More than half of Irish tourism businesses have seen their revenues drop so far this year with 60% of businesses blaming US President Donald Trump’s ‘radical’ economic policies for the downturn.
Fálte Ireland’s tourism barometer report shows revenue are down in every sector and region compared to last year with B&Bs, self-catering operators, food & drink establishments and tour guides being worst affected.
The survey of more than 800 tourism businesses found a lack of disposable income, combined with a lack of affordable tourist accommodation, got the year off to a slow start, but this has recently been compounded by global economic uncertainty brought about by President Trump’s policies.
“Businesses across numerous sectors are seeing some cancellations of US trips and a lack of forward bookings from this market as US travellers are concerned about their income and also how they are perceived abroad,” the report states.
Separate data from the Central Statistics Office (CSO) shows that trips by tourists to Ireland from abroad this year have dropped significantly, down 18% on the same period in 2024. Domestic tourism is also down 8%.
Fáilte Ireland said the challenging market conditions are seen across the whole country and are not regionally specific. “As overseas visitor levels are down, even Dublin, which often performs better than the other regions, is affected,” the report states.
It suggests an over-reliance on the North American market, with 59% of those surveyed saying revenues from this sector are down on last year. “The North American market has so often delivered for the industry, underpinning positive overseas market performance at times when European markets were flat. Now that North American levels have seemingly slipped back, Irish tourism businesses are feeling the effects.”
Some tourism businesses have reported cancelled trips from the US market as travellers are concerned about their income and job security. It follows heightened uncertainty in the US and globally over the tariff war instigated by the US President.
In comments for the survey, businesses said operating costs, lack of disposable income and a lack of affordable accommodation were dominating concerns before President Trump was inaugurated. The proportion of businesses expressing concerns regarding the Trump presidency has escalated from 18% in January, before his inauguration to 60% today. Some say that pre-planned trips from US visitors have largely gone ahead in 2025, but they fear that 2026 is when Ireland will feel the effects of US policies most fully.
Fálte Ireland said the hotel sector has performed well, with half of businesses saying average room yields are up on last year. However, the domestic market for hotels is lacking long leisure stays, and the corporate stays are also down.
For restaurants, 69% have seen a decline in revenues this year, while 52% of pubs have seen revenues fall.
Fállte Ireland noted that despite the overall concerns, 56% of tourism businesses say 2025 will be ahead of, or on par with, 2024. Others are hoping for a summer of fine weather, unlike last year, with many operators pining their hopes on the domestic market.
