Majority of tourism businesses reported poor summer trading, Fáilte Ireland survey shows

Seán McCárthaigh

A majority of tourism businesses have reported either a decline in revenue or no increase in turnover this summer, according to a new survey by Fáilte Ireland.

The latest “Tourism Barometer” survey by the national tourism development authority found 43% of all tourism businesses had reported a fall in income this summer compared to the same period in 2024, with a further 20% reporting no change in business levels.

Only just over a third of businesses (37%) claimed revenue had increased.

Although turnover levels overall have declined, Fáilte Ireland said the outcome was still more favourable than anticipated especially given subdued figures reported in the first few months of the year and the cautious outlook which many tourism businesses had about the summer.

“To some extent, the summer has worked out better than expected,” it observed.

Some sectors reported better performances than others with 54% of hotels reporting an increase in turnover this summer as well as 46% of tourist attractions.

Hotel owners claimed the number of longer stays was down significantly but the effect was somewhat cushioned by an increase in shorter breaks.

In contrast, 64% of restaurants and 52% of B&Bs said this summer had been particularly difficult for them.

Regionally there were also some differences with businesses located along the Wild Atlantic Way and in Ireland’s Ancient East managing generally to maintain revenue on a similar level to summer 2024.

However, 50% of operators in Ireland’s Hidden Heartlands – which cover the midlands region – as well as 48% of tourism businesses in Dublin claimed overall revenue was down this summer.

The survey showed that 44% of respondents claimed there was a decrease in revenue from visitors from North America this summer, although Fáilte Ireland remarked that the decline could have been more severe.

The proportion of businesses which reported business being down from a number of different European markets ranged between 44% for German tourists to 48% for visitors from Britain.

Owners of tourism businesses said costs continued to be the main concern, particularly energy costs, which was cited by a majority of over 1,000 respondents to the survey.

Another major concern is payroll costs which was rated a key factor affecting performance by 81% of hotels and food and drink operators.

Non-accommodation tourist operators, however, claimed the cost of tourist accommodation was their main concern.

They warned that the perception among visitors of a holiday in Ireland representing poor value for money was losing them business.

On a positive note, 55% of tourism businesses said they had received positive reviews and recommendations from visitors.

However, Fáilte Ireland said the industry did not hold high hopes for the remainder of the year based on the results of the survey which was carried out last month.

It showed that 44% of businesses expected trade to be down in the final quarter of 2025 compared to the corresponding period last year.

Fáilte Ireland said the outlook for trade for the remainder of the year was “subdued” across all sectors including among those who had performed relatively well during the summer.

Only 21% of businesses predict they will report an increase in income for the final quarter of the year compared to the same period in 2024.

The impact of international trade tariffs also affected some future plans with 25% of businesses claiming uncertainty created by the issue had a negative effect on their investment plans.

Of those operators who said they were affected, 26% said they had actually cancelled plans, while 35% had delayed investment with a further 39% stating they had scaled back projects.

Some businesses said the uncertainty among American businesses and consumers was a key factor in not taking risks due to a reliance on visitors from the US.

The survey showed the proportion of respondents who cited the “Trump presidency/global economy” as their main cause of concern for business this year has fallen from 60% in May to 44% in September.

The survey also highlighted how some operators are noticing that Irish weather may be a reason why visitors are coming here.

They claimed they had observed a trend where overseas tourists are coming for the cooler weather and avoiding the heat of southern Europe in the summer.