Tourism industry calls for government intervention as numbers drop and prices rise
In its most recent submission to the government ahead of the 2025 Budget, the ITIC laid out numerous areas where policy change is urgently needed to stabilise and grow the sector.
According to ITIC, Ireland is experiencing a sharp drop in tourist arrivals from traditionally strong markets such as Britain and mainland Europe.
While visitors from North America remain relatively consistent, the group warns that relying too heavily on this one region leaves the industry exposed to economic and political shifts beyond its control.
To address this imbalance, ITIC is calling for increased government spending on tourism services, to the cost of an additional €90 million annually.
This would be used to help diversify the country's international appeal and strengthen its presence in underperforming markets.
Another pressing issue, according to ITIC, is the passenger cap at Dublin Airport, which currently limits annual traffic to 32 million.
This restriction is now being cited as a major obstacle to growth.
With international visitors accounting for the majority of Ireland's tourism income, the Confederation argues that the cap is hampering the country's ability to attract more travellers.
It has urged the government to lift this cap and, at the same time, enhance support for regional airports like Cork and Shannon to help spread visitor traffic more evenly across the country.
Cost remains a key concern for tourism and hospitality businesses.
Ireland was recently ranked as one of the most expensive countries in the European Union, a reality that directly affects prices for accommodation, dining and activities.
Despite this, Ireland continues to offer strong value to visitors through quality experiences.
To help alleviate some of the financial strain on businesses, ITIC is advocating for the reinstatement of the 9% VAT rate for the hospitality sector, which was temporarily reduced during the pandemic but later reverted to 13.5%.
The organisation also suggests extending this reduced rate to include visitor attractions and activity providers, allowing them to remain competitive and reinvest in services.
While critics have questioned whether such a tax reduction is necessary, given the relatively strong performance of some larger firms, ITIC maintains that most tourism businesses operate with very slim margins and are struggling with rising expenses.
Its leadership has also expressed openness to targeted relief measures that would focus support on smaller, homegrown enterprises rather than international chains.
The tourism industry is one of the largest sources of jobs in Ireland and supports around 250,000 workers, particularly in rural areas.
ITIC stresses that maintaining and growing these job numbers depends on the sector's ability to stay competitive and attract a steady flow of international visitors.
As the global travel market becomes more crowded and cost-sensitive, it argues Ireland must find ways to stand out beyond price.
That means doubling down on quality, improving infrastructure and ensuring that visitors continue to feel their time in Ireland offers genuine value.
See More: ITIC, Tourism, Tourism Ireland
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