Brexit remains a challenge despite positive tourism figures

The first half of the year has been a good one overall for Irish tourism with overseas visitors up 3.7% - but Brexit remains a challenge, with a drop in the numbers of British and mainland Europe visitors in May.

CSO figures for the first five months of 2019 indicate that overseas arrivals were around 140,600 more than in January-May 2018.

At a mid-year review of overseas the sector, Tourism Minister Shane Ross and Tourism Ireland CEO, Niall Gibbons, welcomed the growth in overseas visitors.

However, they also noted that the month of May indicated a continuing weak trend – with a fall of -0.4%.

“North America and long-haul markets continue to show consistent growth so far throughout the year,” said Mr Gibbons.

North America grew by 9.1% in the first five months of 2019, an extra 67,700 US and Canadian arrivals, and long-haul markets are up 7.2%.

"However, Britain and Mainland Europe have shown a weaker pattern as the year unfolds – with Britain down 4.4% and Mainland Europe down 4.6% for the month of May.

"This leaves both market areas up slightly for the year overall, with Britain up by +0.8% and Mainland Europe by 3.2% for the January-May period.

Brexit remains the biggest ongoing challenge – causing uncertainty in Britain and in some mainland European markets.

“Brexit remains an ongoing challenge, giving rise to consumer uncertainty, particularly in Britain and some Mainland European markets,” said Mr Gibbons.

“The fall in the value of sterling has made holidays and short breaks here more expensive for British visitors and has made Britain more affordable for visitors from many of our top markets.

"Ireland needs to be seen as offering an excellent value-for-money holiday experience, so competitiveness and value for money remain more important than ever in Britain. We continue to monitor the situation closely, working in conjunction with our British-based Brexit Taskforce.

“Last month, we unveiled a new strategy to grow tourism from Britain, setting out an ambitious target to grow revenue from British holidaymakers by +25%, to €705m, by 2022.

Minister @Shane_RossTD at our mid-year review of overseas tourism this morning pic.twitter.com/rWfBICTvnp

— Tourism Ireland (@TourismIreland) July 15, 2019

"The strategy was developed cognisant of the ongoing Brexit negotiations; and the recommendations of the strategy remain valid and can be flexed under all potential outcomes of the negotiations.”

The review notes that the fall in the value of sterling is impacting Irish competitiveness and has exacerbated the perception of higher prices here than in Britain.

It has also made Britain more affordable for visitors from many of our top markets. The Brexit extension will continue to cause uncertainty for the second half of 2019.

Shane Ross it was encouraging that overseas visits have continued to grow in the first half of 2019, albeit at a slower rate than in previous years.

“Following the strong growth in recent years, it was always going to be a challenge to grow the numbers further this year,” he said.

“This continued growth is welcome. My Department’s policy is focused on continuing to expand tourism in a manner that is sustainable, with an increased focus on the regions and seasonality.

We want to see more overseas tourists coming to Ireland outside of the peak season and spending more time in destinations which are not traditional tourist hotspots.

“The additional funding allocated to tourism in Budget 2019 has allowed the tourism agencies to provide fresh impetus this year, in terms of both product development and marketing."

Mr Ross said it was essential that we continue to promote and expand our tourism offering around the world in the face of challenges such as Brexit and other international economic uncertainties.