Irish Tourism Quarterly Economic Update March 2026
2025 was a stable year for Irish tourism despite significant pressures
Overview
The Irish Tourism Quarterly Economic Update for March brings together a range of tourism-related economic indicators in one publication. By combining data that would otherwise sit across separate releases, it provides a single, high-level view of Ireland’s tourism performance.
2025 was a stable year for Irish tourism. The sector continued to face significant pressures, including higher business costs, greater consumer price sensitivity and geopolitical uncertainty. Even so, employment remained at a record level, overseas trips strengthened in the second half of the year, and spending by domestic tourists remained resilient.
Key takeaways
1. Overseas Tourism in 2025
2025’s tourism performance was down on 2024, with trips declining by -3% and spending in Ireland falling by -9%. The opening months of last year were weak given the backdrop of heightened global economic uncertainty due to tariff changes, the impact of Storm Éowyn and the Dublin Airport cap. As the year progressed the performance gradually improved and turned more positive in the latter months. While not enough to turn the year around, it builds positive momentum, with trips up 15% in Q4 2024 as the US market in particular rallied.
2. Domestic Tourism in 2025
Q1 to Q3 results for 2025 show that there was a decline of 6% in tourism trips taken by Irish residents within the state. More positively, spending by these tourists was unchanged from the year before and the fall in trips taken was largely driven by people visiting friends and relatives - in other words, those less likely to use paid accommodation.
It should be noted that 2024 was a record year for domestic tourism, so spending is holding up at a high level. For example, spending on trips by Irish residents is up +65% since 2019.
3. Employment in Tourism
In 2025 ‘Tourism Industries’ employee headcount stood at 229,400. This is up +0.3% (or 600) on 2024 and represents close to 1-in-10 (9%) employees in the country. While ‘Tourism Industries’ contributes meaningfully to overall employment levels, of equal importance is the regional spread of these jobs - almost 70% of jobs across ‘Tourism Industries’ are located outside of Dublin.
4. Air access
Given that almost 90% of Ireland’s overseas tourists fly to and from the country, air access capacity is a good indicator of future demand. Seat capacity to the Republic of Ireland for Q1 2026 is expected to be 15% ahead of the same period last year. With no passenger cap in place, Dublin is set to experience growth of 16%, subject to geopolitical conditions.
5. Industry sentiment from Fáilte Ireland’s Tourism Barometer
Despite the weakening of inbound and domestic trips reported by the CSO, overall, businesses reported better or equivalent performance in 2025 compared to 2024: 48% of businesses reported growing their revenue in 2025 and 24% held the same level; 28% saw a decrease. The strongest performing sectors were hotels (67% increased their revenue) and inbound tour operators and destination management companies (63%).
Looking ahead, 40% of businesses expect their revenue to be up in 2026, and 40% expect revenue to remain the same; 20% expect revenues to decline. However, there is industry wide concern about the global economic and geopolitical climate, particularly in terms of how dependent Ireland is on the US market.
What this means for tourism businesses
This report covers 2025 performance and conditions at Q1 2026 and can help you compare your own 2025 performance against businesses in the same sector. The supports and actions below reflect what was available at the time of publication. Check current programme availability before acting.
The VAT reduction to 9% that will take effect in July 2026 will be the most direct relief available. For longer-term support, the F&B 360° programme can help you work through costs, pricing strategy, and where to find margin.
Annual occupancy for 2025 averaged at 78%, but a RevPAR gap of over €100 per room between high and low season has a direct impact on cash flow and year-round employment. The Climate Action programme helps reduce operating costs, which is how you protect your profit when rooms are harder to fill.
Both sectors had a broadly positive 2025 and were among the most optimistic looking into 2026. Seat capacity in Q1 2026 is expected to be 15% above the same time last year. Make sure your experience is listed and bookable on Fáilte Ireland's consumer platforms before the peak booking season.
Related supports and next steps
Check current Fáilte Ireland supports before you act. Use available supports to review costs, digital activity, visitor markets, and seasonal plans.
Download Irish Tourism Quarterly Economic Update, March 2026
Read the full Irish Tourism Quarterly Economic Update, March 2026 for the full data tables, methods, and sector detail.