Dáil debates
Thursday, 3 April 2025
Saincheisteanna Tráthúla - Topical Issue Debate
Tourism Industry
8:10 am
George Lawlor (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source
In light of the recent statistics released by the Central Statistics Office, which indicate a very concerning 30% decrease in foreign visitors to Ireland year on year, it is clear the Government simply must acknowledge the gravity of this situation and must commit to addressing the underlying causes and implications of this decline. A total of 304,000 foreign visitors completed a trip to Ireland in February. This was down from 433,000 in the same month last year. As we know, tourism is one of the largest indigenous industries and the biggest employer in Ireland with 257,000 people working in the sector. Ireland took in €6.2 billion from overseas tourists in 2024 despite a 3% reduction in bed nights. It has been said by observers in the industry that last month's decline represented an acceleration of the downward trend in foreign visitor numbers that saw first indications last September.
The tourism sector is one of the cornerstones of our economy, particularly in a county like my own of Wexford, contributing significantly to job creation, community development and cultural exchange. A reduction in foreign visitors not only impacts businesses reliant on tourism but also affects local economies, indigenous jobs and the vibrancy of our communities. As such, the Government simply has to recognise the need for a strategic and multifaceted response to challenges faced by the industry and everyone involved. We must conduct a thorough analysis of the factors contributing to the decline. Is it the geopolitical situation? Is it the cost of visiting Ireland? Why is it happening and why is there such a big reduction? Understanding these dynamics will enable us to formulate effective strategies to attract visitors back to our shores.
In response to these findings we must actively work to enhance our marketing efforts to promote Ireland as a premier travel destination. This includes a renewed focus on digital marketing campaigns targeting key international markets, as well as collaborations with airlines and travel agencies to incentivise travel to Ireland. We must also emphasise our unique cultural heritage, our natural beauty and our hospitality to entice potential visitors.
The Government must commit to investing in infrastructure and services that enhance the visitor experience. This includes upgrading our transport links, looking at regional airports such as Waterford, improving accommodation options and ensuring our attractions are accessible and appealing. A positive visitor experience is crucial for encouraging repeat visits and fostering positive word of mouth recommendations. Additionally, there should be engagement with stakeholders in the tourism sector to gather insights and recommendations on how to better support businesses in coping with the downturn. This may involve exploring financial aid programmes, grants and training initiatives aimed at helping businesses to adapt to the changing landscape of tourism. There must also be collaboration with our international partners to promote safe travel practices and restore confidence in international travel. By fostering a co-operative approach with other countries we can ensure Ireland remains an attractive and safe destination for travellers.
A 30% decrease in foreign visitors is a significant concern. We must remain steadfast in our commitment to revitalising the tourism sector. Through comprehensive analysis, strategic marketing, infrastructure investment and stakeholder collaboration we must all put our shoulders to the wheel to restore Ireland's position as a leading travel destination and support the recovery of our economy. Will the Government commit to supporting all these urgent requirements in an effort to reverse the radical downturn we have seen in the number of foreign visitors coming to our shores?
Emer Higgins (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source
I thank Deputy Lawlor for raising this important matter. My very first job after I graduated was working for Fáilte Ireland so I have been following these statistics with great interest. I am taking this matter on behalf of the relevant Minister.
The latest CSO figures for overseas visitor numbers were published last Friday, as Deputy Lawlor said. These figures were specifically for February 2025 and showed that 304,300 foreign visitors completed a trip to Ireland in that month, and these visitors spent €196 million in Ireland, excluding their fares for getting here and leaving. The visitor numbers and the associated revenue represent an approximate 30% reduction compared to February of the previous year.
In relation to how the data provides an insight into the outlook for Irish tourism this year, it is important to recognise that the figures published to date for 2025 only cover January and February. In recent years, these two months typically have accounted for less than 10% of the total annual overseas visitor spend. Furthermore, I understand that sentiment from the tourism sector itself is far more positive, with research showing that 39% of businesses anticipate an increase in visitor levels this year, while 47% expect growth in overseas visitors.
Earlier this week, officials from the tourism division met with the CSO and the tourism agencies to discuss these overseas visitor figures. I understand a meeting with tourism industry representatives, the tourism agencies and the CSO will take place tomorrow to consider other sources of data that could assist in gathering a more complete picture of the recent overseas tourism performance. This will assist the tourism agencies to put in place targeted activity for the rest of the year to ensure we achieve our long-term growth targets. In this regard, it is worth remembering we are coming off the back of a strong year for tourism in Ireland, when overseas visitors spent more than €6 billion, representing an increase of 11% compared to 2023.
I am, however, well aware of the challenges that lie ahead for Irish tourism. With macro-economic uncertainty in the world now, there is a risk that consumers will become more cautious, including when it comes to travel. On the positive side, there are also many opportunities to take advantage of our wonderful tourism offering. As Deputy Lawlor is aware, the Dublin Airport cap is on hold for the summer months, and it is encouraging to note that we will have 110% of the air seat capacity we had last summer from key source markets such as the United States and Canada. Tourism Ireland will be supporting partners operating new routes, such as Indianapolis and Nashville, with demand generation and partnership activities.
In the longer term, the review of the Dublin Airport cap is an important commitment in the programme for Government alongside our support for regional airports. We can ensure the air capacity is there to enable real tourism revenue growth in the years ahead. We can also look forward to major sporting events that will bring significant tourism benefits to our shores. The hosting of The Open at Royal Portrush in July will ensure golf enthusiasts travel to other areas of the island to experience at first hand our exceptional golf courses. We will also be playing host to significant US visitors on foot of the American college football game in August and the NFL game later in the autumn. We know ongoing Ireland's selling points to visitors are our scenery, culture, history and craic. Tourism Ireland will be launching a new campaign in June, focused on helping people get around the regions and explore the island.
Earlier this week, the Meitheal event was held in Killarney. This is a flagship tourism trade event. The Tourism Policy Framework 2025-2030 was published by the previous Government last November. I understand my colleague, Deputy Peter Burke, to whom ministerial responsibility for tourism is transferring, has asked officials to consider how commitments in the new programme for Government align with the policy framework, and to prioritise the finalisation of a new tourism policy which reflects the programme for Government and other commitments. Once this work is complete we will have more insights into this.
8:20 am
George Lawlor (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source
I thank the Minister of State for her response. I mentioned in my opening remarks that I wondered if the geopolitical area was the reason for the difficulties we were seeing with foreign visitors coming to Ireland. With President Trump and President Putin's antics, the war in Ukraine and other disturbances and wars and atrocities around the world, is that playing a role in the American market particularly? I was in Savannah a few weeks ago and the level of interest in Ireland, albeit over the St. Patrick's Day weekend, was immense. Savannah has a population of approximately 150,000 people and three quarters of a million people attended the parade, such was the level of interest. When we talk about roots and things like that, we should be looking to identify areas in the United States to which we can have direct flights to enhance the possibility of visitors from those areas returning to Ireland.
I appreciate the Minister of State saying that it only covers January and February, but I sincerely hope it is not a trend, because if it is, we are in some difficulty. I welcome the meetings between the various agencies, and this should be an ongoing event to ensure we have our finger on the pulse. The distraction of what is going on in the world with the tariffs and so on coming down the tracks may have distracted us and we may have taken our eye off the ball, given these figures.
I extend an invitation to everybody to Wexford. It is a wonderful county with wonderful beaches and heritage, particularly this year when we again host Fleadh Cheoil na hÉireann. I know the Minister of State has a social event coming up in the next couple of weeks and maybe she would see Wexford as a destination for that. I thank her for her response, and I look forward to the improving statistics.
Emer Higgins (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source
I thank the Deputy for that kind invitation. I attended the Fleadh Cheoil in Wexford last year and it was fantastic. As the Ceann Comhairle will be aware, it was fantastic to see the town buzzing and to see so much activity and spin-off trading.
I thank Deputy Lawlor for raising this important issue. Since the Covid pandemic, tourism has shown its resilience time and again and it has played a significant part in our economic recovery. Last year was a strong one from a tourism perspective. More than 6.5 million overseas visitors came to our shores and, in terms of tourism sentiment, it is encouraging to note that the strategic research and insight findings from Fáilte Ireland's tourism barometer earlier this year showed that 39% of businesses expected their visitor levels to be up this year. Overseas visitors underpin the positive expectations, with 47% of businesses expecting an increase from that market. While CSO figures for the first two months were disappointing, like the Deputy, I look forward to being updated on the engagement between the CSO, the tourism industry and the tourism agencies to further examine this data and the context to give us more insights into it.
There are real grounds for optimism in the months ahead. In this regard, intensive marketing campaigns are underway in all our main overseas markets to ensure growth returns while Fáilte Ireland continues its domestic activity. As we approach peak tourism season, the tourism agencies are continuing to work hard with all their partners, including air and sea carriers, to ensure Ireland is seen as a must-visit destination. From a Government perspective, what we discussed earlier around the cap is important and it is also important to see those new routes coming onstream. I take the Deputy's feedback about Savannah and that is perhaps something we should look at. The programme for Government comprehensively sets out the Government's ambitious plans to strengthen and enhance the tourism sector, and I look forward to working with the Deputy on that.