The Irish Tourism Industry Confederation said last week's Dublin city centre riots have caused short-term reputational harm abroad.
"The riots led the BBC News that night and were on the front page of the New York Times the following day. Ireland has traded for so long on its welcome and friendliness and it is vital that such social unrest never happens again and that there is an ongoing higher police presence on the streets of the capital, " ITIC CEO Eoghan O'Mara Walsh said.
He noted that one hotel on O'Connell street was damaged during the riots and had to be evacuated with a neighbouring hotel providing a safe place for guests.
The latest Tourism Dashboard from the Irish Tourism Industry Confederation shows that 577,400 international visitors were in Ireland in October.
But the ITIC said that soaring business costs, reduced tourism accommodation supply and the planning cap on passenger numbers at Dublin Airport suggest that the outlook will be challenging for Ireland’s largest indigenous industry and biggest regional employer.
Of the 577,400 international visitors who came here in October, 204,700 came from Great Britain, 140,900 from North America, 201,300 from Continental Europe and 30,200 from the Rest of the World.
The ITIC noted that North American visitors were the highest spending market and accounted for €239m during the month of September.
The tourism body said that although the CSO's new methodology of collecting data means that direct comparisons with 2019 are difficult to make there is enough evidence "to suggest that tourism's recovery to pre-pandemic levels is slower than hoped".
Elaina Fitzgerald Kane, Chair of the Irish Tourism Industry Confederation, said that October is an important month for the Irish tourism industry and it is apparent that the sector’s recovery is lumpy.
"Certain markets such as the USA are performing well but other markets are soft as is domestic tourism," she stated.
Looking forward, Ms Fitzgerald Kane expressed concern that cost of business rises would detrimentally impact the tourism industry.
"Government is introducing a number of payroll costs next year including the move to a living wage, enhanced sick pay and pension auto-enrolment. These will all have a serious impact on tourism and hospitality businesses who are extremely labour-intensive," she cautioned.
"On top of the recent VAT increase, these extra costs will erode margins and result in higher prices to the consumer which damages Ireland's competitiveness and risks depressing demand," she added.
ITIC has argued that an off-set policy measure should be in place for SME employers.
