Decline in US Tourists Raises Concerns for Ireland’s Tourism Industry

Dublin: A decline in visitors from the United States is raising concerns about a potential new challenge for Ireland’s tourism sector, despite an overall increase in tourist numbers.

The Irish Tourism Industry Confederation (ITIC) has highlighted a fall in visitors from North America over the past two months as a particular concern for the industry.

The organisation said rising business costs and a shortage of suitable accommodation remain among the main challenges facing Ireland’s tourism sector.

To address these pressures, ITIC is calling on the government to introduce a 9 per cent VAT rate across tourism-related businesses, arguing that the measure would help attract visitors and support tourism in towns and regions throughout the country.

North American market remains vital

Tourists from the United States generally stay longer and spend more during their visits to Ireland than visitors from many other markets. As a result, North America remains one of Ireland’s most important tourism markets.

Figures from the Central Statistics Office (CSO) show that the number of visitors from North America fell by 3 per cent in August compared with the previous month. Spending by visitors from the region also declined by 3 per cent over the same period, falling to €262 million.

ITIC said any sustained setback in the North American market could have a significant impact on tourism businesses across Ireland.

Calls for more accommodation

Tourism organisations are also calling for additional accommodation capacity, particularly in regional and local areas.

The industry has raised concerns about the availability of accommodation and the potential impact of new regulations affecting short-term rental properties.

ITIC said increasing accommodation capacity is essential to ensure that visitors can travel beyond the main tourist centres and contribute to local economies across the country.

Tourism Academy planned with OpenAI

As artificial intelligence continues to have an increasing impact across different sectors, ITIC has announced plans to work with OpenAI to establish a Tourism Academy.

The initiative is intended to provide training and skills development for small and medium-sized enterprises (SMEs) operating in Ireland’s tourism sector.

ITIC chief executive Eoghan O’Mara Walsh said that while overall visitor numbers to Ireland have increased, the decline in visitors from North America is a significant concern for the industry.

Call for 9 per cent VAT rate across tourism

ITIC is calling for the existing 9 per cent VAT rate available to parts of the hospitality sector to be extended to other tourism businesses.

O’Mara Walsh said any deterioration in the US market would present a major challenge for Irish tourism, given the importance of American visitors to the sector.

He said a range of external factors were contributing to changes in visitor numbers and called for measures in the upcoming Budget to improve competitiveness, reduce costs and support investment in tourism infrastructure.

The organisation said some factors affecting tourism are outside the Government’s control, but others can be addressed through domestic policy.

“These include business costs, competitiveness and promoting Ireland abroad,” the organisation said.

ITIC is calling for the 9 per cent VAT rate to be extended to tourist attractions, camping sites and adventure tourism operators, many of which are small and medium-sized enterprises operating in local communities.

The organisation said restoring the 9 per cent rate would provide relief to businesses facing rising operating costs and help make tourism a more sustainable and profitable sector.

ITIC also highlighted energy costs, labour costs, excise duties and other operating expenses as factors that need to be considered in order to support the long-term viability of tourism businesses.

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