Start a tourist accommodation business
How to start a tourist business in Northern Ireland, including the tourism economy, key considerations, challenges and certification.
Owning and running your own tourist accommodation business can be very rewarding. There are a number of things you should consider before starting.
Accommodation providers use similar skills and principles to entrepreneurs in the rest of the business world, and their businesses are equally demanding.
If you are interested in setting up a tourist accommodation business your chances of success will depend on how resourceful you are. You must be committed to providing excellent customer service and a memorable visitor experience. By providing enhanced facilities, amenities and additional services, you are more likely to obtain a higher occupancy rate for longer periods and generate profits. You will need drive and determination.
The tourist economy in Northern Ireland
Key facts and figures about the tourism industry in Northern Ireland.
In 2019, tourism in Northern Ireland attracted 5.3 million visitors who spent £1 billion.
In the past number of years the Northern Ireland tourism industry has benefited from significant major events such as The Open at Royal Portrush in 2019.
Future opportunities will arise with the growing demand for screen tourism following the worldwide success of programmes like Game of Thrones and films such as Belfast.
Northern Ireland has also benefited from other significant tourism developments including the opening of new attractions such as the Game of Thrones studio tour.
Key statistics
Tourism statistics released by the Northern Ireland Statistics and Research Agency (NISRA) for 2019 show:
- Overnight trips to Northern Ireland by external visitors were estimated to be 3 million.
- The growth in trips was largely driven by holidays, as there were 322,000 more holiday visitors compared with 2018. The closer to home markets (NI and ROI) increased by 17%, while holiday visitors from GB and Other Overseas grew by 7%.
- Domestic performance was strong, with NI residents taking more trips, notably holidays, in NI and spending more.
Legal and licensing help for new tourist accommodation businesses
You should be aware of the various legal considerations before starting up a tourist accommodation business, such as certification.
There are a number of legal considerations for tourist accommodation providers. You must comply with all relevant legislation, in particular the .
Several organisations exist that can offer advice and guidance that will assist you in starting a tourist accommodation business.
Tourism NI
The can help you with mandatory tourism accommodation certification guidance and complying with relevant laws.
Invest NI Tourism Team
The can advise you on the commercial aspects of your development.
Financial assistance may be available to established businesses or to help develop new accommodation businesses.
You can contact the Invest NI Tourism Team on Tel 0800 181 4422 or email tourism@investni.com.
Planning authorities
You should also speak with your local at the outset of the project to find out if you will encounter any planning problems. A clear understanding, at an early stage, of planning issues relating to your project may save you time and money.
Your local council
The tourism officers of your local council will have a detailed knowledge of the tourism situation in your local area and will be able to provide information about council schemes or upcoming events, activities and initiatives planned for your area. Find your local council in Northern Ireland.
Rural projects
From time to time the offers 91Ïã½¶»ÆÉ«ÊÓÆµ for the development of rural tourism accommodation projects.
Categories of accommodation business
The eight accommodation categories in Northern Ireland including hotel, guesthouse, bed and breakfast and hostel.
Under the Tourism (NI) Order 1992, there are eight categories of accommodation. Each of these types of accommodation must be by Tourism NI.
What are the eight categories of tourism accommodation in Northern Ireland?
The different types of tourism accommodation include:
Hotel
A hotel is an establishment with a minimum of 15 double bedrooms (all of which must be en suite) that can provide breakfast, lunch, and an evening meal for guests.
Guesthouse
A guesthouse is an establishment with a minimum of three double bedrooms (all of which must be en suite) and can provide both breakfast and an evening meal.
Bed and breakfast (B&B)
A B&B offers overnight accommodation whilst also providing guests with a cooked breakfast. There is no requirement to provide an evening meal and only one guest bedroom is required.
Hostel
A hostel provides overnight budget accommodation for guests in shared rooms or dormitories. A hostel should have shared or en suite bathroom facilities, as well as a common kitchen and lounge area.
Self-catering
a self-catering unit is a self-contained apartment, house, cottage, etc which provides furnished accommodation for visitors including sleeping accommodation and catering facilities.
Bunk house/Camping barn
A bunk house or camping barn offers simple overnight shelter, often in remote locations with limited facilities and services.
Campus accommodation
Campus accommodation is provided by educational establishments for their students and made available to individuals, families or groups at certain times of the year, typically Easter, summer and Christmas holidays.
Guest accommodation
guest accommodation is primarily focused on the provision of en suite bedrooms, for example, restaurants and pubs that wish to provide accommodation for visitors.
Tourism NI offers for each of these categories. If you are an existing tourist accommodation provider and you wish to change your category, eg from a B&B to a guesthouse, you can .
Certifying a new accommodation business
If you are starting up a new tourist accommodation business such as a hotel or bed and breakfast, you must apply to get certification from Tourism NI.
To offer tourist accommodation in Northern Ireland, you must have a certificate from Tourism NI. It is illegal to offer tourist accommodation without certification.
Planning permission
Before seeking certification it is important to ensure you have met planning guidelines if you have had to make any building adjustments to the premises you intend to use for your accommodation business. See local council contact details in Northern Ireland.
Certification
Certification is mandatory for most establishments offering visitor accommodation in Northern Ireland. You can to be certified by Tourism NI.
A fee for the inspection is payable in advance for the first inspection. Statutory inspections then take place once every four years although Tourism NI can undertake an inspection at any time. The purpose of inspections is to ensure that the minimum requirements appropriate to the category continue to be met. If not, Tourism NI may add conditions to the certificate or revoke it.
A certification officer will conduct an inspection to determine if the premises can be allocated to the chosen category. If a certificate is issued, your premises becomes a Certified Tourist Establishment and you may start trading.
Quality assessment and star ratings for new accommodation businesses
Tourism NI runs a voluntary quality grading scheme for accommodation businesses – find out how to get your new business graded to boost your reputation.
Tourism NI runs a for accommodation businesses in Northern Ireland. Other UK National Tourist Boards and the AA also operate the scheme. This scheme is open to hotels, B&Bs, guesthouses, guest accommodation, hostels and self-catering accommodation.
The scheme focuses on enhancing the visitor experience across all visitor touchpoints. In addition to providing a star rating which helps visitor decision making, the scheme also provides businesses with advice and 91Ïã½¶»ÆÉ«ÊÓÆµ
Having a quality rating will give your premises credibility and visibility which is vital in today's competitive market.
Your business may receive up to five stars, based on a range of criteria, including cleanliness, presentation and service. Your business is rated by an assessor who in some instances will visit without making themselves known.
Please note that this scheme is voluntary, it is not a legal requirement and you are under no obligation to apply for quality grading.
Entrepreneurship for tourist accommodation providers
Accommodation providers can benefit from strategic planning and taking an entrepreneurial approach to running the business.
With the variety of choice available to consumers from hotels, B&B's, caravan parks, guest houses or self catering accommodation it is important that tourist accommodation businesses take an entrepreneurial approach to generate profits or grow.
Taking an entrepreneurial approach in the tourist accommodation industry could include exploiting opportunities presented by increased visitor numbers due to major events, festivals, tourist attractions or celebrations.
Potential investors in tourism accommodation should be careful that there is a sustainable demand for more accommodation - beyond one event or one year. As with any investment, investors should look for a reasonable return on investment. The investment should only be made when a real tourism market need has been identified and not just because a building or site has become available for development.
Entrepreneurship can be encouraged in business by being forward thinking, well organised, responsive to change and by encouraging staff to think outside the box. In addition to this businesses can cut out bureaucratic processes, simplify decision making, take a structured approach to financial management reward staff for new ideas and business improvement suggestions.
Factors to consider
When assessing options for entrepreneurial opportunities, consideration should be given to the following:
- current accommodation provision
- occupancy levels
- attractions and events
- research and trends
- strategic tourism policy
- pricing levels of competition
Support available for accommodation businesses
Help, 91Ïã½¶»ÆÉ«ÊÓÆµ and advice for tourist accommodation providers such as hotels and guesthouses, including Invest NI and Tourism NI.
There are a range of organisations who can provide 91Ïã½¶»ÆÉ«ÊÓÆµ for tourist accommodation businesses.
Invest Northern Ireland Tourism Team
The Invest Northern Ireland (NI) Tourism Team can advise you on the commercial aspects of your tourism accommodation development.
Financial assistance may be available to established businesses or to help develop new accommodation businesses.
Invest NI may also offer a wide range of advice and guidance to tourism accommodation businesses including:-
- IT and e-business issues
- training
- design and marketing
- market research information
- energy and water efficiencies
You can contact the Invest NI Tourism Team on Tel 0800 181 4422 or email tourism@investni.com.
Other 91Ïã½¶»ÆÉ«ÊÓÆµ organisations
You can also seek 91Ïã½¶»ÆÉ«ÊÓÆµ from other organisations such as Tourism NI, your local council and local planning authorities. See legal and licensing help for new tourist accommodation businesses.
Business 91Ïã½¶»ÆÉ«ÊÓÆµ networks
Business networks are of paramount importance, they will assist you in growing your business. You can keep up to date with the latest industry developments and learn best practices from your peers.
The following organisations are networks of accommodation, hospitality and tourism businesses:
Additional 91Ïã½¶»ÆÉ«ÊÓÆµ
Tourism NI offers a range of 91Ïã½¶»ÆÉ«ÊÓÆµ for tourist accommodation businesses including:
- Northern Ireland marketed as a tourism destination via Tourism NI's consumer website .
- Access to which includes roadshows, masterclasses, business insights and conferences
Starting a tourist accommodation business - Kribben Cottages (video)
Kribben Cottages explain how they started a four star self-catering accommodation business at the Mourne Mountains in County Down.
Kribben Cottages offer self-catering accommodation close to the Mourne Mountains in County Down. The cottages opened in 2014 and have achieved a four-star rating from Tourism NI. They have also received Green Tourism certification.
Myrtle Haugh, Property Manager at Kribben Cottages, highlights how they started the business. She explains how they got Tourism NI certification, including the grading process. Myrtle also discusses they found a niche in the market by researching tourism in Northern Ireland.