Irish hospitality sector shows resilience despite global economic uncertainties, says Bank of Ireland’s head of Hospitality Sector Gerardo Larios Rizo.
“The basic supply and demand landscape remains stable in Ireland at present, and key indicators such as employment and household wealth remain in a positive trend”
Ireland’s tourism and hospitality industry continues to demonstrate remarkable resilience amid global economic challenges, according to recent market analysis.
Despite ongoing conflicts in Ukraine and the Middle East, Irish hospitality businesses have maintained favourable performance metrics through the first quarter of 2025.
Hotel accommodation key performance indicators through March show positive occupancy and rate trends across most locations in Ireland, with the exceptions of Cork and Belfast, where occupancy has declined approximately 3% year-over-year. This strong performance comes despite Central Statistics Office data showing a 23% decline in inbound visitor trips and a 26% drop in visitor expenditure for Q1 2025 compared to the previous year.
The stable domestic unemployment rate of 4% suggests continued strong discretionary spending among Irish residents, helping to offset international tourism declines.
Trade tensions create concerns
However, escalating international trade tensions are creating new concerns for the sector. The ongoing review of US tariffs has introduced market uncertainty that could impact global hospitality trends. In the United States, preliminary figures for March 2025 already show an 11.6% drop in overseas visitor arrivals.
“The hospitality sector has time and time again proven its resilience, bouncing back from challenges like Foot & Mouth in 2001, the global financial crisis in 2008, and COVID-19 in 2020,” said Bank of Ireland’s head of Hospitality Sector Gerardo Larios Rizo.
“The basic supply and demand landscape remains stable in Ireland at present, and key indicators such as employment and household wealth remain in a positive trend.”
Rizo recommends that hospitality businesses remain vigilant to market changes by regularly reviewing market segmentation trends, assessing forward bookings compared to previous years, and reevaluating marketing strategies and budgets to maintain their competitive edge in an increasingly uncertain global environment.
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