The number of overseas visitors to Ireland fell by 3% last year - the first decrease in seven years - with tourism revenues falling by 2% to €6.3 billion.
Fáilte Ireland, in its end of year review, indicates that employment in the industry may have declined by up to 10% over the past year. Today's report criticised local authority charges placed on tourism businesses which, it said, varied enormously and were well in excess of inflation.
Fáilte Ireland's Chief Executive Shaun Quinn said the foreign earnings which tourism generated would be more important to the economy than ever before this year.
He said those working in the industry had proven themselves to be resilient and tenacious and that these characteristics would see operators overcome the challenges of recession.
The Fáilte Ireland figures reveal that North American arrivals declined by 9% while US tourists spent 18% less during 2008. Visitors from Britain were down 5% with expenditure faring somewhat better with a drop of only 2%. Mainland Europe provided the strongest performance with revenue up almost 8% despite a modest drop in visitor numbers.
The figures also show that the numbers travelling for business reasons or visiting family or friends in Ireland showed growth in 2008 but holiday visitors were down 8%. There was also surprisingly strong business travel from Britain and North America during 2008, but not strong enough to offset the decline in leisure visits.
Analysis of the home market indicate at best no growth in revenue or volume for the first time in many years, the review says. The home holiday market has grown by about 70% since the beginning of the decade, with one in every two Irish adults now taking a break at home.
Fáilte Ireland says that overseas visitors in 2009 are set to decline further with mainland Europe appearing to offer the best prospect for maintaining 2008 levels. Business from North America appears most vulnerable, followed by Britain.
Business sentiment within the tourism industry is also reflecting expectations of a further decline in performance in 2009. Factors contributing to a more cautious view of the 2009 season include low consumer confidence and weak demand in most key markets, unfavourable exchange rates, rising costs, reduced credit and local competition.
A major part of Fáilte Ireland's focus in 2009 will be on continuing to expand the home market with an aggressive marketing campaign to persuade more Irish people to take a break at home this year.
Over €3m will be invested with additional industry support for a year-round marketing programme to promote awareness of taking a break during 2009. Key messages in the 2009 campaign will be the convenience and value of holidaying at home.
'Irish consumers will be looking for value and quality more than ever before and this will be the core of our home holiday campaign for 2009, which incidentally will be our biggest ever marketing drive,' commented Mr Quinn.
'We fully intend to take advantage of the definite opportunity which exists to present Ireland to its own people as a convenient, good value alternative to an international holiday in 2009.'
Another €4m will be invested in supporting local and national festivals as a proven critical attraction within the home holidays offering. €6m will be invested with Tourism Ireland to promote the West, East Coast and Lakelands regions in key overseas markets.
