Business of Tourism Report 2026

Overview

The Business of Tourism Report 2026 brings together key tourism economic data in one place. It gives you a clear picture of how the Irish tourism industry performed in 2025, the pressures businesses faced, and where the opportunities lie in 2026.

Overall, 2025 was a stable year for Irish tourism. The sector faced significant pressures, including higher business costs, increased consumer price sensitivity and geopolitical uncertainty. These pressures shaped both demand levels and travel behaviour, with visitors taking a more selective, value-conscious approach to their trips.

Despite these challenges, employment reached a record level, overseas tourism strengthened in the second half of the year, and domestic tourism spending held firm. This reflects a shift towards fewer, but higher-value, trips.

Key takeaways

1. Overseas tourism strengthened as the year progressed

Overseas tourists spent €5.7 billion in Ireland in 2025, excluding fares. Performance was weaker in the early months of the year, reflecting global economic uncertainty, the effects of Storm Éowyn, and constraints linked to the Dublin Airport passenger cap. Conditions improved as the year progressed, with overseas tourism returning to growth in the second half and building stronger momentum into 2026.

2. Domestic tourism spending remained resilient

Domestic overnight tourism expenditure was €3.6 billion in 2025, unchanged from 2024. The number of trips taken by Irish residents fell by 8%, driven mainly by a 20% decline in trips to visit friends and relatives (VFR). Since 2019, domestic tourism has shown strong growth in value terms, with spending up 67% compared to a 32% increase in trips and a 13% increase in nights. This reflects a clear shift towards higher spend per trip compared to pre-pandemic patterns.

3. Regionality and seasonality

Tourism revenue remains concentrated in Dublin and the South-West, which together account for 60% of overseas revenue. Other regions contribute significantly, but average spend per trip is lower, highlighting the importance of increasing length of stay alongside attracting additional visitors.

Overseas tourism remains seasonal, with 42% of arrivals between June and September, a pattern broadly unchanged from pre-pandemic norms. Domestic demand is more evenly spread, with 69% of short trips taking place outside the summer peak, supporting year-round activity.

As international recovery continues into 2026, these patterns present real opportunities for tourism businesses outside traditional tourism hubs and the peak season.

4. Close to 1 in 10 employees nationally working in tourism businesses

In 2025, employment in tourism businesses was just under 230,000. This was up 0.3% (or 600) on 2024 and represented close to one in 10 employees nationally. Approximately 70% of roles across tourism businesses are located outside Dublin, spread across the regions.

5. Demand in the accommodation sector remained strong 

Demand in the accommodation sector remained strong in 2025, while the pace of new supply remained limited. As a result, utilisation stayed high at national level, with sustained pressure in Dublin and seasonal capacity constraints across many regional destinations.

Looking ahead, accommodation supply is expected to increase gradually as projects under construction are completed. However, the scale and profile of the pipeline suggest that accommodation availability will remain an important consideration for businesses planning ahead.  

What this means for tourism businesses

This report covers 2025 performance. You can use it to compare your own results against other businesses in the same sector.

Given the geopolitical and economic backdrop, Fáilte Ireland is focusing on helping you to:

• Drive down operating costs through climate action, food and beverage, and digital programmes.
• Increase visitors' value for money perception through exceptional service and authentic, unique, tailored experiences. 

Related supports and next steps 

Review the Fáilte Ireland supports available to you now. Use them to assess your costs, digital activity, visitor markets, and seasonal plans.