Major push needed to boost foreign and domestic tourism after significant drop, report warns
While nearly 1.1 million foreign residents visited Ireland in the first quarter of 2025, this is down from 1.4 million visitors during the same period last year.
The data, showing a 300,000 decrease in visitors, comes from the latest 'SME Monitor' published by the Banking and Payments Federation Ireland (BPFI).
The report highlighted that there is potential for balanced growth in the tourism sector but cost pressures and price increases are presenting risks.
Brian Hayes, chief executive of the BPFI, said: 'Given that global trading conditions are likely to deteriorate, and Ireland's reliance on foreign direct investment, these efforts will be critical to ensuring that growth is more balanced and not overly reliant on unpredictable international trends.'
Last year, Ireland welcomed 6.6 million foreign resident visitors who spent an estimated €8.2bn, including on travel fares, up 12pc from 2023.
'Given their importance to the economy, this trend in foreign visitors should be monitored closely, but domestic tourists also make a crucial contribution.
'Irish residents spent an estimated €3.6bn on domestic travel in 2024, an increase of 15.3pc year-on-year,' Mr Hayes said.
He noted that 80pc of tourism businesses in Ireland expected stable or increased visitor numbers this year.
'Although cost pressures along with continued increases in prices could risk Ireland's affordability and competitiveness in the tourism sector in the future,' he said.
Mr Hayes said that overall, the SME Monitor report found that the economy was 'performing well' this year to date.
Central Statistics Office (CSO) estimates show that Irish gross domestic product (GDP) is up 13.3c when compared with the same quarter last year.
'However, most of this growth was driven by multinational exports,' Mr Hayes said.
He explained that this is largely due to front loading, particularly to the US, by multinational firms reacting to tariff threats by the new US administration.
He added: 'It is encouraging to see that with the publication of the new Tourism Policy Framework for the period to 2030, there are new efforts to boost business tourism and year-round domestic travel.'
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