Ireland has been revealed to be the slowest country in Europe to recover from the pandemic, with visitor numbers down by around 42 percent.
In 2019, the beautiful country welcomed over 10.9 million overseas holidaymakers, but only 6.3 in 2023, according to the World Tourism Organisation (UNWTO).
What’s more, arrivals for the first six months of 2024 show only a small increase of four percent on last year.
The top five countries with slowest post-pandemic tourism recovery were Ireland with a percentage change of -42.47, Peru (-42.25), the Philippines (-39.44), Angola (-38.53) and Pakistan (-38.15).
Also included in the top 20 were South Korea, Iran, Israel and Madagascar. A spokesman from Tourism Ireland told The Telegraph: “Challenges include the cost of living crisis, which affects many of our overseas markets, capacity issues, along with competition from other destinations”.
However, Tourism Ireland also argued that the figures may not be accurate representations of the numbers, adding that there is a new Central Statistics Office (CSO) methodology used to measure visitor figures.
In the summer 2024 Tourism Barometer published by Fáilte Ireland, research shows that visitor volumes are down in all markets and regions of Ireland.
One factor seems to stand out above all others for the reason why international tourists are looking elsewhere for their holidays – cost. Ireland has long had a reputation as an expensive country, with the cost of living crisis affecting both visitors and businesses, which are struggling with rising running costs.
“Ireland is never going to be the cheapest destination,” says Eoghan O’Mara Walsh, CEO of the Irish Tourism Industry Confederation. “And the rising costs mean we’re now becoming an expensive destination in which to do business.
“The big problem you hear from every hotel, restaurant or tourist attraction is the cost,” he said.
“The costs of running a tourism and hospitality business are really high. So the business has two choices. One, they pass on all those extra costs to the consumer, but obviously that risks damaging demand. Or two, they absorb it to the bottom line and that obviously risks the viability of the business.”
An increase to the VAT rate, which largely affects the tourism and hospitality sector, has also played a big role. In 2023, the VAT rate for some goods and services increased from nine percent back to 13.5 percent, reversing a decision made in 2020 to help businesses during the pandemic. Such a move has caused outrage in the industry, particularly among restaurants, bars and hotels that are already struggling to make ends meet.
“I think Ireland has become a more expensive country to visit over the last few years, like a lot of others,” Johnny Duggan, owner of Taylor’s Bar and Thai Garden Galway, told The Telegraph. He added that VAT rates in Ireland are some of the higher sales taxes in Europe.
“In addition, we have one of the highest excise rates in Europe on alcohol, meaning that the price of a pint or a glass of wine is often up to four times more expensive than in the likes of Spain.”
The price of accommodation was also a big concern, particularly when global music acts are in town, such as Taylor Swift, Coldplay and the upcoming Oasis concerts. Like elsewhere, hotel rates in Dublin skyrocketed, which damaged the reputation of the already pricey city further.
There is also a lack of availability of hotel rooms: “Capacity in our accommodation sector is an issue at peak and shoulder seasons, due to some hotels having taken on year-round contracts to accommodate people fleeing war or seeking asylum,” said Duggan. “There has been a massive displacement of people into Europe from various other areas over the past few years, leading to a reduction in accommodation capacity in some areas and regions.”
In March 2023, 34 percent of the registered tourism bed stock was being used as emergency accommodation for refugees and asylum seekers. While the figure is now down to 10 percent, there continue to be knock-on effects, with associated businesses like tourism attractions and cafes closing down.
Nevertheless, the Fáilte Ireland Tourism Barometer states that 43 percent of inbound tour operators have seen more visitors and the US market, key for Irish tourism, is reportedly looking strong.
Tourism Ireland also shared a positive outlook for the upcoming year, focusing on revenue rather than numbers: “When comparing Jan to Aug for 2024 versus 2023, we see spending up by 17 percent, trips up by 11 percent and nights slightly down by two percent. This is a positive indication of how the year will turn out.”