Latest news with #IrishTourism
BreakingNews.ie
02-07-2025
- Business
- BreakingNews.ie
Tourism sector warns of US risks, price pressures and staff shortages
Fáilte Ireland has warned of growing concerns around Ireland's dependence on US visitors, as 'unorthodox policy decisions' in the United States fuel international uncertainty. Its April 2024 industry outlook report, designed to offer a 360-degree view of the sector, predicts 2025 to be a 'solid year' for Irish tourism, with room for further growth in 2026 and beyond. Advertisement However, the report flagged growing price sensitivity among tourists, tight profit margins for operators, and staffing shortages as major concerns facing the industry. It said: 'Consumers are becoming more value conscious as household saving rates are ticking upwards. We're seeing this in tourism via the declining length of stay witnessed in Ireland and elsewhere.' The research highlighted broader economic uncertainty, particularly due to political developments in the US. It said global growth was becoming more sluggish, while the outlook for the Irish economy remained 'modest, but positive'. Feedback from accommodation providers and visitor attractions pointed to value-for-money concerns among tourists, especially those from overseas. Many operators are operating on tight margins and are wary of passing on rising costs to customers. Advertisement 'Price resistance remains a challenge, with margins under pressure as cost increases can't be fully passed on to the end user,' the report said. 'Any price increases are likely to be in line with inflation.' Some hotels were said to be adjusting their rates downward after losing business due to high prices. Rising costs were cited by hoteliers as a growing issue. Operators also raised the issue of staffing shortages, particularly around retention and the increasing reliance on casual or part-time workers. Advertisement Investment in facilities and sustainability projects such as solar panels or space modernisation was being delayed by 'slow returns on investment and financial constraints', the report noted. 'Businesses face financial challenges, including high operational costs, VAT, and electricity expenses. Weather dependency and the impact of external factors on visitor numbers are also concerns,' it said. The report described a 'mixed' picture for accommodation providers, with some enjoying strong bookings while others struggled with 'low occupancy'. Nonetheless, there was strong capital investment last year, with an estimated €950 million worth of hotel and hostel transactions in 2023, a 170 per cent increase on the previous year. About 7,200 hotel, aparthotel and hostel bed spaces were under construction at the end of the year. The research said Dublin commanded a significantly higher 'price per key' with a room valued at €360,000 at one upmarket hotel in the capital compared to €134,000 for a similar hotel in Co Cavan. The DAA, which runs Dublin Airport, expected seat capacity to rise by 5 per cent this summer. Aer Lingus reported steady short-haul bookings and 10 per cent growth in long-haul traffic. Fáilte Ireland said it had no further comment to add to the report.
Irish Times
24-06-2025
- Business
- Irish Times
‘Not expensive, but not super cheap either': US tourists see value in Ireland despite Trump tariff impact
The Irish tourism industry's heavy reliance on the US market is showing signs of strain, with a recent Fáilte Ireland report revealing that a majority of businesses (60 per cent) cite the Trump presidency as their main concern. The reasons fewer US tourists might visit the country are plentiful: uncertainty in the global economy, less disposable income to spend on travel, and anxieties about how they're perceived abroad. While US tourists continue to see Ireland as an attractive destination, businesses fear they won't be coming in droves like they used to. Kate Montgomery, an American living in the UK, is spending a few days in Dublin. Speaking to The Irish Times as she walked around Trinity College Dublin, she described the city as 'a little more reasonable' price-wise than Manchester, where she lives. She was quick to voice her embarrassment at being an American abroad. 'I keep telling my friend to stop saying we're American, just pretend we're Canadian,' she said. READ MORE She chalks this coyness down to politics. Ms Montgomery lived in Japan during the first Trump presidency, and said at this time US politics was nearly always the first thing she was asked about by strangers, which wasn't the case when Joe Biden was in office. Irish tourism businesses surveyed by Fáilte Ireland said clients told them of 'concerns over how other countries will receive them'. Sydney Frankel, from the suburbs of New York City, is in Dublin for a friend's wedding. 'I wouldn't say Dublin is expensive,' she said, 'but I wouldn't say it's super cheap either'. She said she paid a 'higher than normal' price for her flight here of 'around $800 or $900'. High flight prices were also mentioned by other US tourists, who maintained that while visiting the country isn't a financial burden, getting here is. Ms Frankel said Ireland isn't a particularly trendy destination in her social circle, but has a solid reputation for a welcoming people in a beautiful landscape. A reason why Americans might be slower to make the trip, she says, is that 'in the US, a lot of people are thinking we're probably going to be going through a recession soon, so maybe travel suffers from that'. This is reflected in the data, which says although Irish businesses are seeing solid 2025 bookings , a lack of forward booking into 2026 is developing as US pockets feel the pinch of Trump's tariffs. Also, the average length of stay is declining across the board, an indicator often linked to the level of disposable income a visitor can bring with them for their travels. Amy and Matthew Nehring, from rural Pennsylvania, are staying in Howth, Co Dublin, their first stop in a 'big European trip'. Remarking how friendly and welcoming everyone they've met in Ireland had been, they both said they haven't felt judged for being from the US. They agreed on high flight costs and also mentioned the expense of their Airbnb, although they acknowledged that it being near the sea in Howth probably contributed towards the price tag. Basic necessities, particularly road tolls and 'gas station food', are considerably cheaper in Ireland than stateside, they said. The Fáilte Ireland report stressed that the market is not in danger – at least, not yet. Many of the business concerns identified are yet to materialise in an industry that is generally steady. Many service providers – pubs, restaurants, tourist attractions – pointed to a lack of affordable tourist accommodation as a possible reason for a decrease in the volume of customers and a slowdown in revenue so far in 2025. 'During challenging times, positive reviews, recommendations and repeat visits are more important than ever,' the report said. It seems that if many prospective visitors from the US can no longer afford the transatlantic fare, those who do manage it tend to enjoy their time here, and give a strong endorsement for Irish tourism.
Irish Times
31-05-2025
- Business
- Irish Times
Irish tourism feels the pinch of negative data
Eight months after the first cracks in Irish tourism began to show – at least from a statistical point of view – it looks like things are finally improving. But is more trouble afoot? Last September, results from the Central Statistics Office 's (CSO) Inbound Tourism series showed the number of those arriving into Ireland had dropped year on year by 0.7 per cent. A blip? It appeared not – the same metric continued to slide, down 5.1 per cent in October and continuously over the following months, reaching a nadir of 30 per cent down last February. If the industry was getting concerned, it was also getting confused. One only had to look at bookings on the ground, the hospitality sector began to say, to see something wasn't quite right with the CSO's numbers. READ MORE What followed was a sort of polite standoff between the statisticians and tourism bodies. Meetings were held, numbers were crunched, dissenting views were aired. The CSO, for its part, defended its data gathering, highlighting its characteristically robust methods and independently reviewed systems. [ CSO meets tourism industry over 'confusing' visitor data Opens in new window ] But as things neared fever pitch, the fever broke. Data for April , published this week, showed another decline, certainly – down 4 per cent year-on-year – but also indications of recovery. Michael Magner, president of the Irish Hotels Federation , said while there was still a discrepancy between the published figures and industry data, April's were 'more aligned with what businesses have been reporting on the ground'. Hotels, he noted, saw average room occupancy rates of 77 per cent in April compared with 74.5 per cent for the same month last year, as well as a 2 per cent increase in bookings for the first four months of the year. Tourism activity appeared to be holding up. But then another set of numbers kept the champagne corks firmly in place. [ Irish hotels to join landmark Europe-wide legal action against Opens in new window ] 'We are concerned about the overall drop in tourism spend which the CSO are reporting for April, down 10 per cent,' Magner said in a swift addendum to the positive observation on visitor rates. 'This would appear to be part of a wider trend so far this year, according to CSO figures. If this continues into the summer, it would pose an enormous challenge.' Visitor spend was down 22 per cent in March, 31 per cent in February, and 28 per cent in January. In fact, one would have to go back to October to see an increase. If it's not visitors, it's how much they part with – what might May bring?
Irish Times
25-05-2025
- Irish Times
Direct flights to Cancún may say more about the US than Mexico
The turquoise blue water along a sun-drenched Mexican beach is a more appealing prospect than a hostile US border agent. If the comparison seems a bit of a stretch, just ask the Canadians; they've been ditching stateside vacations in their droves recently, in favour of a trip farther south. Now that Aer Lingus has confirmed it will fly directly to Cancún next year, the unprecedented route may prove a timely litmus test for the appetite of Irish tourists and their relative reluctance to visit the US, at least these days. The carrier will service direct flights to the eastern coastal resort, long popular with Irish people, three times a week from January. Famous for its tropical beaches, party vibe, food and sights, the destination has no need to sell itself. But how might it compete with other North American destinations? If Irish tourists follow the lead of the Canadians, the Cancún route may prove to be fortuitous timing for Aer Lingus. READ MORE Earlier this month it emerged that Canadians, angry at the policies of president Donald Trump , were conducting something of a US travel boycott. The number of their residents visiting Mexico climbed 15.6 per cent in March compared with the same month in 2024. The Trump administration's threats of annexation and trade levies triggered a patriotic reaction, strengthened in turn by reports of harsh treatment towards tourists entering the US. Ireland has had its own similar experiences. Visitor numbers from the Republic to the US fell 27 per cent in March when compared with the same month in 2024, according to data from the US International Trade Administration (ITA). It was a similar pattern across Europe. There has been much talk of late about US customs and border protection officers' ability to trawl through passenger phones to see what they might be up to on social media, a disturbing new reality of travel that is likely to put some people off. And given Trump's most recent tariff salvo against the European Union – promising 50 per cent on all imports by June, and who knows what per cent by the time this column reaches print – it is anyone's guess what EU-US relations might look like when Aer Lingus's first Mexico flight touches down south of the border.
Irish Times
23-05-2025
- Business
- Irish Times
Confusing tourism numbers; legacy Bank of Ireland shares; and winning Six Nations profits
Irish tourism continues to be at odds with State number-crunchers regarding the number of visitors arriving each month. Since last September, the Central Statistics Office (CSO), which carries out forensic surveys and data gathering, has reported a steady and consistent decline, bad enough to fall 30 per cent in February. But ask tourism organisations, and they just don't see it on the ground. The CSO has been engaging with them on the numbers. Following similar moves by AIB and PTSB, Bank of Ireland is now considering an offer to buy out thousands of legacy shareholders with tiny holdings after crisis-era bailouts diluted their stakes. Joe Brennan, who was at the bank's AGM, considers the detail. The operator of the Six Nations Championship rugby tournament turned a pretax profit of £10.5 million (€12.5 million) in its last financial year, following previous losses. The Ireland-based Six Nations Rugby Limited is also confident of further strong performances. Hugh Dooley looks at the accounts. The current Donald Trump presidency has brought diversity, equity and inclusion (DEI) policies squarely back into the spotlight. A new survey , reports Emmet Malone, shows that in Ireland more companies are persisting with them than elsewhere. READ MORE Staff at the Business Post have been told it likely they will be moving from their current offices to the Irish Management Institute (IMI) campus in south county Dublin. Colm O'Reilly, chief operating officer of the group, told Ian Curran that while plans had not been concluded, the move was 'probable'. The Business Post Group acquired the IMI from University College Cork (UCC) in a deal finalised earlier this month. It is still a mystery to many how we can ever build enough homes to meet swelling demand. But Glenveagh at least thinks the Government's plan for a housing delivery agency is a step in the right direction if it can just ramp things up a modest amount. Ciara O'Brien and Ian Curran report on comments by chief executive Stephen Garvey as well as some financial details following Thursday's AGM. Eoin Burke-Kennedy takes a look at the ongoing housing crisis , a problem so entrenched that the term 'crisis' may no longer seem the appropriate word. But it is an enduring failure, tangled up in questionable policy decisions, rising rents and demand, building issues, and all in a cash-rich economy. Agenda takes a step back to examine how it all went wrong. Even in simpler times – say the 1960s, when Ireland and the UK were at it – working out a trade agreement was a tricky business. So, when all the drama and intrigue around Donald Trump's on-again, off-again tariff regime is put to one side, it is important to consider just how complicated trade wars and agreements can be. In his column , John FitzGerald explains it all, and warns that it's hard enough when executed in good faith, and far more difficult with a hostile and erratic US negotiating partner. Over €1 million worth of bonus payments have been shared among staff at Storyful , the Rupert Murdoch-owned social media intelligence company, which was bought from former RTÉ journalist Mark Little and investors for €18 million in 2013. Accounts for the Dublin headquartered company, reports Gordon Deegan, also show pretax losses last year decreased by 14 per cent to €2.66 million. The Construction Industry Federation has chosen Andrew Brownlee as its new director general , succeeding Hubert Fitzpatrick. Ciarán Hancock reports on the appointment of Mr Brownlee, who is currently chief executive of Solas, the education and training outift. The former Irish arm of consumer goods giant Procter & Gamble (P&G) paid a €55 million dividend to its Swiss parent company in the year after it sold its last factory and exited manufacturing in the Republic. Ian Curran has the detail on the company which closed its doors here in 2022. Procter & Gamble (Manufacturing) Ireland Ltd currently holds the group's defined benefit pension scheme. If you'd like to read more about the issues that affect your finances, try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
