While most forecasts suggest that the euro should strengthen against the dollar and sterling, the current rate has not appreciated significantly against these currencies compared to this time last year. Other factors such as foot and mouth disease and the slow down in the US economy are more likely to impact on tourism flows than currency movements in the short-term.
On the other hand, I understand from Bord Fáilte that a recent survey suggests that the Irish tourist industry and the hotel sector, in particular, have experienced price increases above the general levels of inflation. At a recent Irish Tourist Industry Confederation dinner, I referred to this worrying trend and underlined the importance of all economic operators taking appropriate measures to maintain and improve competitiveness.