Deirdre O Meara 
The Chief Executive of Fáilte Ireland, Paul Kelly, has issued a warning to the tourism sector to be mindful of the importance of value for money ratings this year, as many individuals are concerned about inflation and the general cost of living.
Speaking at a virtual event for the sector, Kelly emphasised the need to prioritise this issue, particularly given the Government’s expected decision this week to remove the special VAT rate of 9% for the hospitality industry, with the rate due to expire at the end of the month and the VAT rate set to rise to 13.5%.
Kelly emphasised the need for “transformational change” and sustainable recovery in the tourism sector in 2023. He noted that inbound tourism had begun to recover in 2022 and was close to pre-pandemic levels by the end of the year. However, he cautioned that value for money would remain a key concern in 2023, particularly amongst domestic, UK, and European visitors.
While the exchange rate between the dollar and euro has provided some benefit for US visitors, Kelly emphasised that industry leaders must remain mindful of value for money ratings amongst other visitors. He said that good value for money is critical to converting domestic intention into domestic bookings, as visitor satisfaction ratings remain high.
Despite many tourism businesses anticipating a better year in 2023 compared to 2022, Fáilte Ireland acknowledges that the sector still faces numerous challenges. Kelly noted that many businesses are struggling to maintain margins due to the rising costs of energy, labour, insurance, and other operating expenses.
The tourism body plans to focus on seven key areas in 2023: business recovery, tourism careers, domestic marketing, opening the outdoors, industry digitalisation, destination development, and climate action.
Kelly said that the organisation’s 2023 plans aim to drive sustainable recovery for individual businesses, support the creation of long-term careers in tourism, accelerate domestic tourism growth, enhance the outdoor tourism experience, build digitalisation within the industry, and drive climate action.
Fáilte Ireland is engaging with all stakeholders to ensure a full understanding of the pressures facing tourism businesses and push for any necessary action to support these businesses.
