‘Imagine if 20pc of cranes were removed from building sites or one in five farm tractors decommissioned.’

Eoghan O’Mara Welsh, CEO of the Irish Tourism Industry Confederation, was commissioned by the Irish Examiner to write a reaction to the Budget.

Like every sector, Ireland’s tourism industry paid close attention yesterday to the words of Michael McGrath and Paschal Donohoe. The latest CSO data shows that Irish tourism is still some way off full recovery. Airport traffic is inflated by Irish people travelling abroad, and hotel occupancy is inflated by Government contracts for humanitarian purposes — the actual number of tourists in the country is well shy of where it needs to be.

In this context, Budget 2024 was keenly awaited. Regrettably, it proved underwhelming for the country’s largest indigenous industry and biggest regional employer.

Positives first: The macro-picture, including a healthy budget surplus, points to sound management of the country’s economic finances and this has to be welcomed by the business community. Enterprise supports, albeit light on detail, are also important and, if directed appropriately, will help an industry such as tourism and hospitality manage some of the soaring business costs it faces.

However, at first analysis, it seems that what was not announced yesterday is more impactful on Irish tourism. Tourism investment will be static next year at best and without any allowance for inflation, which represents a cut in budgets for Fáilte Ireland and Tourism Ireland. Critically, there was no clarity on a mitigation fund for downstream tourism businesses — such as attractions, adventure and activity providers, restaurants, and pubs — which have seen business plummet due to the State hoovering up local hotels and guesthouses.

The majority of the 40,600 businesses within tourism and hospitality are still reeling from the Government’s decision to hike the Vat rate last month. Although politically incredible to see the 9pc rate restored so soon, it was disappointing that there was no mention of it, nor a commitment to keep the rate under review. Low-margin food service businesses in particular face significant pressure and more must be done to support them.

Ironically the two big issues impacting tourism prosperity in the years ahead are not budget-related.

Dublin Airport, the main gateway for the island of Ireland, is up against a ceiling on the number of passengers it can process. Of course, Cork Airport and Shannon Airport will grow but Dublin Airport too must be allowed to expand. The planning system that has hamstrung Dublin airport for so long is not fit for purpose and must be overhauled.
Equally, hotels and guesthouses contracted for humanitarian purposes must start returning to the tourism economy. One in five tourism bedrooms is now occupied by refugees and asylum seekers according to the latest figures from Fáilte Ireland. Imagine if 20pc of cranes were removed from building sites or one in five farm tractors decommissioned. The Government is over-reliant on the sector and needs to have a more balanced approach to housing refugees and asylum seekers.

Irish tourism has ambition but it must be matched by Government and must be enabled by pro-tourism and pro-enterprise policies. In this context, Budget 2024 represents a missed opportunity.