Irish hospitality and tourism services providers are, largely, optimistic for a good year following mixed fortunes in 2024.
According to Fáilte Ireland‘s latest tourism barometer, 46% of companies expect revenues to rise this year, with 35% expecting no change either way.
The survey found that despite significant cost pressures, as much as 80% of Irish tourism businesses either managed to break even or make a profit during 2024.
However, only 46% increased their revenue, while 36% saw a decrease.
There was also a significant divide among certain sectors – more than half of restaurants and cafés making a loss, compared to 16% across other sub-sectors.
The main profit-makers were inbound tour operators, destination management companies – or DMCs – hotels, caravan parks and tourism companies in Dublin.
Business costs – particularly energy costs and payroll – continue to be the main concerns of companies, but nearly 40% of Irish inbound/domestic tourism businesses expect visitor numbers to be up this year, with overseas visitors expected to drive that growth.
In terms of overseas visitors, last year’s trends showed a slowdown in UK and mainland European visitors, a rise in North American visitors and shorter stays becoming more commonplace.
When it comes to concerns, a lack of affordable tourist accommodation, safety concerns in Dublin city centre and rising costs dominate.
On the latter, many companies have made a profit on the back of increasing their own prices, but they remain slow to do so for fear of it harming their product. A reduction in the hospitality VAT rate remains a huge focus.
