Inflation, shortage of rooms and possible VAT increase threaten 2023 Irish tourism

The Irish Tourism Industry Confederation (ITIC) today released its estimates of 2022 international visitor arrivals: approximately 7M, about 73% of pre-pandemic level of 2019, and more than expected. Pent-up demand and savings accumulated during COVID lockdowns are credited.

But increasing inflation, shortage of tourist accommodation related to the government's housing of Ukrainian refugees, and a possible VAT increase from 9% to 13.5% create concerns about tourism growth stalling to single-digit level in 2023.

ITIC now forecasts that full recovery of inbound tourism will likely be delayed until 2026.