Visitor numbers to Ireland’s leading visitor attractions in 2023 are still lagging behind pre-pandemic times says Ireland’s Association of Visitor Experiences and Attractions (AVEA) based on its most recent industry survey.
Figures just published in the industry research survey by AVEA detail that some 18.1 million visitors enjoyed a visit to an Irish visitor experience or attraction during 2023; this compares to significantly more than in 2022 but still well below 22.9 million visitors in 2019. The 2023 figure is 6% below the 2019 total however AVEA members noted that it was a strong performance given that Ireland’s inbound tourist numbers in 2023 were still about 35% below that recorded in 20
19, showing that the domestic visitor market is hugely valuable for AVEA members.
Given this reliance on the domestic visitor market, CEO of AVEA Catherine Flanagan says, “There is no doubt that, while the pandemic is in the rear-view mirror, we are still in a period of transition. 2023 was considered the first ‘full’ year of tourism where aviation connectivity was restored to pre-pandemic levels; however, the ‘staycation’ market segment is still one that is of vital importance to Ireland’s visitor attractions.”
However, current data for the 2024 tourism season highlights concerning visitor levels in the current season; CSO data for July 2024 revealed that international bed nights fell 350,000, or 6%, when compared with the previous year, while travel data also shows a jump in travel from Ireland to European hotspots, with visitor numbers from Ireland to Spain alone up by 18% year on year.
Catherine continues, “We are all aware that there has been a huge disruption to the tourism accommodation sector in recent years, with more uncertainty on the horizon as the legislation around short-term letting is framed. Visitor attractions this year have felt the harsh impact of many factors, including the lack of accommodation availability at a range of prices, coupled with a summer of poor weather, and shorter stays by overseas visitors.”
AVEA member visitor attractions employ over 6,400 people and generated an estimated €362 million in revenues in 2023, a very high proportion of which flowed into their local economies in wages and purchasing of goods and services. Staff costs account for the largest share of operating costs at 49%, a proportion that is forecast to increase significantly as the ripple effect of successive changes to wage legislation takes hold. There was an increase of just over 5% in average ticket prices to enter attractions reaching a median of €11.32, net of VAT and on the other hand, the average retail spend per head fell by 8% to €4.70 while the majority of survey respondents also experienced an increase in insurance premiums, the average being about 12%.
Catherine says, “Benchmarked internationally, Irish visitor attractions provide excellent value for money, and it is clear from our findings that our median yield is extremely modest. Our challenge, as year-round businesses that operate in a highly seasonal sector, is to increase visitor numbers year-round, and external factors are making this extremely difficult. Costs are up significantly. The current VAT rate exacerbates this and it is certainly proving to be a barrier for our sector. We are dealing with increased costs of doing business on all fronts which must be balanced against the value proposition that attractions can offer to visitors living in a ‘cost of living’ crisis.”
In a bid to tackle issues head-on and work towards providing the best experience for visitors, the industry will come together at the seventh annual AVEA conference which will take place in Kilkenny from October 13th to 15th 2024. The owners and operators of Ireland’s leading visitor attractions will gather to discuss how the industry can drive further visitor numbers and future-proof their businesses under the theme of ‘Innovation – Agility – Inclusion’.
Ending the survey each year, respondents are asked to look ahead to next year; and at that time some 97% of respondents anticipated increased visitor numbers in 2024 with slightly more (99%) expecting increased revenue. Preliminary figures in 2024 so far show a much more muted picture. Catherine adds, “The optimism members showed early in the year did not, for the most part, translate into business reality. Some businesses have performed strongly; but for the majority of the country, a soft summer will make for an uneasy autumn-winter with cost concerns being our biggest worry. We will be lobbying Government for more support in the upcoming budget, to recognise the accelerated costs of business, for the VAT rate to be reduced to 9%, for the economic value of tourism to be recognised, and for access blockages to be addressed.’
The complete AVEA industry survey results and report are now available to browse online along with details of the upcoming AVEA conference. For further details see www.avea.ie