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06 Sept 2025

Tourism concerns over inflation and hotel bed shortages due to refugee numbers

Tourism concerns over inflation and hotel bed shortages due to refugee numbers

Accommodation shortages and inflation are issues causing significant concern for the Irish tourism next year, the Irish Tourism Industry Confederation (ITIC) has said. 

If the numbers of refugees and and asylum seekers being housed in hotel accommodation does not fall, then it will have a big impact on the Irish tourism sector next year, ITIC said last week. 

Fáilte Ireland, the national tourism development agency, also expressed similar concerns. 

"This is a really significant concern for everyone," Fáilte Ireland CEO Paul Kelly told RTÉ News, in relation to hotel beds not being available. 

He said the tourism sector is a complex eco system, of lots of different types of businesses that all rely on each other. 

"If the accommodation, where visitors stay, isn't available, then businesses like restaurants, bars, cafes, activity providers, shops, art galleries, visitor attractions, all will struggle if there isn't a place for visitors to stay," Mr Kelly said. 

The ITIC October tourism dashboard noted the challenges facing the Irish tourism industry. 

It said there is: "Significant industry concern for next year with twin obstacles to recovery: soaring cost inflation and over-dependence on tourism accommodation by Government for refugees". 

October data shows that international visitor arrivals were down 7% compared to October 2019 and down 19% year-to-date.

However, the Key North American market is performing well, with 196,000 visitors to Ireland last month while the Continental European market was the strongest performer. 

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