Tourism numbers down 13% in June compared to 2019 and are more than a quarter lower (26%) this year to date, according to the Irish Tourism Industry Confederation (ITIC).
ITIC warned that a shortage of accommodation, car hire and labour pose a risk to further recovery in the tourism sector as it continues to recover following two years of lockdowns and public health restrictions.
The ITIC's monthly tourism dashboard, published in association with AIB, show that the tourism sector is gathering pace but there remains concern as to whether the recovery will continue to strengthen beyond the traditional summer season.
Arrivals from continental Europe were down just 9% on 2019 while 260,000 people came to Ireland from North America. Inflation, meanwhile hit 9.6% and the cost of oil, a key determinant in the price of airfares, was double what it was pre-pandemic.
"Comparing tourism monthly data to 2019 we feel is the best comparison and will help track recovery," said Elaina Fitzgerald Kane, chair of the ITIC. "Pre-pandemic tourism was the country’s largest indigenous industry, its biggest regional employer, and contributed €2bn annually to the exchequer and it is vital that the sector returns to sustainable growth.
"A myriad of factors are distorting the normal Irish tourism market, including deferred bookings, pent-up demand, government contracts, the limited pipeline of accommodation, extraordinary inflationary pressures and capacity constraints, especially around the availability of people.
"One thing that is for sure is that a much softer tourism market is expected in 2023." ITIC now estimates that the tourism market will not see a full recovery until 2026.
Eoghan O'Mara Walsh, CEO of ITIC, added: "We are now able to estimate for the first half of the year and momentum continues to build in terms of tourism’s recovery. However it is apparent that supply shortages in accommodation, car hire and labour are likely to restrict growth over the coming months.
He further urged the government to maintain pro-tourism policies in Budget 2023, including the 9% rate of VAT for hospitality businesses.
(Pic: Getty Images)