Report: Cork's tourism economy could lose out on more then €50m if self catering short term letting is restricted

Cork’s tourism economy could lose out to the tune of more than €50m annually if properties available for short term letting on platforms such as airbnb were converted to long term rentals, a new report published on behalf of the Irish Self Catering Federation (ISCF) has estimated.

According to the recently launched ISCF report, compiled by prominent economist Jim Power, on behalf of the organisation which advocates on behalf of those operating in the self-catering sector, the role of self-catering accommodation was ‘particularly important in an environment where there is a significant lack of tourist accommodation around the country'.

In 2022, a report by Fáilte Ireland suggested that up to 1,313 properties offering short term breaks in Cork could be converted to long term letting.

The overall lost to the local economy from the conversion of this number of short term letting properties in Cork to long term rentals would amount to €51.2m, according to the ISCF report. This figure is based on approximately 50% occupancy by an average of 5 guests who spend €300 per week each – this figure excludes the cost of the accommodation itself.

The report also discloses that there are an estimated 3,082 short term letting properties in Cork, which is only behind Dublin (4713), Kerry (4,215), Galway (3,384) and Donegal (3,175).

The report cites the under-investment in hotels as well as the removal of a significant number of beds from the tourism market to accommodate immigrants around the country. A change in the planning laws allowing bed and breakfast accommodation be changed to private residential use was also cited.

According to the ICSF, the loss of thousands of short term lettings across the Wild Atlantic Way counties on the western seaboard would have a devastating impact on the popular tourism route, totalling €256.8m which is based on the conversion to long term letting of 6,585 properties.

The recommendations arising from the report is the creation of a register to ensure that self catering properties are declared and on a clear register and, as well as that, regulation.

Irish Self Catering Federation chief executive Máire Ní Mhurchú told The Echo that the ICSF had been calling for a register to be put in place since 2017 and added that funding had been allocated to Fáilte Ireland over the past three years to compile the register.

“All EU countries have to have a register in place by April 2026 and data will have to be passed over to Europe on a monthly basis by a central agency in each country and, in Ireland, it’s already been decided that will be Fáilte Ireland,” said Ms. Ní Mhurchú.

The organisation is also seeking regulation for the sector and a derogation allowing all those already operating in the sector continue in business. It also suggests that it’s important that the planning status of self catering businesses currently operating is clarified so people operating those businesses know their status in advance of registering.

In a response from Fáilte Ireland, a spokesperson for the tourism promotion agency said it has been making preparations to launch an implement a Short Term Tourist Letting Register which would be launched following the enactment of the STTL legislation.

“The legislation is being progressed by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, and will align with the recently adopted EU regulation for Short Term Rentals,” the spokesperson said.