Tourism industry 'nervous' over US visitor slowdown

The Irish Tourism Industry Confederation's Chief Executive, Eoghan O Mara Walsh, has expressed concerns over a slowdown in US visitor numbers to Ireland. Speaking on RTÉ's Morning Ireland, Mr. O Mara Walsh noted that despite an overall increase in visitor numbers, there has been a significant decline in arrivals from North America, particularly the US, over the past three months. This development has left the tourism industry feeling uneasy about the forthcoming year and beyond.

Mr. O Mara Walsh attributed the drop in visitors to macroeconomic uncertainty and geopolitical factors, which are adversely affecting demand. He warned that a negative impact on the US market could pose a significant challenge to Ireland's tourism sector. The organization is advocating for competitiveness measures and capacity increases in the upcoming Budget, emphasizing that while external factors are beyond their control, they can manage certain aspects such as business costs, competitiveness, and marketing efforts.

The Confederation is lobbying for the restoration of the 9% VAT rate for tourism businesses in the Budget. This includes visitor attractions, camping sites, and adventure operators, which are predominantly small and medium-sized enterprises (SMEs) along the Wild Atlantic Way. These businesses are grappling with escalating business costs and low profit margins. Restoring the VAT rate to 9%, a rate previously enjoyed by these businesses, could significantly improve their viability.

Mr. O Mara Walsh emphasized that value is crucial for Irish businesses. He highlighted that high energy costs, labor costs, and excise rates are some of the input costs that businesses must contend with. He stressed the importance of making tourism a more viable sector for businesses to operate in. He concluded by stating that while Ireland is not the cheapest destination, it aims to remain competitive in the global market.