The Irish tourism industry is facing ongoing challenges from high costs, low demand and supply shortages, a report from Fáilte Ireland has claimed, with demand falling below expectations and only a quarter of businesses reporting increased customer numbers.
Tourists have become increasingly value-conscious amidst concerns about national economies. It reported 24pc of Irish tourism businesses had more customers than the previous year.
The level of Fáilte Ireland registered bed stock under government contract has fallen to 10pc (from 12pc in November) and more was expected to come out of contract over the summer
While established areas like Dublin face high occupancy challenges, less mature destinations in the north experienced better performance.
Registered beds are up by 3pc but high hotel occupancy rates in Dublin were having a clear impact in encouraging visitors away from the capital with some tourists were avoiding trips to the city altogether “due to lack of accommodation.”
The report, the 360-degree view stated: “One thing that is worth calling out is the continued elevated household savings rate. If this is being driven by a precautionary motive, then many are still guarded about the future and may be slow to spend.”
