Tourism growth could stall next summer, ITIC warns

“There are supply bottlenecks everywhere, including accommodation. It’s a holdover from the pandemic, with demand soaring at a time when all these supply shortages are hitting us.

“We don’t expect a full recovery until around 2026. It’s also difficult to judge this particular summer, which could be quite strong in terms of arrivals.”

Earlier this month, ITIC warned that shortages of labour, car hire and accommodation would limit tourism growth in the peak summer months.

The association’s research showed that cost inflation in the industry last month was seven times higher than in May 2019 – the last “normal” year for the sector.

“Since last month international tourism to Ireland is down 30 per cent year to date compared to 2019 levels,” said O’Mara Walsh.

He said accusations of price gouging by some hotel operators and rental car companies underscored the importance of maintaining value for money in the tourism sector.

“There’s a small minority of tourism operators who overcharge — and they’re doing social media and doing a lot of damage to the industry,” he says.

“Despite cost pressure and delivery bottlenecks, the vast majority offer good value for money.

“If this value falls significantly, the recovery of the industry will be made significantly more difficult.

“Industry and government must take a long-term perspective for a sustainable recovery.”