Panic has erupted in Ireland as tourism operators warn that they face “a sobering context” for the upcoming season.
The ongoing war in Ukraine, trade and tariff uncertainty over Donald Trump’s incoming US administration, as well as global inflation are all believed to negatively impact the country’s tourism industry.
But the main “handbrake” on Ireland’s lack of growth is the 32m passenger cap imposed on Dublin Airport.
The strict cap of 32 million was put in place by Fingal County Council in 2007 as part of a condition in allowing the second terminal to be built.
At the time the IAA stated the cap was necessary to comply with a planning condition.
However the cap means that the airport will lose investment opportunities, bosses say. It also means trade and tourism markets will face reduced service to other key destinations.
There are also concerns the country overall will suffer damage due to its busiest airport being held back by the cap.
An Irish Tourist Industry Confederation (ITIC) forecaster said: “The main handbrake on growth is the continued passenger cap at Dublin Airport. With 70pc of the Irish tourism economy dependent on international visitation, it is vital that the main gateway into the country has the headroom to grow.
“Although there is a court ruling to put a ‘stay’ on the cap for next summer, the issue of restrictions on Dublin growth is as persistent as ever.”
Ireland is the only top 20 European destination that has shown a decline in air travel so far this winter – down 3%.
And although tourism numbers across Europe are set to increase by 8% this year Ireland will not match that level of growth.
“Due to capacity and supply pressures here in Ireland, the ITIC anticipates that growth in Irish tourism volumes will be lower,” an ITIC forecaster said.
Instead the ITIC is turning their attention on regional Irish airports such as Cork, Shannon, Kerry and Ireland West.
Last year, Cork Airport was the fastest growing of the three state airports in Ireland, with an 11% growth rate in the first seven months.
Despite the aipirt being poised to confirm record route schedules for 2025 the ITIC said growth at regional airports will not compensate for lost business at Dublin, Ireland’s busiest airport, which is the preferred destination for many carriers.