Brexit a ‘huge blow’ to Irish tourism

Tourism will be one of the first sectors to feel the impact of Brexit as the resulting plunge in the value of sterling makes Irish holidays more expensive for British visitors.

In addition, economic uncertainty may make people more cautious about discretionary spending and this may impact on visitor numbers, according to Tourism Ireland.

Assuming sterling remains weak, it will become cheaper for Irish people to visit Britain and holidays in Northern Ireland will offer better value for tourists from the rest of the EU.

Tourism Ireland stressed the importance of ensuring the common travel area between Ireland and the UK was kept in place, as well as visa schemes designed to attract visitors from countries such as China and India.

Representative groups in the sector have called for measures to be put in place to mitigate the effects of economic instability and weaker sterling expected to come in the wake of Brexit.

Almost 4.5 million British tourists visited Ireland last year and spent almost € 1 billion here. The UK market accounted for four out of every 10 visitors, and this proportion has risen by one-quarter since 2012.

The Irish Tourist Industry Confederation called on the Government to play a leading role in the UK exit negotiations taking place over the next two years. The implications of this week's vote will very much depend on the terms of engagement negotiated post-exit between the UK and the rest of the EU, it said.

“A prompt, mutually-beneficial arrangement between the EU and UK should be the objective of all parties to ensure that any negative economic implications are minimised,” it said.

Chief executive Eoghan O’Mara Walsh said it was important a new trading arrangement made travel to and from Britain as easy as possible. Ireland also needed to retain its competitiveness to ensure any negative consequences of Brexit are minimised.

The Restaurants Association of Ireland described the UK’s vote to leave the EU as a “huge blow” to Irish tourism.

Chief executive Adrian Cummins said restaurateurs in Border areas were deeply concerned with potential new arrangements post-Brexit. It was imperative the 9 per cent Vat rate for tourism was retained in the next Budget and a reduction in excise duty on alcohol would also help.

“The outcome of the UK vote has major implications for Irish tourism and the restaurant sector. It is imperative the Irish Government gives a clear signal on issues of major importance to the sector, our trading relationship with the UK and Northern Ireland and the EU budget.”

The Irish Hotels Federation welcomed the Government's initial response to Brexit and said it looked forward to working with it on ensuring appropriate measures are put in place to enable Irish tourism to react quickly.

The federation said it was too early to predict the full effect of the vote on tourism given the uncertainty around the future relationship between the UK and the EU.

The Irish Travel Agents Association has expressed concern that a Brexit could lead to increased regulations for Irish travel agents and higher travel costs for consumers travelling to and from the UK and Northern Ireland.