Irish Tourism Sector Experiences Decline in 2025 Amidst European and British Downturn, North American Growth Provides Mitigation

Challenging Year for Irish Tourism in 2025

Ireland's tourism sector faced a challenging year in 2025, experiencing a notable decline in overall visitor numbers and expenditure. According to projections from the Irish Tourism Industry Confederation (ITIC) and data from the Central Statistics Office (CSO), overseas visitor numbers reached approximately 6.16 million, marking a 6% decrease compared to 2024 levels. This reduction in visitors led to a 13% drop in overseas expenditure, totaling €5.27 billion for the year.

Despite the downturn in international arrivals, the sector's total economic value, encompassing both overseas and domestic tourism, was estimated at €8.89 billion.

Varied Performance Across Key Markets

The decline in overseas tourism was largely driven by reduced visitor numbers from key European markets and Britain. Visitors from Britain saw a 4% decrease, while Continental European markets were generally weaker, with French tourists declining by 13% and German visitors by 8%.

In contrast, the North American market demonstrated significant resilience and growth, playing a crucial role in mitigating a more severe economic downturn. Visitor numbers from the United States increased by 4%, and those from Canada rose by 8%. The North American market emerged as the most valuable to the Irish tourism economy, contributing approximately €1.933 billion.

Factors Contributing to the Downturn and Domestic Trends

Industry reports indicate that rising costs in Ireland were a significant concern for tourism businesses and a potential deterrent for visitors. Eurostat data in 2025 confirmed Ireland as the second most expensive country in the EU, with higher input costs across labor, food, energy, and insurance impacting consumer prices and profit margins.

The domestic tourism market also experienced a slight contraction, with an estimated 15.44 million domestic trips taken by Irish residents, a 7% reduction. However, domestic expenditure saw a modest increase of 1%, reaching €3.62 billion.

Outlook for 2026 and Strategic Focus

Looking ahead, the Irish tourism industry maintains cautious optimism for 2026. The ITIC projects a potential growth of 5% to 7% in tourism revenue for the coming year, contingent on a stable global economy and increased air access.

Tourism Ireland has emphasized a strategy of market diversification, particularly to reduce an 'over-dependence on US visitors' and strengthen European and Asian markets. Efforts in 2025 included prioritizing the United States with ambitious marketing programs and initiatives like 'Slow Tourism Month' to encourage exploration and longer stays.