The Irish Hotels Federation (IHF) has expressed serious concerns about the ongoing drop in tourism expenditure by overseas visitors.

According to the latest figures from the Central Statistics Office (CSO), there has been a 9% drop in expenditure by overseas visitors in August compared to the same month last year, despite an increase of 1% in the number of visitors coming to Ireland.

Some 772,800 foreign visitors completed a trip to Ireland in August 2025, spending €744m on their trips (excluding fares) and staying for an average length of 8.6 nights, down from 8.7 nights the previous year.

This decline is part of a broader trend, with overseas expenditure down over 13% year to date. 

IHF Chief Executive Paul Gallagher says: “Despite hopes for a reversal in this trend during the peak summer months, the situation has continued to deteriorate.

“We have continued to see a softening in revenue year on year.

“This is part of a worrying decline in wider visitor spend throughout our tourism industry, as indicated by recent CSO figures.”  

“Tourism businesses the length and breadth of the country now find themselves operating under an increasingly challenging environment while struggling to deal with unsustainable increases in business costs.

“It is now essential that the Government takes decisive action to put Irish tourism and hospitality on a more stable footing.” 

“One crucial step would be to restore the 9% VAT rate for food-related services.

“This measure would provide much-needed assistance to struggling businesses, which collectively support over 270,000 livelihoods and contribute significantly to the economy.

“Importantly, more than 70% of these roles are outside Dublin, making our industry a key driver of regional employment, economic diversification and rural development.

“Given the enormous challenges facing hospitality food businesses, it is vital that a reduction in the VAT rate is implemented from the start of January 2026.”