A pint of Guinness outside a pub in Temple Bar, Dublin(Image: PAUL ELLIS/AFP via Getty Images)
Ireland’s rocketing cost of living could be a factor in a dramatic drop in tourist numbers which are down over six percent on last year.
Tourism chiefs estimate that the loss to the economy from the reduced numbers is around €685 million, with tourists spending 13% less in 2025 than in the previous 12-month period.
The latest figures from Irish Tourism Industry Confederation show that around 6.16 million visitors came here during the year down six percent on the previous year.
The Confederation’s chief executive Eoghan O’Meara Walsh, told RTÉ News that there are several factors contributing to the drop including country being too expensive.
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He said: “We are an island nation, you can only get here by air and sea. Air access is weaker from Europe and Great Britain this year.
“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.”
But he added that the Confederation’s end of year bulletin shows that the North American market – US and Canadian visitor numbers rose by four percent and eight percent respectively.
He added: “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.
“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.”
But on the downside other overseas markets proved weaker with UK visitor numbers down four percent, while French visitors were down 13% and German tourists declined by eight percent.
Data from the ITIC estimates the sector will be worth €8.89 billion to Ireland’s economy this year, when accounting for overseas visits and domestic tourism, employing 225,000 people nationally.
The most valuable market was North America, which was worth almost €2 billion with the Continental European market next most valuable at €1.73 billion and the British market worth €1.61bn. New and emerging markets were worth €445m.
Inflation in the overall tourism sector is up six percent per annum for the last three years, which Mr O’Mara Walsh attributes to State-induced costs such as labour, insurance and energy, among others.
Mr O’Meara Walsh added: “We have to be very mindful that we are never going to be the cheapest destination.
“We can’t compete against the cheapest destinations, but we always have to offer value for money, that is absolutely critical.”
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