‘The figures for 2025 are correct, but the 2024 figures were wrong': Why the tourist industry is staying optimistic about the outlook
'If anyone asks, Irish tourism is doing very well, thank you very much,' Alva Pearson Downey, CEO of the Inbound Tourism Operators Association (ITOA), said at the end of May.
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Irish Independent
an hour ago
- Irish Independent
Cork Airport announces new route to a jewel of the southern Turkish coast from next summer
SunExpress is a joint venture between Lufthansa and Turkish Airlines and the service will operate from May 16, 2026, through to October 24, 2026, with flights every Tuesday and Saturday. The new service to Antalya will provide even more choice for holidaymakers across Ireland seeking sun, sea, and culture as the İzmir route was announced last week. Seats to both destinations are now on sale on as well as via renowned tour operators and travel agencies. Head of Aviation Business Development & Communications at Cork Airport, Tara Finn said: 'Having just celebrated the first SunExpress service to Izmir last weekend, it's fantastic to be able to announce yet another direct service to Türkiye for next summer – this time to Antalya. 'SunExpress is our ninth and newest airline and is a valued partner as we continue to grow our route network, offering more choice for our loyal and valued customers from across the South of Ireland,' she said. Antalya, located on Türkiye's southern coast, is one of the country's most popular holiday destinations. Known as the gateway to the Turquoise Coast, Antalya offers visitors the opportunity to enjoy golden sandy beaches, crystal-clear waters, and a rich tapestry of history, including the ancient cities of Perge and Aspendos. Tobias Bracht, Head of Sales at Sun Express said: 'We're delighted to announce this new route to Antalya so soon after launching flights to Izmir. 'This expansion offers travellers from Southern Ireland greater opportunities to discover the beauty and culture of Türkiye. 'We remain committed to providing exceptional travel experiences, and our new Antalya route marks another important step in delivering the choice, value and convenience of SunExpress' services to Irish passengers,' Mr Bracht said.
The Journal
2 hours ago
- The Journal
Why interest rate cuts are good news for Irish homeowners - but likely no help for buyers
BOY OH BOY, money's getting cheaper again! Well, borrowing it anyway. Earlier this week, the European Central Bank (ECB) cut its key interest rate by a quarter of a percentage point to 2%. As explained previously , the ECB rate is the interest banks receive for depositing money with the central bank. The important bit here is that when rates are increased, borrowing money becomes more expensive. This dampens consumer demand and reduces price inflation – that's why the ECB sharply increased rates in 2022. Now, the ECB wants to boost European spending. By cutting the rate, the ECB wants banks to lend more to consumers, fuelling economic activity. Like with every economic decision, there are winners and losers. Impact on owners and buyers In an Irish context, both mortgage holders and first time buyers have been portrayed as winners. The logic is that for people who already have a mortgage, they can get a better deal if they're refinancing (or among the group still on tracker mortgages ). And for first time buyers, the cut means their monthly repayment costs will be lower. Theoretically, this will allow them to get a bigger mortgage. Banks and mortgage brokers – anyone with an interest in selling mortgage loans, really – will say this 'increases borrowing power' and is a good thing for prospective buyers. But is this actually true? Well, at the risk of ruining the suspense too soon – probably not. The logic of the benefit holds true for existing mortgage holders. Those on fixed rates coming to the end of their term should be able to get a better deal. Others can shop around. Trackers obviously immediately benefit, as should variable holders. But it's not as simple for house buyers. Are there any benefits for buyers? You see, on paper, lowering mortgage rates for house buyers sounds great. Say you, our imaginary first time buyer, want to get a house that costs €350,000. You have a 10% deposit of €35,000, so you want to borrow €315,000. Let's say the term is a pretty standard 25 years. If your mortgage loan has a rate of 3.75%, which is around average in Ireland right now, you pay €1,620 per month. If the loan rate is lowered by just 0.25% to 3.5%, the monthly repayment is €1,577. A difference of €43 a month isn't exactly earth-shattering stuff. But over the course of a 25 year mortgage, it means you'd save about €13,000 – not bad. So maybe with a 3.5% rate, our imaginary buyer now feels they can stretch their budget a little more when they're house hunting. Maybe instead of paying €350,000, they're happy to go up to €360,000. Honestly, the effect of a single 0.25% rate cut is negligible. But it's not just this one – the ECB has slashed its main interest rate from 4% to 2% over the course of just a year. Going back to our hypothetical house hunter. The difference between 4% and 2% is over €300 per month – or about €100,000 over the lifetime of the mortgage. Of course, Irish banks were hesitant to increase mortgage costs in the face of ECB rate hikes, and will likely be slow again to lower them. But again, the cumulative impact is – borrowing costs are lower. So house hunters can afford to get a slightly better property, right? Advertisement Well, until we, of course, factor in that the rate cut applies to everyone . So all prospective housebuyers get pretty much the exact same boost in buying power. Will Lower Rates Solve the Housing Crisis? And, as you might have heard once or twice, Ireland has a shortage of new homes. We apparently should be building over 50,000 a year to meet demand. Completions came in at 30,000 in 2024, which was actually down slightly on 2023. House price inflation has also been on a steady upward march, rising by 7.5% in the 12 months to May . So with supply tight and the market already pretty hot, what will happen when you give all would-be house buyers the ability to borrow more money? Well, there's a decent chance prices will rise. That was the finding of a study published a few years ago looking at Australia's housing market, which is often compared to Ireland's. It found the reduction in interest rates after the financial crisis in 2008 'accounted for most of the subsequent boom in dwelling prices'. A 1% reduction in interest rates was estimated to be linked to a 2% property price rise over the next two years. A separate Australian study found the inflationary impact of interest rates tended to be even greater in areas where housing supply was tight. It suggested that lower interest rates 'increase housing wealth inequality, while higher rates do the opposite'. Although, it added the effects 'appear to be temporary'. This ties in with research previously carried out in Ireland by the Economic and Social Research Institute . It found that the real impact of interest rate is more on buyer behaviour. As rates start to come down, people expect they'll come down more. This makes buyers more confident, so they're more likely to spend money. The effect is similar either way. Lower rates = high prices. This largely cancels out the benefit of 'increased borrowing power' for buyers. Two other points worth noting quickly. One, the reverse of this is meant to be true. i.e, raising interest rates should lower house prices. The ECB hiked interest rates quickly between late 2022 and 2023. And while Irish house price inflation did significantly slow during that period, prices still rose , albeit at 'only' 2 – 4% for much of the year. Property price inflation then exploded in 2024, when consumers were told the rate hikes were over, and borrowing costs would eventually come down. The Central Bank also loosened Irish mortgage rules around this time . Again, this improved 'buyer affordability'. But when prices then surged by over 10% the following year, were buyers really any better off? The second point (and also the last one in this article). Lowering interest rates mean borrowers can saddle up with bigger debts. But Ireland doesn't do long term fixed rates. Mortgage rates are normally agreed for a maximum of five years, before home owners then have to renegotiate. But while interest rates change, how much you borrowed doesn't. Essentially – if you take on a mortgage of €325,000 instead of €315,000 at a 3.5% rate, you've stuck with that extra €10,000. When you have to refinance, that 3.5% rate could be 4%. But that extra €10,000 is still there. Of course, this can work the other way – interest rates can come down. But the ECB's current 2% rate is already pretty normal by historical standards . The only reason it was lowered below that in the first place was due to a generational recession after the 2008 financial crisis. Barring another one of those, chances are borrowing costs are more likely to rise than fall. What does all of this mean? Basically – don't believe the hype. Lower rates are good news for existing mortgage holders. But for prospective buyers currently house hunting – their 'increased borrowing power' will likely be cancelled out by further price rises. For them, the overall impact will probably be neutral at best. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Agriland
2 hours ago
- Agriland
Sustainable gains: Clover success for Co. Limerick dairy farmer
Irish livestock farming is evolving and farmers are embracing solutions to drive both profitability and sustainability. Niall Moloney is a multi-award-winning dairy farmer working alongside his father, Gerry, in Crecora, Co. Limerick. The 2018 Teagasc Young Grassland Farmer of the Year, Niall was then crowned Germinal Responsible Grassland Manager of the Year at the 2023 National Dairy Awards after showcasing his talent for sustainable dairy farming. Having been farming on almost 97ha over three blocks, Niall and his father acquired an additional 15ha to bring the total area farmed to 112ha over four blocks. By September 2024, they had grown their herd to 170 cows on a 51ha platform. Understanding soil fertility is foundational For Niall, understanding and nurturing soil fertility is crucial. He explained: 'We soil test every year, that's non-negotiable. Over the years, soil fertility will drop in some fields where you don't expect it to, and you can react a lot quicker and get those fields back to optimising growing grass again. 'I even pick grasses for different types of soil in different places on the farm,' he explains. This meticulous approach ensures that every paddock is performing at its best, laying the groundwork for producing quality grass and forage. Niall estimates that 60% of the farm is on dry, free-draining soil, while the remainder is on heavier, more peaty soils. Clover supports self-sufficiency Faced with increasing input costs and soaring fertiliser prices, and the uncertainties around the Nitrates Directive derogation, Niall turned to Germinal's Climate Smart clover mixtures to help him reduce chemical inputs and boost sustainability, while maintaining output and performance. 'We're trying to use clover as much as we can to reduce chemical nitrogen inputs, and it does work. 'In the past, when spreading first-cut silage, you were using an awful lot of fertiliser. With red clover silage, we've pretty much erased that. 'The results speak for themselves. You notice it straight away at the end of the year, especially when fertiliser was rising to €1,000 per tonne,' Niall said. Germinal's technical director, Dr. Mary McEvoy, highlights the impact: 'Clover has a lot to offer. We can maintain our improved quality of the feed, but the real win is the ability of clover to fix nitrogen, reducing the need we have for nitrogen fertiliser. 'The Department of Agriculture in Ireland continues to prioritise reducing emissions and using clover on farms. 'Farmers are responding and we are seeing a major uptake in the number of mixtures we are being asked for with a higher clover content compared to the past.' As part of the Department of Agriculture, Food and the Marine (DAFM) Red Clover Silage Measure, Niall sowed a Germinal mixture across 16ac in 2022. Seeing the results, Niall sowed an additional 30ac in 2023. In a good year, he can produce 15t/ha of red clover silage. When reseeding with a red clover mixture, Niall aims for early April to get a quicker turnaround time. He completes two runs with the disc and uses a power harrow with a seedbox for sowing. Sustainable grassland tips When discussing the concept of performance plus sustainability, Niall explains that both are required if farmers are to be profitable and climate smart. Here's what Niall is doing to reduce emissions on-farm: Start from the ground up and soil test every year. Maintain correct soil pH with a liming programme. Only apply fertilisers where they are needed. Reseed underperforming fields with clover to maximise grass growth. Cut back on nitrogen fertiliser once clover is established, and particularly when temperatures rise and clovers are fixing nitrogen. Low emission slurry spreading – once permitted, get slurry out early under the right ground conditions. Use protected urea for an early top dressing of nitrogen. Performance plus sustainability Germinal has just launched five new Climate Smart seed mixture ranges designed to deliver on performance and sustainability for Irish grassland farmers. Niall is using Germinal's Red Clover Silage mixture from the Climate Smart RESTORE range. Ready to take control of your grass and forage production?
