Fáilte Ireland says loss of tourist beds to refugees no longer critical

Number of beds registered with the tourism organisation that were contracted to the State fell to 14,030 in May, a 20.4% drop from November, and a 44.1% drop over the past year

The tourism industry in Ireland has warned of long-term impacts from the use of large numbers of bed spaces for refugees. File picture: Don MacMonagle

The number of tourism bedspaces contracted by the Government for refugees has fallen by more than 20% in the past six months.

A report from Fáilte Ireland said the number of beds registered with the organisation that were contracted to the State fell to 14,030 in May. This represents a 20.4% drop from November and a 44.1% drop over the past year.

A further 43,400 non-registered beds remain contracted to the State, with Fáilte Ireland estimating up to 21,700 of these would normally be used for tourism purposes. The tourism industry in Ireland has warned of long-term impacts from the use of large numbers of bed spaces for refugees. 

The sharp rise in refugee numbers in the wake of the Russian invasion of Ukraine saw the issue peaking in late 2022, when one in four tourism beds were occupied by refugees or asylum seekers.

Speaking in early 2023, Fáilte Ireland chief executive Paul Kelly said housing displaced Ukrainian citizens and international protection applicants in tourist accommodation was not a good solution for them or for tourism long term. He said ringfencing so much hotel accommodation for non-tourism purposes was putting the survival of some downstream businesses at risk.

“We estimate that this will cost the non-accommodation tourism sectors over €1bn in lost revenues this year," he said. 

"This will be a real loss, as we know, from inbound agents that many visitors who want to come to Ireland are now booking other countries simply because they cannot find accommodation in Ireland."

The Fáilte Ireland report said the percentage of registered bedstock under State contract had fallen steadily from 12% to just below 6% nationally. However, four counties have 10% or more of their stock under contract: Wicklow, Clare, Meath and Louth.

"For most counties, the impact on destinations has reduced significantly and is no longer at a critical level. However, some areas are still challenged in the peak season," the report states.

Failte Ireland also said the 6% average may understate the impact, as many tourism beds are unregistered.

A separate Fáilte Ireland survey report, published this week, found more than half of tourism businesses had seen their revenues drop this year, with 60% of operators blaming US president Donald Trump's "radical" economic policies for the downturn.

Fálte Ireland's tourism barometer report shows revenue are down in every sector and region compared to last year, with B&Bs, self-catering operators, food and drink establishments, and tour guides being worst affected.