A “perfect storm” has resulted in a decrease in tourism in Ireland, with 53pc of businesses reporting fewer customers compared to last summer, while only 24pc saw an increase.
The food and drink sector was particularly hard-hit, with 68pc of businesses experiencing reduced customer volumes, attributed to factors like bad weather and rising operating costs.
Economic issues in key source markets such as England and Germany, combined with increased operational costs for Irish businesses, are significantly impacting tourism.
Industry leaders are urging the government to reduce the VAT rate back to 9pc to alleviate financial pressures, asserting that the current situation threatens the viability of businesses and could lead to closures and job losses.
According to Fáilte Ireland’s survey, the traditionally strong hotel sector experienced a significant decline this summer, with only 12pc reporting an increase in visitors while 57pc noted a decrease, largely affected by rising costs and reduced disposable income among customers.
The restaurant sector fared even worse, with 73pc reporting fewer customers and over half indicating a bleak outlook for future performance; concerns about rising payroll costs were the most critical issue for 88pc of restaurateurs.
Pubs and bars also struggled, with a profitability decline reported by 82pc of operators, and only 13pc seeing an increase in customers; insurance costs compounded the financial pressures faced by this sector.
Self-catering accommodations were the exception, with 36pc of operators reporting an increase in guests, primarily due to overseas visitors, while concerns about Irish holidaymakers traveling abroad remain prominent among operators.
