differenent types of service
Distribution of Hotel Revenue by Department Distribution of Hotel Revenue by Department Classified by Grade of Hotel (per cent)Classified by Grade of Hotel (per cent)
0
10
20
30
40
50
60
5* 4* 3* 2* 1* Other Total
Room Food Beverage Other
0
10
20
30
40
50
60
5* 4* 3* 2* 1* Other Total
Room Food Beverage Other
Distribution of Hotel Revenue by Source Distribution of Hotel Revenue by Source Classified by Hotel Grade (Per Cent)Classified by Hotel Grade (Per Cent)
0
10
20
30
40
50
60
70
5* 4* 3* 2* 1* Other Total
Foreign Domestic
0
10
20
30
40
50
60
70
5* 4* 3* 2* 1* Other Total
Foreign Domestic
Distribution of Hotel Bedrooms By Hotel Distribution of Hotel Bedrooms By Hotel Grade & By Region (Per Cent)Grade & By Region (Per Cent)
0
10
20
30
40
50
60
70
Dublin SouthEast
SouthWest
Shannon West NorthWest
MidlandsEast
Country
5* 4* 3* 2* 1* Other
0
10
20
30
40
50
60
70
Dublin SouthEast
SouthWest
Shannon West NorthWest
MidlandsEast
Country
5* 4* 3* 2* 1* Other
Distribution of GNP Impact by Region Distribution of GNP Impact by Region (Per cent)(Per cent)
0
5
10
15
20
25
30
35
Dublin SouthEast
SouthWest
Shannon West NorthWest
MidlandsEast
% Contribution to GNP Impact
0
5
10
15
20
25
30
35
Dublin SouthEast
SouthWest
Shannon West NorthWest
MidlandsEast
% Contribution to GNP Impact
Distribution of GNP Impact by Hotel Distribution of GNP Impact by Hotel Grade & Per Room (per cent)Grade & Per Room (per cent)
0
5
10
15
20
25
30
35
40
45
50
5* 4* 3* 2* 1* Other
GNP Impact by Grade GNP Impact BY Grade per room
0
5
10
15
20
25
30
35
40
45
50
5* 4* 3* 2* 1* Other
GNP Impact by Grade GNP Impact BY Grade per room
Regional Distribution of Employment Regional Distribution of Employment Impact (Per cent)Impact (Per cent)
0
5
10
15
20
25
30
35
Dublin South East SouthWest
Shannon West North West MidlandsEast
% Contribution to Employment Impact
0
5
10
15
20
25
30
35
Dublin South East SouthWest
Shannon West North West MidlandsEast
% Contribution to Employment Impact
Distribution of Employment Impact By Distribution of Employment Impact By Grade of Hotel & By Hotel Room (Per cent)Grade of Hotel & By Hotel Room (Per cent)
0
5
10
15
20
25
30
35
40
45
50
5* 4* 3* 2* 1* Other
Employment Impact by Grade Employment Impact BY Grade per room
0
5
10
15
20
25
30
35
40
45
50
5* 4* 3* 2* 1* Other
Employment Impact by Grade Employment Impact BY Grade per room
SummarySummary
Significant impact on GNP which has been Significant impact on GNP which has been sustained during expansion of 1990ssustained during expansion of 1990s
Employment intensity has increased in recent Employment intensity has increased in recent yearsyears
Significant contributor to employment, Significant contributor to employment, especially regional aspectespecially regional aspect
Future growth requires focus on room Future growth requires focus on room servicesservices
Regulatory regime an impedimentRegulatory regime an impediment
