Tourism down 13% in June compared to 2019

Amy Blaney

Tourism figures were down 13 per cent in June compared to the same month in 2019, according to the Irish Tourism Industry Confederation (ITIC).

Last month, arrivals from continental Europe performed the strongest, down just 9 per cent on 2019, while the key North American market showed improvement with 260,000 arrivals.

The ITIC has expressed concern about the pace of recovery beyond the traditional summer season due to the challenges of inflation, labour shortages and capacity shortfalls.

In June, inflation stood at 9.6 per cent, while the cost of oil – a key determinant of air fares – was double what it was before the pandemic.

"We are now able to estimate for the first half of the year and momentum continues to build in terms of tourism’s recovery," chief executive of the ITIC Eoghan O’Mara said.

"However it is apparent that supply shortages in accommodation, car hire and labour are likely to restrict growth over the coming months."

Mr O’Mara Walsh urged the Government to maintain pro-tourism policies in Budget 2023: "Irish tourism is the country’s largest indigenous industry and biggest regional employer and it is vital that the sector continues to rebuild.

"Government must maintain tourism investment and keep the Vat rate at 9 per cent until full recovery is secured."

The latest ITIC figures estimate that a full recovery of the sector will not be achieved until 2026.

The confederation said emerging evidence points to a softer 2023 "with cost inflation at an unprecedented level".

"A myriad of factors are distorting the normal Irish tourism market, including deferred bookings, pent up demand, government contracts, the limited pipeline of accommodation, extraordinary inflationary pressures and capacity constraints especially around the availability of people," ITIC chairperson Elaina Fitzgerald said.

"One thing that is for sure is that a much softer tourism market is expected in 2023."