The Bank of Ireland forecasts a significant increase in domestic holidays this summer, after Irish customers' spending on air travel fell by 6.4% between January and April. The data show a reduction in spending in the United States and Gulf countries, while spending in traditional European destinations remains relatively stable, including in Spain (+1.4%), France (-0.9%), Portugal (-1.8%) and Turkey (+0.5%).
According to the bank, the drop in spending in long-haul markets reflects geopolitical and security concerns, as well as greater consumer prudence. If this trend continues, domestic tourism should benefit, in a context in which the reduction in the VAT rate planned for July is seen as positive for the sector and for travelers.
The Irish hotel industry is performing strongly, with stable occupancy levels and high average rates. Dublin has load factors of over 80%, while Fáilte Ireland expects growth in the number of visitors from North America, supported by a 7% increase in air capacity from the United States, a market that accounts for 40% of Ireland's international tourism revenues.
