What Lies Ahead For Irish Tourism In 2024?
Hospitality Ireland
Hospitality Ireland is the industry magazine for the Irish food service and on-trade drinks sectors.
In this week's edition, Eoghan O’Mara Walsh, CEO of the Irish Tourism Industry Confederation (ITIC), reflects on the challenges that the Irish tourism industry has faced in the last 12 months, and the opportunities that lie ahead for 2024.
It is estimated that €5.3 billion will have been spent by international visitors while visiting Ireland in 2023. This is according to the Irish Tourism Industry Confederation (ITIC), in its 2023 Review.
Its 2024 Outlook shows that Irish tourism remains robust, despite domestic cost challenges and international geopolitical events.
Eoghan O’Mara Walsh, CEO of the ITIC, speaks to Robert McHugh about accommodation constraints, the Dublin Airport passenger cap, and the effect that AI will have on the Irish tourism industry in 2024.
"We are the largest indigenous industry and the biggest regional employer in the country. I think government needs to match industry’s ambitions, and I think the national policy, which is going to set the framework for tourism for future governments, needs to be bold and ambitious about the future," said Eoghan O’Mara Walsh.
Irish Hotel Transactions Decline
The Irish hotel sector saw €350 million in transactions in 2023 – 30% below the historical average, according to Savills Ireland.
The property advisors noted that Irish hotel transactions declined in 2023, largely due to fewer Dublin sales and no Dublin investment activity.
The figures show that just 1,200 hotel rooms were added in Dublin in 2023, as supply remains constrained.
Additionally, there was no single hotel sale for €50 million or more in 2023, but Savills claims that regional transactions were very strong.
“With rising energy costs putting pressure on margins, investing in sustainable practices will enable hotels to reduce their costs, improve profitability and boost their brands,” said Tom Barrett, director of hotels and leisure at Savills Ireland.
US Embassy Confirms Purchase Of Site Of Iconic Hotel
The US State Department’s Bureau of Overseas Buildings Operations (OBO) has announced that it has completed the congressional notification process to proceed with the site acquisition for a new US Embassy building in Dublin, which will replace the current chancery .
The State Department expects to close on the purchase of the 4.2-acre site, formerly the location of the Ballsbridge Hotel (Old Jury’s), in Dublin 4, within the next 60 days.
“We happily have outgrown our current historic home, and investment in a new building represents both the extraordinary US-Irish bond of today and the potential tomorrow brings,” said Claire D. Cronin, US Ambassador to Ireland.
Diplomatic activity will continue in the current embassy chancery, at 42 Elgin Road, Ballsbridge, until the new embassy is complete.
OBO and the US Embassy Dublin plan to work closely with local partners, to ensure that a suitable plan for the site is developed once the embassy is relocated.
Tourism Ireland Launches Ambitious Program For 2024
Tourism Ireland has announced plans to increase the overall economic value of overseas tourism to the island of Ireland , growing revenue by an average of 5.6% per year over the next six years, to 2030.
Additionally, the organisation aims to sustainably support the economies of communities across the island, growing revenue to regions outside of the peak season by an average of 6.5% per year to 2030.
The plan was announced this week at an event attended by Tourism Minister Catherine Martin and around 550 tourism industry leaders from around the country.
This year, Tourism Ireland will roll out ‘an extensive and targeted programme of activity’ with a marketing budget of €70 million.
“In 2024, our aim is to increase the value of overseas tourism to the island of Ireland, sustainably supporting economies, communities, and the environment,” said Alice Mansergh, chief executive designate of Tourism Ireland.
McDonald's Impacted By Conflict In Middle East
McDonald's CEO Chris Kempczinski said on Thursday several markets in the Middle East and some outside the region were experiencing a "meaningful business impact" due to the Israel-Hamas conflict as well as "associated misinformation" about the brand.
Major Western fast-food chains including McDonald's and Starbucks have seen largely spontaneous, grassroots boycott campaigns over their perceived pro-Israeli stance and alleged financial ties to Israel.
Kempczinski said the misinformation surrounding brands like McDonald's was "disheartening and ill-founded."
"In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens," Kempczinski said in a LinkedIn post.
Irish People Are Avoiding The Office To Save Money On Food
New research from Too Good To Go reveals nearly one in five (17%) Irish workers are spending more on food and drink at work than a year ago , and over a fifth (21%) of Irish people are avoiding the office to save money on food and drink.
For those in the office, one in ten (9%) admit to buying lunch every single day and a quarter (26%) note that they are too time poor to make lunch at home
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Too Good To Go belive this could be significantly increasing monthly expenditures.
Three in ten (29%) employees take their lunch into the office daily.
Only a third (32%) take in leftovers, with just over a third (35%) admitting they take in lunch to reduce food waste at home.
Bread 41 To Close Upstairs Eaterie
Bread 41 , the organic bakery in Dublin 2, has announced that its popular eatery upstairs is now closed for good.
The owners of the establishment said they were driven by "market conditions" and "increasing prices."
'The reality is, however, that it is exceedingly difficult to make a restaurant work in the current environment and we believe a tipping point has been reached, where it is no longer viable to keep increasing prices given consumer apathy towards said, and our ability to make a reasonable return,' the owners said in statement on the Bread 41 website.
However, it is not all bad news as the team at Bread 41 are planning on utilising the space for a new endeavour.
'We feel the best way we can serve our loyal and valued customers is to close the eatery and use this space to further create a range of epic savoury pastries for our customers to further enjoy,' the owners noted.
Irish Food And Drink Exports Exceed €16bn
The value of Ireland’s food, drink and horticulture exports came to almost €16.3 billion in 2023, according to Bord Bia’s Export Performance and Prospects Report 2023/24 , which was launched this week by the Minister for Agriculture, Food and the Marine, Charlie McConalogue.
Bord Bia noted that exports were impacted by inflation and a cost-of-living crisis that continued to affect consumer spending last year, in addition to significant downward pressure on trade prices.
The overall value of Irish exports declined by 4%, compared to the previous year, when exports grew by a record-breaking 22%.
The value of exports remains 24% higher than it was in 2019, and the industry’s ability to retain much of the growth from 2022 represented a solid performance in a challenging global marketplace.
“More than half – 53% – of Irish food and drink companies believe their competitiveness has been eroded over the past 12 months, with energy prices, inflation, and labour costs having the biggest impact,” said Jim O’Toole, Bord Bia chief executive.
“Looking ahead, market volatility and inflation – although slowly easing – will continue to be two key factors for this year, while input and labour costs remain a risk to competitiveness."
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