State targets 7% annual rise in domestic tourism

Overnight trips fell by 8% last year

Fáilte Ireland said one possible explanation is that the earlier post-pandemic rise in visiting friends and relatives has now eased back towards more typical levels.

The State is targeting a 7% annual rise in domestic tourism over the next five years, despite growth in the sector remaining flat last year.

The national tourism target is a central plank of Fáilte Ireland's new corporate strategy, with the tourism promotion body setting a target to grow domestic overnight revenue from €3.6bn in 2024 to €5.8bn by 2031, implying an average annual growth rate of 7%.

They said growing less mature destinations will be central to the strategy and that seasonality was a concern, with about 50% of tourism revenue currently generated between June and September. The policy therefore requires priority growth be achieved in the October to May period.

Ireland enjoyed a massive surge in domestic tourism in the wake of the covid pandemic and the shutdown of global aviation. The sector has risen by 67% since 2019. 

However, a separate report from Fáilte Ireland highlights the challenges of growing domestic tourism further. A review of 2025 found domestic overnight trips fell by 8% compared with 2024. The decline was driven mainly by a reduction in trips to visit friends and relatives, which were down 20% year on year. Holiday and business trips were broadly stable, down 1% and 3% respectively.

Fáilte Ireland said one possible explanation was that the earlier post-pandemic rise in visiting friends and relatives had now eased back towards more typical levels. The 2025 report also notes the first half of the year was impacted by Storm Éowyn, the Dublin Airport cap and geopolitical uncertainty.

Tourism employment

There is a similar issue with employment. Tourism in Ireland accounts for one in every 10 jobs. The future strategy is targeting 250,000 jobs by 2030, from 228,800 in 2024. However, job growth in the sector last year was up just 0.3%. Ireland will need to achieve 9% growth in employment numbers to achieve 250,000 by 2030.

New initiatives proposed by Fáilte Ireland include the development of a National Tourism Day and a ‘Celtic Trail’ to encourage greater exploration of regional Ireland. A new culinary tourism strategy is proposed to position Ireland's food and drink offering as a key tourism motivator. 

It is also planned to strengthen festivals, events, attractions and visitor experiences that drive visitor spend, generate economic impact, and extend the tourism season.

A central focus of the strategy is improving the competitiveness, productivity and resilience of tourism businesses. Fáilte Ireland said it would help businesses improve performance, increase visibility, convert more demand into bookings and build sustainable long-term growth. 

Tourism minister Peter Burke said: “This strategy provides a clear framework for delivering the ambitions set out in 'A New Era for Irish Tourism', including the target of achieving 7% annual domestic tourism revenue growth. 

"By driving stronger year-round demand, extending the tourism season and supporting growth in less mature destinations, we can spread the economic benefits of tourism more evenly across the country, while strengthening local economies and communities.