Tourism levels up significantly in 2023 as domestic overnight trips rise 7%

The report also noted an increase in domestic tourism, which was up for 64% of hotels and 52% of attractions.

Visitor levels across Ireland increased significantly last year, with almost 60% of firms within the tourism sector reporting an increase in business compared to 2022.

Latest figures from Fáilte Ireland point to a strong performance across several sectors, with those benefitting greatly from inbound tourists posting the most positive results.

Inbound tour operators and hotels both posted annual growth of over 75%, with attractions and tour guides both increasing by 72% compared to 2022.

The same sectors reaping the benefits of inbound tourists also boasted the highest proportions of profitable businesses, with a rise in turnover across several sectors offsetting an increase in costs predominantly driven by payroll and energy hikes.

Despite these rising costs, most hotels managed to increase their profitability in 2023, with almost all managing to raise their average room yield. 

Rising costs once again continued to dominate concerns amongst tourism operators and businesses, with Fáilte Ireland noting that the increase in minimum wage was now adding to the existing cost pressures of doing business.

The group also acknowledged the role of macro-economic factors in rising prices which were beyond the control of the Irish Government, it added that the pressure could be eased by a reduction in Value-added tax (Vat) for the industry.

"VAT is a consumer tax, but the rise can affect demand and so businesses can lose out from lower volumes of business, or they try to absorb the cost themselves," said Fáilte Ireland. 

The report also noted an increase in domestic tourism, which was up for 64% of hotels and 52% of attractions. New figures from the Central Statistics Office (CSO) released on Wednesday also point to a rise in domestic tourism, with the first nine months of 2023 reflecting a 7% increase annually in domestic overnight trips.

Nights spent in Irish hotels by Irish residents amounted to 2.5 million in the third quarter of 2023, according to the CSO, while nights spent in self-catering or rented accommodation totalled 2.7 million.

"In the first nine months of 2023, Irish residents also took 11.3 million domestic same-day visits and expenditure amounted to €500 million," said CSO statistician, Brendan Curtin. 

"The figures highlight the continued growth in domestic travel in the first nine months of 2023 following the disruption caused by covid restrictions."