The number of overseas visitors to Ireland for 2008 fell by 3% to 7.5 million, resulting in a drop of 4% in associated revenue, according to the Irish Tourist Industry Confederation
But the ITIC's end of year review says that the 7.5 million visitors generated an estimated €4.7m. When added to the €1.5 billion generated by domestic tourism, this amounted to a massive €6.2 billion industry which supports over 250,000 jobs.
The 2008 outcome has been the first downturn since 2001/2002. ITIC Chairman Dick Bourke said that given the current economic conditions in all of the tourism markets, this year's performance was very 'creditable'.
He said it underlines the resilience and potential of one of Ireland's largest and most important service sectors.
But Mr Bourke also said that he was concerned about the near term future of the industry and called on the Government to introduce a temporary reduction in VAT for one year.
He says this would improve the overall competitiveness of the economy, provide a boost to consumer spending, and would have immediate effect.
The ITIC also says that the recently agreed national pay deal is now 'unwarranted' and should be abandoned in the light of the current economic environment.
The tourism agency also predicts that the outlook for next year is 'gloomy' and said it is likely to be 2010 before there in an improvement.
The ITIC says it does not support the proposed takeover of Aer Lingus by Ryanair. Mr Bourke says that competition among airlines was the dominant factor in the tremendous success of tourism.
'Regardless of what assurances are given, having a situation whereby over 80% of the air capacity to Ireland was controlled by a single company would be extremely unhealthy and not conducive to medium or long term access affordability,' he said.
Visits to Ireland down 7% in Q3 2008
Official figures show that overseas visitors made just over 2.47 million trips to Ireland in the third quarter of this year, a drop of 7% on the same period last year.
Visits from Britain were down 9%, while trips from the US and Canada fell 8%. There was also a fall of 4% in visits from other European countries, the largest drop for seven years.
The number of trips made by Irish people abroad was up 3% to just under 2.43 million in Q3, with a 13% increase in the figure for transatlantic travel and 19% growth on cross-channel sea trips.
Spending by Irish people abroad exceeded the amount spent by visitors here by €632m.
The figures also show a big drop in business trips to Ireland, down by 13% compared with the same period last year.
