Ireland’s tourism sector has experienced a slowdown over the past year, with visitor numbers estimated at 6.16 million in 2025, representing a 6% decline compared with 2024.
In its year-end bulletin, the Irish Tourism Industry Confederation estimates the downturn has resulted in a loss of about €685 million to the Irish economy, with tourist spending falling by 13% in 2025 compared with the previous year, reports RTE.
The chief executive of the Irish Tourism Industry Confederation, Eoghan O’Meara Walsh, told RTÉ News that a number of factors are contributing to the decline.
“We are an island nation, you can only get here by air and sea,” he said. “Air access is weaker from Europe and Great Britain this year, reports RTE.
“We are also a more expensive nation. The Eurostat figures came out during the year, showing us as the second-most expensive country in the EU, second to Denmark. Obviously, that deters a certain segment of the market,” reports RTE.
Despite the challenges, Mr O’Meara Walsh said there is cause for optimism, noting continued strong performance from the North American market, with visitor numbers from the US up 4% and Canada up 8%, supported by favourable exchange rates, strong air connectivity and targeted marketing campaigns.
“It has been a challenging year. The good news is that the North American market is really strong. That is really important because they tour the regions, they spend quite a lot of money, they spend quite a lot of time in Ireland, reports RTE.
“Generally, when tourists are surveyed when they leave the country, they still find Ireland good value for money and they still find Ireland a really quality holiday experience and that is encouraging,” reports RTE.
However, other overseas markets performed less strongly, with visitor numbers from the UK down 4%, France down 13% and Germany down 8%.
ITIC data estimates the tourism sector will contribute €8.89 billion to the national economy in 2025, including overseas and domestic tourism, and will support 225,000 jobs nationwide, reports RTE.
North America remained the most valuable market at almost €2 billion, followed by Continental Europe at €1.73 billion and Britain at €1.61 billion, while new and emerging markets were valued at €445 million.
Inflation across the tourism sector has averaged 6% per year over the past three years, which Mr O’Meara Walsh said is driven by State-related costs such as labour, insurance and energy, reports RTE.
The ITIC chief executive urged the Government to continue what he described as “pro-competitiveness policies”, including the planned reduction of VAT on hospitality and food services to 9%, due to take effect from July.
“We have to be very mindful that we are never going to be the cheapest destination,” he said. “We can’t compete against the cheapest destinations, but we always have to offer value for money, that is absolutely critical,” reports RTE.
He also warned that Ireland may be becoming overly reliant on the North American market.
“If there was volatility in the US stock market, or the dollar-euro exchange rate changed dramatically, Irish tourism would certainly be exposed,” he said, reports RTE.
In response, Mr O’Meara Walsh said a strategy to diversify markets is needed to reduce the impact of such risks.
“The industry is up for that, the tourism agencies are up for it. We need increased market expenditure, I think, in European markets and we need to incentivise airlines to fly in from those key European, and indeed, Asian markets,” he said, reports RTE.
Mr O’Meara Walsh also pointed to a shortage of tourism accommodation and rising hotel prices, attributing them to demand exceeding supply.
“We need to incentivise new hotel stock,” he said. “We need to make sure the curb on short term rentals is done in an appropriate and sensible manner, reports RTE.
“We need to encourage Government to pursue those competitive measures to keep costs down,” reports RTE.
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