The Dublin Airport passenger cap is “not serving” Irish hotels amid a drop in bookings for 2025, Irish hoteliers have said.

94% of Irish hoteliers are concerned about the global economy amid rising costs and a drop in bookings in 2024.

On Newstalk Breakfast, Irish Hotels Federation CEO Paul Gallagher said the summer passenger cap is causing uncertainty amongst the airline business and spilling over into the tourism industry.

“To be honest, there are some changes in tourism trends - that pent up demand after COVID-19 has certainly faded back slightly,” he said.

“There's less events on, generally, around Ireland this year, so that's going to affect demand.

“But we're also seeing the airport cap, I mean, that obviously is going to play in because we're operating currently under a cap, which is the winter cap, and we have yet to resolve the summer cap.

“So anything that causes uncertainty for the airline business and deciding where to place their aircraft and develop routes, that is going to impact us.”

Luxury hotel room. Image: Alamy

Mr Gallagher said airlines aren’t waiting for Ireland to make up their mind around the passenger cap.

“Airlines need certainty and they plan their routes more than a year out," he said.

"So if they're waiting for Dublin to decide what Dublin is going to do about what arriving aircraft we're going to allow - airlines aren't waiting for a small little country like Ireland to decide their schedules.

“I think it's no surprise that we think Dublin Airport should be a Strategic Development Zone and shouldn't be under the control of Fingal [County Council].

“I mean, it's quite clear that it's not serving us well the way it is currently placed in the planning system and I'm sure there are other airports and ports that also could be moved to those sort of zones.”

Other areas affecting the costs for hoteliers are issues like the cost of electricity, the general rise in inflation meaning refurbishments are more expensive, and more. 

Businessman using cell phone and entering hotel room. Image: Alamy

Mr Gallagher said hoteliers will be working with their new Minister to help ease the cost of business for employers.

“We've met with the Government and our Minister and we've got on quite well so far and we look forward to working with them,” he said.

“But obviously the commitment to that in the budget later on in October is going to be hugely important and also other measures that will ease the cost of business for employers.

“So there may be a view to look at the cost of employers’ PRSI and we look forward to working with, obviously, our new Minister, to try to develop strategies that deliver better cost control within our sector.”

Mr Gallgher said Irish hotels are already seeing a 2% decline in occupancy for the year ahead - which was also the decline last year - meaning we’re starting to see a trend develop. 

A man using a tablet to look for cheap flights and hotels in September 2018. Picture by: Tero Vesalainen / Alamy Stock Photo