Nurturing busy US-Irish tourism in both directions
According to US Travel data, 500,000 Irish tourists visited the US last year, an 8% year-over-year increase.
There is synergy between Ireland and the US; for many reasons, not least being the fact that both countries have long been associated with the trade relations that bind us — that and our mutual love of playing ball. Because both benefit when we play trade ball with one another, this we do, in spades.
Of course, where there’s transatlantic trade, there’s travel and tourism. These are matters about which Eoghan O’Mara Walsh — in his capacity as CEO of the Irish Tourism Industry Confederation (ITIC) — knows most.
Currently, over 900 Irish-owned companies are exporting to the US, with more than 70% of them maintaining a full-time presence there. Collectively, these organisations provide employment for more than 100,000 people across the US. There is reciprocity: Ireland serves as the gateway to Europe for the nearly 970 US companies operating in Ireland, companies that directly or indirectly employ 378,000 people here and contribute over €41 billion annually to the Irish economy.
In 2023, US investment in Ireland was valued at approximately $491.25 billion. Meanwhile, Irish-origin investment in the US reached $322 billion, making Ireland the seventh-largest source of foreign direct investment (FDI) in the US. In the same year, Enterprise Ireland client companies exported $5.9 billion worth of goods and services to the US.
Tourism is another vital sector benefiting from the strong ties between the two countries. The American tourism market represents approximately 33% of Ireland’s overall tourism economy. O’Mara Walsh says increased direct air access across the Atlantic has been key to the significant growth in value of US tourism into Ireland.
“This has been a real boom for Irish tourism,” he says. “American tourists tend to spend more than visitors from other countries. They typically stay for an average of 10 days, exploring different regions of Ireland and engaging in a wide range of tourism activities.”
According to US Travel data, an estimated 500,000 visitors travelled from Ireland to the US last year, reflecting an approximate 8% year-over-year increase in that cohort. There’s value there, not least because a daily long-haul international flight can generate more than $160 million annually in visitor spending.
Looking more broadly ahead, the US Travel Association forecasts an 8.8% increase in inbound international visits to the US in 2025, with an additional 8.9% growth expected in 2026. The US Travel Winter 2025 Forecast indicates that healthy profit margins for companies and continued corporate investment bode well, with business travel in the US projected to grow by 4% this year, reaching $316 billion in spending.
On the challenges currently being faced by the Irish tourism sector, O'Mara Walsh says the controversial passenger cap at Dublin Airport hinders growth in the tourism sector.
Acknowledging the high cost of construction in Ireland, he opines “more could be done” to incentivise the construction of hotel stock, then says: “Planning is the big issue. Planning delays and our system of appeals are prolonging the time it takes to build something. It also adds a lot of cost, and turns people off. Of course, the Dublin airport passenger cap is also a planning issue. I think the whole planning system in Ireland needs to be reviewed to make it more fit for purpose.”
Does he feel optimistic about the cap being removed?
He hesitates: “I am, and I am also worried about delays. The arguments in favour of lifting the cap are compelling. We are a small island nation on the western edge of Europe. As we have no roads, tunnels or bridges to the European continent or other markets, people can only get here by air or by sea.
“Obviously air is the main route of traffic. So if you have an arbitrary cap on arrivals into and departures out of an island nation, you are going to immediately limit the potential of the country. We are anxious to see that in the current government’s programme for government there is a stated commitment to lift the cap. The issue is how long that will take. If we are waiting for the planning process to take its course, it could take a number of years, which would be hugely problematic. There needs to be legislative intervention.”
Despite the challenges, Ireland’s tourism industry remains resilient. O'Mara Walsh notes that there are about 7,000 hotel rooms currently under construction, which should help alleviate some of the pressure. Referencing new developments, such as the five-star Sofitel hotel currently being built at Dublin Airport, he says this is “a positive step forward”.
In terms of direct connectivity, new developments are underway to strengthen links. These include the launch planned by Aer Lingus, for May of this year, of a new transatlantic route between Dublin and Indianapolis — a city known for hosting major conferences and global events.
Of this, Aer Lingus CEO, Lynne Embleton says: “With Indianapolis’ vibrant industries and rich cultural heritage, and Dublin’s strategic position as a gateway to Europe, this new route will facilitate partnerships and opportunities on both sides of the Atlantic. The direct connection will ensure smoother travel for business and leisure travellers, while also strengthening cultural and commercial ties between the two regions.”
Tyler Gosnell, international inbound travel managing director at the US Travel Association, says: “The addition of multiple new direct flights is an encouraging development and one that will help the United States to be a more competitive, accessible destination for Irish visitors. Welcoming a growing number of visitors to the US from Ireland and beyond, is critical to the success of the US travel economy.”
In September last, Eli Lilly, a major pharmaceutical company headquartered in Indianapolis, announced plans to invest €1.6 billion into its Irish operations in Cork and Limerick. This planned expenditure underscores the ongoing and mutually fruitful economic ties between the two countries.
While the US market remains crucial to Irish tourism, competition from Scotland, Scandinavia and other regions in Northern Europe, continues to grow. O’Mara Walsh says that like Ireland, the tourism focus of these countries is not on sun holidays. “We trade on landscape, culture, friendliness and people,” he says.
“As there are other countries that are quite keen to eat our lunch, we have to fight hard to win business. The tourism sector is very competitive. While we’re in a strong place at the moment, we can’t take anything for granted.
“We must work hard to maintain our competitive edge,” he says. “Also, to maintain direct air access into Shannon Airport, as that’s important for tourism along Ireland’s west coast.”
Highlighting then the importance of diversifying Ireland’s tourism market portfolio, he says: “Irish tourism should always have a balanced portfolio of markets. While the US market — which has grown considerably in recent years — is the most important for us, it is essential to increase Ireland’s presence in other markets, particularly in GB and Europe.”
Acknowledging that the GB, French and German markets are currently ‘soft’ and pose challenges, he says targeted marketing and improved air and sea access can help Ireland grow its tourism footprint beyond the US.
“If something were to happen that impacted the US market — such as the dollar suddenly weakening or the introduction of new trade tariffs, or a fall in tourism from the US — Ireland would then at least be able to compensate to a certain extent from the GB and European markets,” he says.
Looking to the future, O'Mara Walsh remains optimistic about growth. Despite challenges such as rising costs and competitive pressures, ITIC forecasts a 5% to 7% growth in tourism revenue in 2025. To sustain this trajectory, he says Ireland’s government must prioritise the tourism sector by removing the roadblocks:
“Tourism is the largest indigenous industry in Ireland and a key regional employer, particularly along the Wild Atlantic Way, where it is often the main economic driver. It is crucial that the Irish government continues to recognize the importance of tourism and invests in its future growth.”
