Irish tourism didn’t have a new national policy for 10 years up to this time last year. Now we have had two in the past 12 months. And the difference in the launch of the two policies tells a tale.
In November last year, in the throes of the final days of her term, the then minister for tourism, Catherine Martin, published her Tourism Policy Framework 2025-2030. There was no launch event or fanfare and the policy was quietly released online.
Compare that to the publication last Monday of A New Era for Irish Tourism, where Tourism Minister Peter Burke was one of three Cabinet Ministers, along with two Ministers of State, launching the policy in Belvedere House in Mullingar, Co Westmeath.
Industry leaders were quick to welcome the new policy, which sets growth aspirations out to 2031, with a renewed focus on culinary tourism as well as the regional dispersal of visitors. It’s a statement of intent from Burke and evidence that tourism is now at the heart of Government.
And the high-profile launch of the policy is more than just a change in style. It reflects the fact that tourism, after significant industry case making, has been moved to an economic portfolio and now sits within the Department of Enterprise, Tourism and Employment.
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It is only right that Ireland’s largest indigenous industry and biggest regional employer is treated like the economic engine that it is. No other sector can spread economic benefit to every parish in the State.
Look across swathes of the Wild Atlantic Way – from Kinsale to Bundoran – and tourism is the main show in town. Government has finally acknowledged this and state agencies for tourism – Fáilte Ireland and Tourism Ireland – now sit along other important economic agencies such as IDA Ireland and Enterprise Ireland.
Tourism’s new economic focus has already begun to pay dividends for businesses. The Minister secured the reduced VAT rate for hospitality in the recent budget despite significant public and political resistance. It gives food businesses a buffer from July 2026 onwards as costs of business continue to escalate elsewhere, squeezing already tight margins.
Of course, the 71 recommendations in the new policy need to be implemented in full for it to be impactful. As always, the devil is in the detail.
The revenue growth figure of 6 per cent annually out to 2031 sounds impressive but tourism inflation will have to be tamed for it to be meaningful. CSO data for inflation in the hotel and restaurant sector has for the past three years averaged – yes, you got it – 6 per cent annually. If cost inflation wipes out revenue growth, tourism and hospitality businesses will be no better off.
Ireland’s value-for-money proposition is under pressure and economics 101 suggests that the best way to moderate price increases is through increased supply. One assumes that the department conducted a comprehensive carrying-capacity study of Irish tourism before any future growth targets were set. There are concerning issues in this regard that must be addressed – the Dublin Airport passenger cap remains stubbornly in place; the pipeline of new hotel stock is slowing; and Government’s impending short-term letting legislation risks denuding regional and coastal Ireland of tourist holiday homes and self-catering properties.
The policy uses 2024 data as a baseline. CSO data for tourism spend for 2025 to date is 13 per cent down on last year. In other words, the policy growth targets will already be behind the curve. Saying that, there has been significant misalignment between CSO data and industry statistics for some time, so bringing in additional data sources is much needed going forward,
There are odd maths in the policy, and areas where the department would have been aided by industry consultation. The 50 per cent revenue growth target out to 2031 is based on 15 per cent visitor number growth, or only 3 per cent annually. But where these international visitors will come from is not quite clear. There is already an increasing overdependence on US visitors and, as welcome as the greenback is, Irish tourism needs to diversify. Stronger European and Asian markets are important for Irish tourism in case of US economic volatility.
Disappointingly the policy is utterly silent about the amount of investment the State will commit to tourism to help business achieve the national growth targets.
Brainier people than this author have put together the policy and no doubt its economic robustness is baked in. Much of it is welcomed by industry leaders but there are noticeable gaps and weaknesses. How the policy is implemented is the key matter and hopefully the policy oversight group that is referenced will have strong industry representation. Who knows better about a sector, its opportunities and challenges, than industry practitioners?
Although light on detail, the Government’s new tourism policy certainly delivers a sense of purpose. No matter the macroeconomic and geopolitical uncertainty, Irish tourism can’t be outsourced and offshored. It is here to stay and needs to be supported.
Eoghan O’Mara Walsh is chief executive of the Irish Tourism Industry Confederation
