The Irish Hotels Federation (IHF) has expressed concern over the ongoing revenue decline in irish tourism, which has increased pressure on the sector brought on by rising business costs and softening demand.
Overseas visitor expenditure in Ireland dropped 9pc in August 2025 to €743.7m, with a year-to-date decline of over 13pc, according to CSO figures. Tourism supports 270,000 livelihoods, with 69,000 directly employed in hotels and guesthouses, 70pc of which are outside Dublin.
The IHF urges the government to restore the 9pc VAT rate for food-related services from January 2026 to support struggling hospitality businesses.
The industry generates €10bn annually and over €2.9bn in taxes, underscoring its role in regional employment and economic diversification.
Paul Gallagher CEO of the IHF shared: “Despite hopes for a reversal in this trend during the peak summer months, the situation has continued to deteriorate. One crucial step would be to restore the 9pc VAT rate for food-related services. This measure would provide much-needed assistance to struggling businesses.”
