Ireland’s domestic and inbound tourist industry is facing into “a perfect storm” of cost increases and capacity constraints; with the sector still not fully recovered from the Covid crisis, industry group the Irish Tourism Industry Confederation (ITIC) has warned.
Opening its 2024 annual conference, in Dublin, ITIC warned that Ireland’s inbound tourism sector has not recovered to pre-Covid levels and remains 6% off pre-crisis levels; adding that – in the meantime – costs have soared and profitability within the sector is “seriously damaged”.
It added that as much as 64% of Irish hospitality businesses expect profits to fall this year, and warned that employee legislation will add €1.4bn to the sector’s payroll costs by next year.
Niall MacCarthy, Chair of ITIC, said: “Tourism is the country’s largest indigenous industry and biggest regional employer and it is having a tough time. Intelligence by ITIC shows the tourism industry is still 6% off its pre-pandemic levels, meanwhile costs have soared and profitability is seriously damaged.”
