THE IRISH TOURISM Industry Confederation (ITIC) has estimated that 7 million international tourists came to Ireland this year, a 73% recovery compared to the pre-pandemic peak of 2019.
Of the 7 million international tourists this year, ITIC estimate that 2.6 million came from Mainland Europe, down 28% on 2019, 2.4 million came from Britain (-30%), 1.5 million came from North America (-22%) while 0.46 million came from long haul markets (-32%).
With travel restrictions eased since March, the speed and strength of the recovery in travel to Ireland has exceeded ITIC’s expectations and the surge in demand surpassed most industry projections.
Chairperson of ITIC, Elaina Fitzgerald Kane, said: “2022 has thankfully been a stronger year than anticipated with pent-up demand, deferred bookings and accumulated savings all boosting business this year.”
“It is vital that the sector returns to sustainable growth”.
ITIC welcomed the growth in air access to the country but expressed significant concern that continued recovery would be threatened by soaring inflation, the energy crisis, and the impact of Government contracts with tourism accommodation suppliers.
Estimates for next year range from a dip on this year’s performance to single digit growth.
ITIC estimate that a full tourism recovery to 2019 levels is not likely to be achieved until 2026.
CEO of ITIC, Eoghan O’Mara Walsh, expressed concern that tourism government contracts for Ukrainian refugees and asylum seekers in tourist accommodation would severely restrict the broader tourism economy’s recovery.
“We now estimate that at least 28% of all tourism beds in regional Ireland are not available to the tourism economy due to Government contracts,” O’Mara Walsh said.
“While hotels and guesthouses are part of the solution to accommodate refugees, they cannot be the only solution. If this level of tourism accommodation stock is not available next year for international visitors it could cost the broader tourism industry up to €1 billion in lost earnings”.
ITIC state that downstream businesses such as shops, attractions, pubs, restaurants and cultural experiences will be hit particularly hard. Fáilte Ireland data shows that for every €1 a tourist spends on accommodation, €2.50 is spent on ancillary tourism services.
ITIC has also argued that the government should retain the current 9% VAT rate, rather than reinstate the 13.5% rate which will come into effect from 1 March 2023.
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