Fáilte Ireland's 2024 tourism barometer reveals a mixed picture for the Irish tourism industry. While revenue is increasing and the outlook is positive, concerns remain about the rising cost of doing business, particularly for restaurants and the food and drink sector.
Fáilte Ireland , the tourism body, presents a mixed picture of the Irish tourism industry. While revenues are rising and the outlook appears positive, concerns persist regarding the escalating cost of doing business. 'At a national level the performance of the sector is overall very good — strong growth in revenue, good volume growth, but at an individual business level, on average, profit margins have been squeezed,' states Fáilte Ireland CEO Paul Kelly.
According to the agency's 2024 tourism barometer, rising operational costs are forcing many businesses to increase prices, jeopardizing their affordability and competitiveness.The report, based on 920 tourism company survey responses, reveals that 68% of businesses implemented price hikes due to escalating operational costs. This trend was particularly evident in hotels (87%), inbound tour operators (83%), and the food and drink sector (83%). In contrast, only about half of attractions, activity providers, and self-catering operators raised their prices.Although nearly one-third of restaurants experienced revenue growth, 59% faced a decline, the highest proportion across all sectors. The majority of restaurants (86%) increased their prices during the year, yet many still struggled to break even. Concerns about costs, primarily energy (cited by 57% of respondents) and payroll (56%), continue to dominate the industry. The report highlights a positive performance in accommodation availability, driven by a reduction in government contracts for asylum seekers and international protection applicants, along with a significant increase in activities and attractions. This expansion in capacity contributed to revenue and volume growth being distributed across more businesses. Notably, inbound tour operators reported an upswing in the North American market, unlike the dip in revenue from British and mainland European visitors
TOURISM IRELAND FÁILTE IRELAND REVENUE COSTS PROFIT MARGINS RESTAURANTS FOOD AND DRINK SECTOR NORTH AMERICA
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