More than half of Ireland’s domestic tourism and hospitality companies have seen fewer customers this summer than 12 months ago, new research by Fáilte Ireland shows.
Less than a quarter (24%) had more custom than last summer, the latest survey shows.
The research shows this summer saw lower numbers of domestic staycationers and inbound visitors; including a marked drop in North American visitor numbers.
A lack of tourist accommodation, the cost of accommodation, lower levels of disposable income and bad weather have all driven the slowdown, Fáilte Ireland said.
Rising operating costs are also having a separate negative effect on business, Fáilte Ireland said.
The food and beverage sector – taking in hotels, restaurants, pubs and coffee shops – was worst hit with a year-on-year customer volume drop of nearly 70%; but the self-catering operator sector bucked the overall trend, with 36% saying they saw a rise in business.
The outlook for the full year makes grim reading, with 50% of tourist businesses expecting a further decline in customer volumes in the second half of the year.
Business revenues are down, and Fáilte Ireland has suggested many businesses will face a challenge to remain profitable. It said businesses may have to raise prices, despite this risking deterring more potential customers.
The news follows on from the Association of Visitor Experiences and Attractions (AVEA) announcing, earlier this week, that while demand for Ireland’s leading visitor attractions has grown from last year, it remains below pre-Covid levels.
