Almost 1 in 5 tourism businesses in Ireland claim the re-election of Donald Trump as US president is a cause for concern for the sector in 2025, according to new research by Fáilte Ireland.
Figures published by the national tourism development authority show 18 per cent of operators in the tourism industry fear “Trump 2.0” could have a negative impact on their business this year.
In contrast, just 5 per cent believe Trump’s return to the White House could have a positive effect on visitor numbers and tourist revenue.
Overall, expectations are moderately positive among businesses about the coming tourist season with 39 per cent expecting visitor levels to increase in 2025 while 42 per cent believe tourist numbers will remain similar to last year.
More than half of all tourism businesses (52 per cent) cite positive reviews and recommendations as the main reason to feel positive about this year’s performance with 47 per cent also referencing repeat visitors for their optimism.
The latest Fáilte Ireland “tourism barometer” report shows the impact of Trump’s re-election is not considered a major issue in either positive or negative terms compared to a range of other factors such as marketing, domestic tourism, rising costs, and VAT rates.
In addition, 25 per cent of businesses in Dublin have cited anti-social behaviour in their area as a concern with some reporting that their customers do not feel safe.
The report also shows tourism businesses reported a mixed performance for the sector during 2024 with just 46 per cent claiming revenue rose during the year.
It reveals that 36 per cent of tourism businesses stated they suffered a drop in income last year, while 18 per cent had similar levels of turnover to 2023.
The survey commissioned by Fáilte Ireland shows the strongest performing sectors were inbound tour and coach operators and destination management companies (DMCs) with 74 per cent reporting a growth in revenue followed by the operators of attractions (61 per cent).
More than two-thirds of tourism businesses admitted raising their prices during 2024, with the vast majority claiming they had done so for cost reasons.
Price increases were most likely to be reported by hotels, tour operators, and the food and drink sector with more than 8 out of 10 businesses raising prices during 2024 compared to approximately half of attractions, activity providers, and self-catering operators.
The figures show that 28 per cent of companies that increased their prices last year said the increase was at a level below cost increases with 9% claiming price increases were at a rate greater than their costs.
In spite of significant cost challenges, 54 per cent of respondents reported making a profit in 2024 with a further 24 per cent breaking even.
However, more businesses claimed their operating margins had decreased (44 per cent) compared to those who had said they had grown (36 per cent).
The survey of 920 tourism businesses, which was conducted last month, shows that tour operators and DMCs again reported the best growth in operating margins with 55 per cent citing an increase.
In contrast, almost two-thirds of restaurants and cafés found their margins squeezed further last year with 51 per cent of such businesses reporting a loss compared to 16 per cent across all other sectors.
The main concern of operators in the tourism sector remains costs, particularly about energy and payroll.
According to tour operators, tour guides, and DMCs, there is a strong interest from overseas in visiting Ireland.
However, they claim the cost and availability of tourist accommodation are affecting the conversion of interest into actual visits.
On a regional basis, tourism businesses in all parts of Ireland reported that revenue levels managed to match or improve on 2023 figures overall.
However, Dublin fared slightly better than other parts of the country with 54 per cent of businesses in the capital reporting an upturn in turnover compared to 46 per cent in Ireland’s Ancient East region, 43 per cent on the Wild Atlantic Way, and 37 per cent in Ireland’s Hidden Heartlands.
The research shows that overseas tourists, particularly from North America, provided the mainstay for many sectors including tour operators, attractions and hotels.
However, the domestic tourism market was considered mixed during 2024 with poor summer weather seen as having an impact on numbers of Irish holidaymakers.
Respondents indicated that revenue from tourists from Britain and mainland Europe was below 2023 levels.
They also claimed there was a general decline in the popularity of mid-week breaks and longer leisure stays by visitors in 2024.
Sourse: breakingnews.ie
