Latest figures show concerning fall in tourism numbers
And an industry expert has warned we 'could be in deep trouble' as Ireland finds itself at the mercy of the US stock exchange.
Some 654,500 foreign visitors arrived here last month, down 2% from June 2024, according to figures from the Central Statistics Office (CSO).
Tourists leaving here last month also spent 5.5% less than they did last June, with a spend of €881.9million. Cobh, known from 1849 until 1920 as Queenstown, is a seaport town on the south coast of County Cork, Ireland..
The typical visitor spent €1,347 last month: €359 on their fare, €51 on prepayments, €447 on accommodation, and €490 on expenses. Last June, the average spend with fares was €1,437.
However, the average number of nights visitors stayed rose from 7.3 nights to 7.9, an increase of 6%.
TravelExtra.ie's Eoghan Corry said Trump's tariffs could pose a problem for our tourism. 'We are heavily dependent on the US stock exchange. The Americans spent a lot of money in Ireland and the ones who were holidaying here in June would have booked the trip a long time ago, before Trump was making tariff threats.
'Americans are very conscious of the stock exchange when it comes to their discretionary spending. We are at the mercy of the stock exchange and, God forbid, if anything major happens, tourism could be in deep trouble.' Tourism numbers have fallen – and the average visitor to Ireland is spending less, latest Government figures show. Pic: Getty Images
He also said Ireland isn't recovering from the pandemic as quickly as other countries. 'The sector has only slowed down a little bit from 2024, but other European countries are seeing their sectors growing, so if the numbers are accurate, we are lagging behind. Overall numbers compared to before the pandemic are still 38% down. People are staying for more nights, but seem to be spending slightly less.
'These two factors could cancel each other out. Many in the industry would say these figures don't reflect what they see and that they may be even slightly busier,' he said.
CSO figures show just under 300,000 tourists listed hotels as their main accommodation type, while 210,000 were staying with friends, relatives or in their own property.
The greatest number of visitors last month came from the UK (34%), followed by Europe (31%), US (30%) and the rest of the world (5%). US visitors rose 5% compared to last year.
UK tourists spent a relatively low amount last month at €118million (18% of expenditure), while continental Europe spent €200million (31%), US spent €283million (44%) and rest of the world spent €47million (7%).
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Irish Examiner
39 minutes ago
- Irish Examiner
Hot topic: Why bake on the Med when you can have a 'coolcation' at home?
It's the summer season, and you've planned your getaway for months. You are heading for the sunnier climes of Spain or Portugal, even as far as Greece. The traditional sun holiday had it all: beaches, sea, some nice food and most of all, the guarantee of good weather. The sun holiday has been with us for decades, and it's something I've always enjoyed; it's a break from Ireland and the inclement weather. This was something we all revelled in for countless summers. Come the school holidays and the quieter month of August, when the country traditionally shuts down for silly season, we all flocked to the Med. But one would want to be wilfully ignoring the weather forecast for Europe for the last few years, not to know heatwaves are becoming more common; what was once an occasional flare-up now seems to be the norm. I first noticed it in 2018 when a summer heatwave and drought hit Ireland and the UK. Having lived in Australia for nearly a decade, I initially welcomed that warm spell, but then the heat lingered, and I began to have second thoughts. And that was only the start of it. Greece and Turkey are currently battling wildfires, with temperatures above 40C. Picture: Pantelis Fykaris/ via AP The year 2022 saw the worst drought in the Iberian Peninsula for 1,200 years, but it wasn't alone. California also experienced a megadrought, the worst in 1,00 years. The droughts also go hand-in-hand with that deadly outcome: fire. Over the past few summers, wildfires have burned across Europe in our traditional holiday countries. Wildfires and 40C temperatures Indeed, at the time of writing, Greece and Turkey are battling wildfires, with temperatures above 40C. In southern Turkey, the temperatures reached 50.5C in the southeastern city of Silopi, as reported by the BBC, with people being evacuated in the region in their thousands. Tourists have in recent years at times been caught in the crosshairs of these extreme heat and wildfires, with tourists evacuated from holiday regions. Just recently, 5,000 people were evacuated from the island of Crete (more than half of them tourists.) And evacuation is a best-case scenario — in the Greek wildfires in 2023, there were 28 deaths and 75 people injured. But it's not just wildfires, the extreme heatwaves can have more subtle impacts, with estimates now saying some 2,300 people died due to high heat across 12 European cities between June 23 and July 2 of this year, according to research conducted by Imperial College London. France alone saw some 480 people die due to extreme heatwaves that affected nearly the entire nation from June 19 to July 6. The numbers and temperatures can seem improbable at the remove of, by-and-large, temperate Ireland, but once one has experienced 40C, you remember that sort of heat and how oppressive it can be. We knew the climate was changing, but the rate of change of warming in Europe is now faster than the global average — indeed, it is the fastest-warming continent on the planet. With all this in mind, quite a few of us have now started to do something different. Instead of heading for an oppressive Mediterranean beach, people are opting for cool-weather tourism. Cool-weather tourism, or coolcations as it is known, is the option to switch from the heat to a cooler climate country. Escaping heat and overtourism It's not that we are choosing bad weather, rather we are opting to escape the heat and, in the case of many city breaks, the scourge of overtourism. The great thing about coolcations is we don't have far to go — Ireland is right up there on the list of coolcation destinations. Countries like ours, the Scandinavian nations, and even as far flung as Patagonia in Chile and Argentina are now coming into focus for holiday makers. It's why this year I'll be taking my few days' holiday in Ireland and Scotland. The benefits are many if we can break away from the concept of sun worship. Many coolcation regions are a short flight or drive away, they don't suffer from overtourism for the most part, and you can relax at ease knowing that even the big famous tourism spots won't be inundated with snap-happy tourists. My choice of holidaying in a cooler Ireland and Scotland, however, does come with some consequences. Things are more expensive here than say a sunny beach town in Spain, and hotels prices and eating out can put a real dent in holiday plans. Last summer, we went to Dingle in Kerry, pictured, the summer before, we went to Connemara. There were tourists there, but it never felt oppressive. But then I know how much it costs to do this in Ireland already, so we can maybe opt for different approaches, an Airbnb, and cook our own meals rather than going out to restaurants each night of the holiday, or going to galleries and museums, many of which are free. I'm not some Johnny-come-lately on coolcations, though — I knew about it before it was cool, as they say. Last summer, we went to Dingle in Kerry, the summer before, we went to Connemara. There were tourists there, but it never felt oppressive, and the weather was good, bright, but never too hot. And it turns out, I'm far from alone. Euronews reported earlier this year there has been a 44% increase in people travelling to cooler-weather locations for their holidays, including the Nordics, Canada and Iceland. A different sort of holiday Of course, a cool-weather holiday is a different sort of holiday. In Scotland or Ireland, lying on a beach is probably not going to be your number one priority, but if we can get over that stumbling block, there are plenty of more active opportunities on offer. Hill-walking and mountain-climbing in Scotland or Ireland is breathtaking, one can catch a wave on some of the best surf in the world on Ireland's west coast or, as I have heard from fishing friends, go for salmon in the Baltics or even northern Russia. Tourism is already our largest indigenous industry, so we are well used to managing crowds, but we'd better ensure the good thing about Ireland, which is that it never feels too busy, can remain while we accommodate the expected surge. It all sounds good on paper, but if coolcations take off, do we risk these cool-weather locations and countries suffering the same overtourism as our Mediterranean neighbours? We don't want the MacGillycuddy's Reeks to have a queue to get to the top like the Eiffel Tower, or a fjord in Norway to become the new Venice, polluted with cruise ships. As this new trend emerges, it's up to us cool-weather nations to manage the inflow of these extra tourists coming to our nations. Tourism is already our largest indigenous industry, so we are well used to managing crowds, but we'd better ensure the good thing about Ireland, which is that it never feels too busy, can remain while we accommodate the expected surge. It's a holiday option I'll be taking for the foreseeable and one that gives me a sense of relief. I don't have to fly south, I don't have to suffer sweltering heat, and as I'm holidaying with the family in Ireland, I can drive there in the comfort of my own vehicle. Europe and the world is changing. I don't want to live through another 40C heatwave, and if I have my way about it, I won't. There's something to be said for that. And something that thousands are starting to catch on to. If Ireland is smart, we'll be a player in coolcation opportunities, and we can do it and welcome people from around the world as we have always done — with a smile and perhaps a hot whiskey to warm them up.
Irish Examiner
39 minutes ago
- Irish Examiner
Travel experts share their once-in-a-lifetime itineraries for hidden Ireland
'My first tour was in 1998, right after the Omagh bomb. So it was quite the strange time,' says Ginger Aarons. From the peace process and the Celtic Tiger to the advent of a multicultural society, the travel expert and genealogy enthusiast has seen huge changes across the island of Ireland in the 27 years she's been bringing clients here on tailor-made travel trips. And she's not alone. Her fellow bespoke tour operators, Kate McCabe and Max Sussman of Bog & Thunder and Rachel Gaffney of Rachel Gaffney's Real Ireland, have also been blazing a trail from the US to highlight a 21st-century vision of Ireland to their clients, and each have their own take on what that is. Their tours are high-end, once-in-a-lifetime experiences, but all are agreed on one thing: luxury is not necessarily about helicopters, champagne, and five stars. It's to be found in those magical moments of connection, a hidden Ireland that's there, waiting to be revealed, if we just give it the opportunity to do so. Rachel Gaffney at the Port of Cork Rachel Gaffney Rachel Gaffney's Real Ireland 'Take your time. Otherwise you're just doing a drive-by,' is what Cork woman Rachel Gaffney advises the Americans for whom she organises bespoke tours of Ireland. 'Allow Ireland to unveil herself, because she will,' says the Dallas-based slow-travel advocate. Gaffney moved to the States in 1996, having worked in the Irish and UK hotel industry for decades. She set up her own travel company, Rachel Gaffney's Real Ireland, when she moved Stateside, and every year spends 12 weeks in Ireland doing on-the-ground research of what's new and what will chime with her clientele, who, typically, 'have a home in Aspen, and a home in Palm Beach, a home here, and a home there'. 'They have pretty high standards,' she says. 'They may say they're low maintenance, and in fairness, most are. Just get it right for them, that's all they want. 'I have a plan, but I don't have a plan,' she says of her annual deep dive into what Ireland has to offer. Coupled with her natural curiosity and an instinct for the new and unusual, what unfolds for her clients is an eclectic mix. While super-luxe spots invariably feature — 'Ashford and Ballyfin, those are the no-brainers. I send people there because I want them to experience that' — if a place can meet her exacting standards, it stands a chance of making the cut. 'I love Perryville House in Kinsale. Their breakfast is one of the most gorgeous in Ireland.' Rachel Gaffney on Inis Mór Gaffney has an eye for perfection, and the custom luggage racks in Perryville's rooms — no bending down required — merit special mention: 'the ergonomics of how you travel was thought about'. 'I'm matchmaking,' Gaffney says of her role as curator of a bespoke offering. 'I'm putting clients in the right place for them.' The 'truly spectacular' Dunluce Lodge in Co Antrim, is one of her recent discoveries, and only opened its doors this spring. 'When I visited, they were working on a putting green, which will be the largest putting green in Ireland. It's for the residents. So, in the evening, you can sit overlooking the sand dunes and the fourth fairway of Royal Portrush and the ocean. Then, if you like, you can walk outside and practice your putting by a fire pit.' Gaffney likes to immerse herself in a place. 'I sit in bars and restaurants by myself. I talk to people. I want to see what's happening in the area. I want to get a feel for the area, a sense of it. I want to be able to tell my clients, 'when you drive out the driveway and take a left, you can continue that coast road or you can take a fork...'' She rates Clare, calling the county one that's 'really starting to punch above its weight', and namechecks Doolin's Fiddle and Bow — 'the natural colours, the simplicity, the bare floorboards; they brought the outside in' — and the Michelin-starred Homestead Cottage: 'It's literally in the middle of nowhere.' 'I'm finding some of the best hospitality is in the most inaccessible places. If I send people, they'll throw the red carpet out for them. They'll just be so delighted to have you.' Cork is close to her heart too, with one of her 'most favourite hotels', Clonakilty's Dunmore House, sparking memories of a past trip. Gaffney had spontaneously decided to organise a morning yoga class for a group of ladies on an adjacent tiny beach and the hotel staff stepped up to elevate their experience. After the yoga 'what happened was these women, who were in their 60s and 70s, forgot themselves. They were running up and down to the water, making sandcastles. The head gardener had made a fresh-flower crown for the creator of the best one,' Gaffney recalls. 'The hotel staff brought us blankets and a picnic of strawberries and fruit from their garden and cheeses from the English Market. We were still there at four in the afternoon. It was the best day ever. Then the ladies went back to the hotel and had this fabulous dinner and sang songs in the bar. Just magical. That's luxury.' Rachel loves: Wilder Townhouse, Adelaide Rd, D2: 'It was a mansion for retired school governesses. The history in that building is so interesting.' Vandeleur Walled Gardens, Kilrush, Co Clare: 'Spectacular.' Barrow House in Tralee: 'A white Georgian manor house overlooking Barrow Bay. Ekotree knitwear, Doolin, Co Clare: 'The finest cashmere gloves I've ever seen.' Bog & Thunder's Kate McCabe and Max Sussman. Kate McCabe and Max Sussman Bog & Thunder Dubliner Maeve Brennan, a staff writer for The New Yorker in the last century, had no time for cliches about her homeland, decrying 'the bog and thunder variety of stuff that has been foisted abroad in the name of Ireland'. Her adjectives provided the perfect name for McCabe and Sussman's bespoke travel business, which has an eco-tourism and sustainability focus and operates out of the duo's Ann Arbor, Michigan base. 'We're trying to frame Ireland as the modern country that it is. We love the Aran sweaters and we love sheep and we love pubs and all that kind of stuff. But Ireland is so much more than that,' McCabe says. 'We do three types of travel,' explains Sussman, who's also a chef. 'Private itineraries for people who want to plan their own trip; group trips, and retreats.' The retreats are 'a way for us to get more deeply embedded in a specific place,' McCabe says. For their third annual writing retreat this year, they are staying in Within The Village, 'a really special place' in Roundstone, Co Galway. Last year, Max cooked for the group, and they enjoyed a pop-up by Westmeath-based chef Rose Greene of sustainable fermented food business 4Hands Studio. Bespoke food tours and curated culinary experiences are a large part of the Bog & Thunder offering. Two decades ago, New Jersey native McCabe, whose dad is from Tullamore and has connections to Belfast through her maternal grandmother, was 'doing political work around some of the outstanding issues of the peace process' as a college student, and it led to her travelling to Derry and Belfast. After graduation, she continued to visit Ireland and Max, whom she'd met in college, came too. 'We don't do typical food tours,' explains McCabe, whose background is in environmental policy and sustainability. 'When we design our tours, we usually have a theme or a narrative that we're telling throughout the tour. We're doing a tour in August with Youngmi Mayer, a Korean-American comedian whose paternal grandmother is from Cork. She just published a memoir where she talks about being Irish and not really being accepted for being Irish because she looks Korean. She's never been to Ireland before.' Everyone will 'eat amazing food', McCabe says, and there will be talks on 'Irish history and colonisation and immigration and emigration, to ground people in the themes that Youngmi talks about in her book.' Bog & Thunder lead a group around The Burren The duo like the value of involving people 'who aren't necessarily guides' in the tour conversations and are also passionate about 'trying to translate to people, whether they come on guided trips or do our private itineraries, how much of a multicultural nation Ireland is'. They feel hidden Ireland still exists, but like Gaffney, emphasise the need to venture off the beaten track to find it. 'Give yourself a little bit of time and freedom to explore a little bit. Every time we're in Ireland, we meet new people who are doing incredible things.' Once again, the Antrim coast comes up. 'One of our favourite bakeries in Ireland is Ursa Minor in Ballycastle.' Lir, a seafood restaurant in Coleraine, also gets the nod. 'We like to send people there,' McCabe says. 'It's a very beautiful spot, they're very into sustainable seafood, and sustainability is a pillar of our organisation. We like to connect travellers with people that are really walking the walk and actually translating their ethics into the food that they serve in their restaurants.' Another sustainable seafood spot they love is Goldie, on Oliver Plunkett Street in Cork, while the city's Izz Café is cited as a 'great example of an immigrant couple who moved to Ireland and started a food business'. Baltimore's two Michelin star Dede, which they acknowledge as likely to be already on people's radar, is 'one of the best restaurants in Ireland'. One of the things that makes it really special, in addition to the food, is how warm and hospitable it is,' McCabe says. 'And I'd be remiss if we were to talk about Co Cork and not mention our dear friend, Sally Barnes, the only fish smoker on the island of Ireland to work exclusively with wild fish, which is something that we consider really important.' Since 2022, McCabe and Sussman have hosted a podcast, Dyed Green, exploring Irish food and culture, and the duo have 'a medium-term goal of moving to Ireland. We'd love to own and operate a B&B with a food component one day.' Bog & Thunder love: Native Guest House, Ballydehob: We just organised a private writing retreat for some clients there. Seaweed & Saltwater camper vans: For travellers who really want to get off the beaten path and travel sustainably, they have a small fleet of eco-friendly luxury Mercedes Sprinter camper vans. They're both off-grid AND high end, and you can shower and enjoy a good night's sleep on quality sheets. Dingle Sea Salt: A project run by Tom Leach & Moe McKeown, two surfer-scientists who hand harvest and use polytunnels to evaporate all of their salt. Ginger Aarons at Torr Head Ginger Aarons Time Travel Tours Yes, it's her real name, Ginger Aarons tells me over Zoom from Portland, mentioning the Duke of Abercorn is also a sceptic: 'he can't imagine anybody would ever christen me Ginger'. That impressive namedrop is a clue as to one of Aarons's areas of expertise, genealogy; the flame-haired entrepreneur is also a master gardener, and combines these passions in her bespoke travel business, Time Travel Tours. She's been bringing clients to Ireland to find their lineage since 1998, and can trace her own paternal Maguire ancestry back to the Flight of the Earls in the 17th century. On her mother's side, Aarons's Dublin-born ancestor arrived 'in Virginia about 1710', meaning her US ancestors predate the founding of the United States. 'My forefathers fought in the Revolutionary War.' While her own expertise is considerable — 'Ashford Castle uses me for their genealogy' — she recruits experts, such as historic garden consultant and plantsman Neil Porteous and architectural historian Robert O'Byrne, 'so that everybody gets a well-rounded look at Ireland and at the history'. 'Taking people around to the gardens in Ireland is fantastic, and I have so much support — at Mount Stewart, Lady Rose came in and they gave us a Champagne welcome. I have great people on the ground.' Her genealogy tours have a maximum of 12 participants. While they research in libraries and pore over records in great houses, her clients also frequently find themselves in graveyards in search of an ancestor's resting place, with everyone helping each other in their quest. She has long worked with Historic Houses of Ireland but a new venture will see her promoting education around them and giving 'the Irish people more reason to go to these houses, whether it's for a concert or a country weekend'. Ginger Aarons in Armagh Also in the works is an associated educational film, and a book 'Dogs of Historic Houses, which is going to be from the dog's point of view'. Aarons believes that hidden Ireland is to be found in these historic houses, some of which have new owners who are bringing new life to these 'hidden gems', as they welcome paying guests for the first time and find inventive ways of making their properties generate income. Over the course of a fortnight, Aarons's garden tour clients often see three gardens a day, but the pace is never rushed, and food is always an integral part of the tailor-made experience. 'We do a salvia class at Jimmy Blake's and then go to Russborough House for lunch and a history tour. We'll meet the Royal Horticultural Society of Ireland volunteers who look after the walled garden at Russborough, and then go to June Blake's [near Blessington] for afternoon tea.' This September, Aarons's garden enthusiasts will be enjoying cookery lessons from Paul Flynn at Dungarvan's The Tannery, another 'hidden gem', and stopping off at Manning's Food Emporium, near Ballylickey in Cork. 'I've been going there for 25 years. We've had little kids come in and do their music and dancing. Then we'd have our picnic lunch and go to Bantry House for the history and the gardens. We'll be doing that again.' A new trend Aarons has noticed is more people visting Ireland for sport. 'They want to see games, even if it's a local hurling or soccer game. People are very interested in what Irish people do in daily life.' Ginger loves: Enniscoe House, Co Mayo. 'You can do a lot of walking and fishing, enjoy a glass of whiskey by the fire, and they allow dogs stay.' Dunraven Arms Hotel, Adare, Co Limerick: 'A great little hidden gem.' A virtual reconstruction of the Record Treasury and its records which were lost in a fire in 1922. 'You can research your ancestry, and look up wills and all kinds of letters on there.'
Irish Examiner
an hour ago
- Irish Examiner
Trump's global tariff agenda puts Ireland's pharmaceutical industry at serious risk
The whole world is in thrall to the whims of Donald Trump's tariff agenda, as it has been since the 47th president of the United States' swearing-in last January. We've learned a few uncomfortable truths along the way. Much of the early outcry from America's allies and trading partners surrounded the lack of economic logic to the imposition of tariffs – which are effectively a tax for Americans on foreign products, in theory making them less attractive to US consumers and heightening the allure of their own domestic suppliers. Critics said that the new regime would disrupt the world economy needlessly and perhaps bring about a global recession. That may well come to pass. The problem is that in this stand-off America has the greater wherewithal in terms of raw economic power. It holds the cards as Trump himself might say. And nations worldwide are beginning to fall into line, the EU just the latest after agreeing to a blanket 15% tariff on goods and services going forward. After President of the European Commission Ursula von der Leyen and US President Donald Trump agreed the trade deal, the spin is that the pain of those tariffs is worth it in order to avoid a global trade war. Also, 15% is better than 30% or worse, is the thinking. Photo:The spin is that the pain of those tariffs is worth it in order to avoid a global trade war. Also, 15% is better than 30% or worse, is the thinking. Whether that represents capitulation in the face of bullyboy tactics, given that little or nothing has been asked of the US in return, is a separate conversation. Ireland's pharmaceutical industry Here in Ireland we have a bigger problem though, and that problem is the pharmaceutical industry. That industry contributes massively to the economy here via billions of euro in corporation tax contributions, with about 90 companies employing 50,000 people in highly-paid roles. A total 30,000 of those jobs are with American firms. Should foreign pharmaceutical concerns exit Ireland the impact on the country would be catastrophic. The industry globally had pleaded with Trump for it to be exempted from any tariff regime, ostensibly for altruistic reasons – that lifesaving medicines shouldn't be subject to capricious taxation. At an EU level, the industry asked that the bloc not apply reciprocal tariffs, one wish that has at least been granted. Pfizer is one of the massive American pharmaceutical companies holding bases in Ireland, in this case Cork. File picture: Dan Linehan Oddly enough, in Trump's world of permanent grievance where everyone has been making a sucker of the United States for decades, the outsize presence the US pharmaceutical industry holds in Ireland is one situation on which he indisputably has a legitimate point. Drug prices in the US can retail for as much as five times what an EU citizen would pay. Meanwhile, American pharma firms make a pretty penny avoiding American tax by basing themselves here. Trump's protectionist agenda demands that those jobs and companies should return home. The Government has been worrying about and planning for a worst-case scenario in terms of tariffs on pharmaceuticals for months. Reaction from the pharma companies But what of the pharma industry itself? The official line from the Irish Pharmaceutical Healthcare Association (IPHA), the industry's lobby group here, is that it is reviewing the announcements coming out of Washington as and when they happen 'as key implications for the pharmaceutical sector remain uncertain'. A stance it's hard to argue with given the whole world has grown used to the haphazard nature of the Trump administration's demands. The European Federation of Pharmaceutical Industries and Associations (EFPIA) notes that tariffs are 'a blunt instrument that will disrupt supply chains, impact on investment in research and development, and ultimately harm patient access to medicines on both sides of the Atlantic'. It added that if the goal is to rebalance trade and ensure a 'fairer distribution' of how pharmaceutical innovation is financed, then 'there are more effective means than tariffs that would help'. Impact on pharma in Ireland The IDA, the body with prime responsibility for attracting foreign investment to Irish shores, says of the pharma implications that it 'welcomes' the deal made between Europe and the US, arguing it provides 'much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world'. 'We are very much reliant (on the US market), there's no arguing with that,' says one industry insider. Last year a massive €44bn in pharmaceutical products were exported directly from Ireland to the US. 'But when you stand back €100bn was exported globally. So half went to America, but it's not like all business went there, though it is certainly the biggest partner,' says the source. That doesn't mean that those massive American companies holding bases here – MSD, Pfizer, ELI Lilly, Johnson and Johnson etc – are about to up sticks on the back of the new tariff regime. 'They are not going to leave today or tomorrow, no. But it could definitely impact future investment decisions,' the source says. One of the problems is that a great deal of uncertainty still surrounds the 15% tariff agreement, particularly with regard to pharma. One of the Eli Lilly production buildings at its state-of-the-art facility in Dunderrow, Kinsale, Co Cork. For starters, most people concerned thought that the pharmaceutical industry wasn't to be included in the deal. Then about two hours after the deal was agreed European Commission president Ursula von der Leyen said it would be included, a point Trump appeared to back up. The following day the White House produced a 'fact sheet' describing how the new regime would work, and affirming the 15% rate for pharma. Except that the same sheet stated that the European Union would pay the tariff – which isn't how tariffs work. Then there is the Section 232 investigation which the US Department of Commerce initiated into the pharma industry in April – aiming to establish if how the pharmaceutical system worldwide currently functions impacts negatively on the US from a national security standpoint. Should the answer arrived at be a 'yes', then additional tariffs on pharma may well follow (such investigations typically take a minimum of six months to conclude, so we'll probably get an answer sometime towards the end of the year). 'Pharma plans in the long-term,' says Aidan Meagher, tax partner specialising in life sciences with consultants EY, noting that most pharma manufacturers will have been planning for this scenario for months and will have frontloaded stock into the American market, thus negating immediate impacts in the near term. He says that companies will be likely looking at 'dual sourcing' initiatives, supplying the American market from within the US itself and using Irish operations for its trade around the rest of the globe. 'Ireland needs to up its game' But Meagher says that it would be 'remiss' of Ireland, and the pharma industry here, to take a 'wait and see' approach, perhaps with the supposition that Trump's policies will last for the remaining three-and-a-half years of his term, and no longer. 'It is all about the next investment. A lot of these drugs only have patent protection for a certain life or longevity. Ireland needs to maintain investment and to incentivise the right kind of activity in terms of attracting that innovation,' he says. That means thinking outside the box in terms of tax credits for research and development, and improvements to infrastructure, particularly housing, Meagher says, areas in which we are notably lagging behind in terms of international competition. But he argues that the situation is far from a doomsday scenario. 'It's not as simple as that, it's a whole range of business factors that need to be considered – it's all about impacts for specific companies,' he says. 'It's not all necessarily doom and gloom. Companies have had plenty of time to consider this. And pharma companies are long-term thinkers. Ireland has had just two issues with the FDA (the US food and drug administration, responsible for approving new drugs) in its history. "The country has a strong reputation. These countries have invested significantly and Ireland is the owner of a lot of valuable intellectual property.' But it's certainly not a time to be complacent, Meagher argues. 'We have dropped down the competitiveness radar, and our competitors now aren't in the EU – they're in Switzerland, Singapore and the US itself. We need to be a top competitor for inward investment, and R&D and infrastructure will be critical. That is where Ireland needs to up its game.'
