Seven million people visited Ireland in 2022

James Cox

The Irish Tourism Industry Confederation (ITIC) has today issued its estimates for the volume of international visitor arrivals in 2022.

ITIC estimate that seven million international tourists came to Ireland this year, a 73 per cent recovery compared to the pre-pandemic peak of 2019.

Mainland Europe was the largest source market with 1.5 million high-spending North Americans also visiting the country. Although 2022 was better than anticipated, there is "significant anxiety about 2023 with cost inflation, a sharp reduction in tourism accommodation supply, and a potential VAT increase all worrying tourism leaders".

Estimates for next year range from a dip on this year’s performance to single digit growth. Air access and demand from key source markets look strong but economic headwinds globally, allied to cost inflation and supply constraints at home, make accurate forecasting challenging. ITIC estimate that a full tourism recovery to 2019 levels is not likely to be achieved until 2026.

Elaina Fitzgerald Kane, chairperson of ITIC, said: “2022 has thankfully been a stronger year than anticipated with pent-up demand, deferred bookings and accumulated savings all boosting business this year. It is vital that the sector returns to sustainable growth."

Economist Jim Power recently completed a report for ITIC into the economic rationale for retaining the 9 per cent VAT rate in lieu of the Government’s current plan to reinstate the 13.5 per cent from March 1st, 2023.

He estimated that the increase in VAT would add 4.1 per cent inflation to accommodation and food services and cost 24,000 jobs.

“Hopefully Minister McGrath heeds these warnings and quickly gives the industry certainty about the 9 per cent VAT rate going forward," said Ms Fitzgerald Kane.