Aidan Farrelly (Kildare North, Social Democrats)
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289. To ask the Minister for Culture, Heritage and the Gaeltacht his plans to address the issue of price gouging in the tourism sector in the context the State hosting high-profile international sporting events and performances. [9995/25]

Patrick O'Donovan (Limerick County, Fine Gael)
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It is vitally important that Ireland maintains its reputation as a value for money destination and that the industry protects the value for money proposition, to ensure that our high quality reputation is maintained, and that new and repeat visitors continue to come here.

It is recognised that businesses, including hotels and others within tourism, continue to face cost pressures, due to inflation and other economic factors. Rising costs, however, are not unique to the tourism industry and are a challenge for the wider economy. Businesses need to be able to make a profit, but they must also pay attention to their pricing and how they can continue to deliver added value, to ensure their long-term commercial viability.

Commercial decisions, such as pricing, are the sole responsibility of business owners. These pricing decisions are driven by a combination of factors, that include the costs that need to be recovered and the competitive price the market will bear, based on the balance between supply and demand.

While there is fair value to be had in tourism accommodation, including hotels, around the country for much of the year, there are specific price spikes at specific times and locations, often coinciding with concerts and sporting events. These spikes, or compression events that occur when demand is highest, have the potential to cause reputational damage for the sector.

These are issues on which my colleague, Minister Peter Burke TD, in light of his role as the Minister who will have formal responsibility for Tourism once the function has been transferred to him by Government Order, will continue to engage with the wider tourism sector.

In April 2024, Fáilte Ireland published its report on Dublin hotel prices which looked at hotel pricing data for Dublin in summer 2023, benchmarked against European competitors. This report found that despite more compression nights, Dublin hotels were broadly in line with peer cities, when it came to room rates charged and operating margins and Dublin was not an outlier on pricing versus its international comparators.

International sporting events provide a major boost for tourism and the wider economy, as well as delivering sporting legacy and reputational benefits. The August 2024 Aer Lingus College Football Classic, for instance, provided a major boost for tourism, delivering an estimated €115 million to the economy. Coupled with the 2023 game between Notre Dame and Navy which generated over €180 million to the economy, large-scale events such as these, which are supported financially by the Exchequer via Fáilte Ireland and by Dublin City Council and by other State agencies, are important in terms of driving tourism demand as they provide international visitors with a compelling reason to choose the island of Ireland as a wonderful holiday destination as well as a top location for sporting events.

2025 will be another important year in this sports tourism space as preparations continue for the Ryder Cup at Adare Manor in Limerick in 2027, the co-hosting with the UK of the UEFA Euro 2028 championships, the 2025 edition of the Aer Lingus College Football Classic in August which will see Kansas State and Iowa State universities competing, as well as the hosting of a first-ever NFL regular season fixture later in the autumn.