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'Perfect storm' for Irish tourism sees visitor numbers drop

Fáilte Ireland has found 53% of tourism businesses nationwide had fewer customers than the same period last year
Jack Quann
Jack Quann

21.04 11 Sep 2024


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'Perfect storm' for Irish tour...

'Perfect storm' for Irish tourism sees visitor numbers drop

Jack Quann
Jack Quann

21.04 11 Sep 2024


Share this article


A 'perfect storm' has led to a drop in tourism numbers this summer, an expert has said.

Fáilte Ireland has found 53% of businesses nationwide had fewer customers than the same period last year.

It's latest Tourism Barometer found 24% of businesses had more customers this summer compared to last summer, and 23% have had the same level.

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This follows on from the May barometer which showed a slow start to 2024.

The food and drink sector has struggled the most, with 68% receiving fewer customers this summer.

Onlookers at the St Patrick's Day Parade in Dublin in March 2009. Onlookers at the St Patrick's Day Parade in Dublin in March 2009. Image: Striking Images / Tourism Ireland / Alamy

Visitor volumes are down in all markets and in all regions of Ireland.

A number of factors have combined to give a disappointing summer with bad weather cited by 51% as a concern.

Fáilte Ireland said these challenges are in addition to "the continued high levels of concern about rising operating costs."

Irish Tourism Industry Confederation CEO Eoghan O'Mara Walsh told The Hard Shoulder the numbers confirmed what they already knew.

"This has been a tough tourism season - tourism and hospitality is still quit seasonal so if you don't your money over the summer, you're heading for a long winter," he said.

"We've been telling the Government and the wider world for quite some time that demand is very mixed.

"North America is strong, thankfully, but other markets - whether that's GB, Europe or indeed the domestic market is soft."

'Squeezing profit margins'

Mr O'Mara Walsh said the big issue for businesses are running costs.

"Whether it's labour, utilities, the VAT increase last year or insurance or... food inflation," he said.

"It's really squeezing profit margins and a tourism business has two choices.

"It either passes the increased costs on to the consumer and that obviously depresses demand, or it absorbs it to the bottom line and that threatens the viability of the business".

Problems in other markets

Mr O'Mara Walsh said economic conditions in other markets are also weighing on tourism here.

"GB is having its own Brexit problems, there's going to be an austerity budget fairly soon.

"Air access is actually down between GB and Ireland.

"Germany is also having issues - so there's problems on the ground here in Ireland in terms of costs but there's also problems in our key source markets.

"It's sort of a perfect storm, in many ways, for Irish tourism."

'Céad Míle Fáilte is being ruined'

Owner of Eala Bhán, and Hooked Restaurants in Sligo Anthony Gray told the show input costs are "skyrocketing".

"Energy costs have gone through the roof, the Government came in and introduced a pension enrolment scheme that we have to adhere to so that's more costs," he said.

"The VAT rate has increased from 9% up to 13.5% and you have all that tied in to the fact that the cost of running a business has gone through the roof".

"It's just not viable and I don't know how many more exerts the Government need to hear this from.

Mr Gray said the hospitality and industries are "in crisis mode".

"Unless they actually reduce the VAT rate back down to 9% you're going to see closure and job losses right throughout the country," he said.

"The Céad Míle Fáilte is being ruined and unless the Government do something about it it's going to get a lot worse".

Mr Gray added that the tourism and hospitality industry is "the backbone of the Irish economy".

Main image: Tourists walk with their luggage, 3-7-21. Image: Hauke-Christian Dittrich/dpa

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Anthony Gray CEO Eoghan O'Mara Walsh Cheats - Relationships On The Hard Shoulder Failte Ireland GB Germany Irish Tourism Irish Tourism Industry Confederation Norther America Tourism Barometer VAT Rate Visitor Numbers

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