By Johanna Gardener •
Published: 23 Oct 2024 • 13:30
• 3 minutes read
Ireland is no longer an attractive destination for tourists with a fall in numbers due to exorbitant costs of accommodation and amenities.
Data released by UNWTO , shows Ireland attracted 10,951,000 visitors to its shores in 2019. This figure was down 42% in 2023 with only 6,300,000 visitors receiving a famous Irish welcome.
According to the World Tourism Organisation (UNWTO), Ireland is officially the slowest European country to recover its pre-pandemic tourist levels. So what is pouring cold water over the Emerald Isle’s tourism market? The topical conversation of the changeable weather in Ireland usually was the easy excuse to point the finger to but in recent years Ireland has become a destination that is becoming crippled with high prices, a cost of living crisis and a lack of available accommodation. To top it all off!
Ireland for a holiday? Too expensive for most budgets
The single biggest deterrent for visitors is cost. Ireland was always a country that had a reputation for being a more expensive destination. However, with a cost-of-living crisis making pockets shallower, more international tourists are looking elsewhere to get more value for their euro. Eoghan O Meara Walsh, CEO of the Irish Tourism Industry Confederation referenced the concerns and worries from all restaurants and hotels as increased running and operating costs inevitably get passed onto the customers. This damages demand but is necessary as the hospitality sector can’t risk absorbing the costs and risk the viability of the business.
Struggling tourism in Ireland throttled by VAT rate increase reversal
A major gripe with hotel and restaurant business owners is the increased VAT rate which was increased by 4.5% in in 2023 to 13.5%. This was a reversal of a welcomed decision in 2020 to reduce the impact of the pandemic in 2020. This move has angered the industry that is already struggling to keep business afloat. In a country that already has high prices, the future forecast of further recovery doesn’t look anywhere near being at the end of the tunnel. Johnny Duggan of Taylor’s Bar and Thai Garden in Galway says: “Government policy in Ireland also isn’t helping, where VAT rates are at 23% on beverages and 13.5% on food and accommodation, 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.”
Irish accommodation prices through the roof
Accommodation prices have seen a marked increase since the pandemic which have been exasperated by price gouging at times of major concerts or sporting events. This causes further damage to the likes of Dublin City that already suffers from a questionable reputation for its high accommodation prices. The lack of availability in hotels is also contributing to steeper room costs as many hotels are on yearly contracts to process and and house asylum seekers fleeing from other countries. According to figures, 34% of registered beds were being used as emergency accommodation for refugees and asylum seeker, which has reduced the capacity of rooms and pushed up prices. This has a subsequent knock-on effect for local businesses that depend on the tourism trade.
And Ireland s weather?
Ireland’s wet weather also adds to holidaymakers woes with 51% of tourists citing the summer of 2024 as particularly wet and miserable. This invariably encourages both domestic and international tourists to book cheaper sunnier destinations abroad which often work out cheaper than holidaying at home. The Irish weather may serve as a fitting metaphor for the country s sluggish tourism recovery, as travellers are increasingly opting for alternative destinations that offer more attractive pricing. Oh, and better weather!
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Written by
Johanna Gardener
Originally from Manchester, UK and with a degree in English with Modern Foreign Languages, she has been a permanent resident in Spain for the past 12 years. Many of these years, she has spent working as a secondary school teacher, as well as in journalism, editing and marketing. She currently lives in the historic centre of Malaga, where she enjoys writing, walking and animals.
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