Almost half of Ireland's tourism businesses reported fall in income during summer season

Businesses located along the Wild Atlantic Way and in Ireland’s Ancient East managed to maintain revenue on a similar level to summer 2024.

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 said.

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 44% of respondents claimed there was a decrease in revenue from visitors from North America this summer, although Fáilte Ireland said 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 were cited by a majority of more than 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 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 44% of businesses expected trade to be down in the final quarter of 2025 compared to the corresponding period last year.