Major blow for Ireland as tourism could plummet in 2023 as sector struggles to return to pre-pandemic levels

A MAJOR blow for Ireland could be on the way as the tourism sector struggles to return to pre-pandemic levels. 

Ireland is expected to mark a further decrease in tourism in 2023, with pre-pandemic levels unlikely to return until 2026, according to the Irish Tourism Industry Confederation.

Alamy

Alamy

Rising inflation, soaring energy bills and limited hotel bed availability following the government’s decision to house Ukrainian refugees after Russia’s invasion are expected to contribute to further tourism decline this year. 

The ITIC has estimated that a total of seven million tourists travelled to Ireland this year, just 73 per cent of the figures recorded in 2019 before the Covid-19 outbreak.

Of those who entered Ireland in 2022, 2.6 million came from Europe, a figure down by 28 per cent on 2019.

A total of 2.4 million came from the United Kingdom, a decrease of 30 per cent, and 1.5 million visitors came from North America, a 22 per cent decrease. 

Long-haul markets accounted for 0.46 million of the total, which marks a 32 per cent decline.

Commenting on the situation, CEO of ITIC, Eoghan O’Mara Walsh, said accommodation supply would further impact the tourism sector in 2023.

He said: “We now estimate that at least 28 per cent of all tourism beds in regional Ireland are not available to the tourism economy due to Government contracts. 

“While hotels and guesthouses are part of the solution to accommodate refugees, they cannot be the only solution.

Mr O’Mara Walsh added that the relocation of hotel beds had left the tourism industry with limited supply, a move that could cost the sector up to €1 billion.

He said: “If there are no tourism beds in tourism towns next summer there will be no tourism activity and that will have a very negative impact on local economies.”

The ITIC has also warned that the loss in tourism will further impact the hospitality sector as downstream businesses such as attractions, shops and pubs.

However, despite declining numbers of passengers visiting Ireland, things do look set to return to pre-pandemic levels in due course, with the ITIC recording that in September alone, Ireland welcomed more than 900,000 international tourists.