Majority of tourism firms in Ireland see no growth, survey shows

30 Oct 2025

DUBLIN, Ireland: Most tourism businesses in Ireland said their income either dropped or stayed the same this summer, according to a new survey by Fáilte Ireland.

The latest “Tourism Barometer” survey found that 43 percent of tourism businesses had lower income than last summer, and another 20 percent saw no change. Only 37 percent said their revenue increased.

Even though overall earnings were down, Fáilte Ireland said the results were better than expected, given the slow start to the year and the low expectations many businesses had for the summer. “To some extent, the summer has worked out better than expected,” the report said.

Some sectors performed better than others. About 54 percent of hotels and 46 percent of tourist attractions reported higher revenue. Hotel owners said longer stays were down, but more short breaks partly balanced this.

However, the season was much tougher for restaurants (64 percent) and B&Bs (52 percent), which reported falling business.

There were also regional differences. Businesses along the Wild Atlantic Way and in Ireland’s Ancient East mostly managed to maintain last year’s income, but half of those in Ireland’s Hidden Heartlands (the midlands) and 48 percent in Dublin said their revenue dropped.

Many businesses also reported fewer American visitors, with 44 percent saying revenue from North America was down. The decline in visitors from Europe ranged from 44 percent for Germany to 48 percent for Britain.

Rising costs remain the biggest concern for most businesses — especially energy costs. Over 1,000 businesses mentioned this as a significant issue. Another key worry was staff wages, with a majority of hotels and food businesses saying payroll costs were hurting their performance.

Meanwhile, tour operators and attraction owners said that the high price of accommodation in Ireland was their main problem. They warned that many visitors now see Ireland as poor value for money, which is driving them away.

There was some good news: Slightly more than half of tourism businesses said they received positive reviews and recommendations from visitors.

Still, the outlook for the rest of 2025 remains uncertain. About 44 percent of businesses expect lower trade in the final quarter of the year compared to 2024, while nearly a quarter think their income will rise. Fáilte Ireland described the outlook as “subdued” across all sectors.

Concerns about international trade tariffs have also caused some businesses to delay or cancel investment plans. A quarter of those surveyed said the issue had an adverse effect on their plans, with 26 percent canceling, 35 percent delaying, and 39 percent scaling back projects.

Some operators said uncertainty in the U.S. economy was making American tourists — one of Ireland’s most important visitor groups — less willing to spend or travel.

Interestingly, fewer businesses now see the “Trump presidency/global economy” as their primary concern — down from 60 percent in May to 44 percent in September.

The survey also found a new travel trend: some visitors are choosing Ireland for its cooler weather, trying to escape the extreme heat in southern Europe during the summer.

 

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