Slide in North American tourist numbers ‘highlights need to extend tax cuts’
A fall in the number of North American holidaymakers visiting the Republic in August highlights the need to extend tax cuts to bolster Irish tourism’s competitiveness, says a leading industry body. The call comes as more than 400 hospitality business people gather in Dublin on Thursday for the Irish Tourism Industry Confederation (ITIC) annual conference. North American holidaymaker numbers were down 3 per cent in August on the same month in 2025, according to figures released by the Central Statistics Office, the confederation noted in advance of the conference. Budget 2027: All you need to know Spending by this group, a key market for Irish hospitality, fell in line with that rate by €9 million to €262 million in August, the data show. The slide in North American visitors highlights the need to protect the Irish industry’s competitiveness by extending the special 9 per cent VAT rate applied to restaurants and cafes to the broader industry, the confederation argues. The ITIC wants Minister for Finance Simon Harris to extend the VAT tax break to attractions, adventure tourism and campsites in Budget 2027 , which the Government will publish next week. North America is one of the country’s most important tourism markets, so falls in visitor numbers and spending deserve attention, said ITIC chairwoman Anne O’Donoghue in a statement. “The overall picture is mixed, but businesses across the country are dealing with significant cost pressures,” she added. “This is an important moment to discuss the policies and investment needed to keep Irish tourism competitive.” ITIC chief executive Eoghan O’Mara Walsh cautioned that tourism was at a critical juncture. “Demand is uneven across our key markets and operators are facing squeezed margins,” he argued. “Budget 2027 is an opportunity to support the attraction and tourism businesses that are central to the visitor experience, particularly in rural Ireland.” ITIC believes that extending the VAT break would support businesses that draw tourists to towns and communities across the country. Research by economist Jim Power shows the extension would cost the Government €17 million. The Republic’s standard rate of VAT is 23 per cent. Government introduced the special rate for food in Budget 2026 in response to lobbying from the hospitality industry, which argued that it was facing rising costs across the board. ITIC will announce a partnership with OpenAI to offer training in artificial intelligence to small businesses operating in the industry. O’Donoghue noted that AI is changing how people plan and book travel, so businesses need to adapt to the new technology. Speakers at the conference include Minister for Tourism Peter Burke, US ambassador to Ireland Edward S Walsh and broadcaster Caitríona Perry.