Fáilte Ireland survey reveals sector struggles despite performing better than initial forecasts
Almost half of Ireland’s tourism businesses experienced declining revenue during the summer season, with restaurants and bed-and-breakfasts particularly hard hit, according to a new survey by Fáilte Ireland.
The national tourism development authority’s latest Tourism Barometer found that 43% of tourism operators reported falling income compared to summer 2024, while a further 20% saw no change in business levels. Only 37% of businesses claimed revenue had increased during the critical summer period.
Despite the overall decline, Fáilte Ireland noted the outcome proved more favorable than anticipated given subdued early-year figures and cautious industry outlook. “To some extent, the summer has worked out better than expected,” the authority stated.
Performance varied significantly by sector. Hotels fared relatively well, with 54% reporting increased turnover, while 46% of tourist attractions also saw gains. However, hotel owners noted a significant decline in longer stays, partially offset by increased demand for shorter breaks.
In stark contrast, 64% of restaurants and 52% of B&Bs described the summer as particularly difficult. Regional disparities also emerged, with businesses along the Wild Atlantic Way and in Ireland’s Ancient East generally maintaining 2024 revenue levels, while 50% of operators in the Hidden Heartlands midlands region and 48% of Dublin tourism businesses reported declining revenue.
International visitor numbers showed concerning trends, with 44% of respondents reporting decreased revenue from North American tourists. European markets proved similarly challenging, with decline rates ranging from 44% for German visitors to 48% for British tourists.
Rising costs dominated business concerns. Energy expenses topped the list among over 1,000 survey respondents, while payroll costs troubled 81% of hotels and food operators. Non-accommodation operators cited high accommodation costs as their primary concern, warning that Ireland’s poor value-for-money perception among visitors was costing them business.
Looking ahead, industry sentiment remains pessimistic, with 44% of businesses expecting further declines in the final quarter of 2025 compared to last year.