During the first quarter of 2019, it seemed that tourism spending has fallen by 4%. What is odd about this number is the fact that the rate of travel to Ireland has risen by 5.5%. After further investigation, data showed that although the frequency of traveling to Ireland increased, the amount of time that a tourist was to stay in the country has decreased by 3.2%.
With tourism number usually around 12.5 million people over 3 months time, this 3% decrease has left only 11.64 million. 3pc can make a huge impact in total income, especially with the high number of visitors per year.
Tourism is a main form of income in Ireland, especially in the city of Dublin. With a significant decrease in the number of people spending in very tourist oriented areas, there may be a significant amount of competition.
This competition will occur all throughout the city, causing stores with similar products to decrease prices so that they can stand out from their competition. The problem with this tactic is the fact that price changing is easy for stores and if prices were to be lowered too much, stores could have a hard time raising them in the future. If prices continue to fall, many businesses will struggle to stay afloat and may be forced to withdraw from the market.
Ireland is known to have visitors from all over the world, but especially from places such as Great Britain, the United States, and northern parts of the EU. With Brexit on the horizon, the tourism market seems to be concerned about the possibility of UK citizens having to go through thick red tape to get into the republic of Ireland.
If the hassle is too great, many people will be heavily diverted from making the effort to cross the ocean and head for the emerald isle. Instead, they will go to a place that is more convenient or that is a bit different than their current whether.
Some of the biggest problems travelers from the UK will have to face is increased Brexit restrictions and change of affordability. These are clear barriers for travelers and underlying barriers for businessmen in Ireland who make their living off of tourism.
With some of the ease of traveling vanishing, tourist numbers will continue to fall. This could have a very negative impact on many people and on the economy of Ireland as a whole.