Hoteliers say mounting business costs will represent a “major challenge” for the industry this year.<\/p>\n
Global uncertainty has also been cited as a primary concern facing the sector, as the annual conference of the Irish Hotels Federation (IHF) in Killarney in Co Kerry starts today.<\/p>\n
Nine in ten hoteliers (92%) say they are worried about the international economy and the potential impact of political uncertainty in key markets.<\/p>\n
New research, carried out by the IHF, also revealed that 76% of its members are concerned about the outlook for the Irish economy over the next twelve months, “as consumer finances remain under pressure and international developments pose potential risks”.<\/p>\n
Speaking on RT\u00c9’s Morning Ireland programme, the President of the Irish Hotels Federation Michael Magner said that Ireland “is an outlier in terms of costs, particularly in the area of energy and insurance, and generally across all services.”<\/p>\n
The findings follow what has been described by the IHF as “a robust performance” by the Irish hotels sector in 2025.<\/p>\n
The average national hotel room occupancy stood at 76% last year, up 1% on the previous year, with most regions recording an increase.<\/p>\n
However, there was a “significant regional disparity” with occupancy levels ranging from 70% in the border region to 83% in Dublin.<\/p>\n
Despite the cited challenges, the industry appears to maintain “a cautiously optimistic outlook”.<\/p>\n
Just over half (51%) of hoteliers reported a positive outlook for trading conditions over the next 12 months, with just 13% negative.<\/p>\n
The IHF President said the sector is “cautiously optimistic for the coming year, as forward bookings suggest business levels will remain stable in 2026”.<\/p>\n
Michael Magner said the optimism comes despite what he said are “significant headwinds”.<\/p>\n