TOURISM RESEARCH

ICCTA Report - Pivoting to Asian Markets

Ireland Tourism Strategy: Pivoting to Asian Markets

IRELAND TOURISM STRATEGY

Pivoting to Asian Markets

A data-driven approach to diversifying Ireland's tourism markets in response to current challenges

Irish Landscape

April 2025

Current Tourism Crisis: 30% Decline in Visitor Numbers

-30%
Foreign Visitors (Feb 2025 vs Feb 2024)
-31%
Tourism Revenue (€88 million loss)
-33%
Total Nights Spent by Visitors

Visitor Numbers Trend

CSO data shows a consistent decline since September 2024, with February 2025 seeing the steepest drop yet.

"Last week data from the CSO showed a decline of 30 per cent in the number of visitors to the country in February, with revenue taking a hit of €88 million during the month." - Inside Business Podcast

Month 2024 (000s) 2025 (000s) Change (%)
January 451.9 338.9 -25%
February 433.3 304.3 -30%

Key Findings from CSO Data

  • Only 304,300 foreign visitors in February 2025, down from 433,300
  • Visitors spent €196 million on trips, down from €284 million
  • Great Britain remains the largest market (49% of visitors)
  • The US accounts for only 10% of visitors but is showing significant decline
  • Total nights stayed dropped to 1.8 million from 2.7 million
  • Average length of stay decreased from 6.2 to 5.9 nights
  • Tourism industry globally ranks Ireland 48th, down from 38th in 2019
Tourism Statistics Chart

Factors Behind Ireland's Tourism Slowdown

Primary Factors

1. Statistical Methodology Changes

The CSO introduced a new "Inbound Tourism Series" during COVID-19, which uses different methodology, making it difficult to compare current numbers with pre-pandemic data.

"Anyone who is trying to understand how Irish tourism has been impacted and recovered from Covid can find little insight from the tourism data provided by the CSO." - Professor Jim Deegan, University of Limerick

2. Declining North American Market

Significant drop in US visitors, which traditionally provide high-value tourism revenue. February 2025 saw only 31,200 US visitors, down from 46,600 in February 2024.

3. Global Economic Uncertainty

Geopolitical tensions and economic pressures are causing travelers to reconsider long-haul destinations, with closer, more affordable options gaining preference.

Secondary Factors

4. Rising Operational Costs

Tourism operators like Sean Connick (Dunbrody Famine Ship Experience) report significant increases in operating costs alongside declining visitor numbers.

"Sean Connick has had to absorb significant increases in their running costs." - Inside Business Podcast

5. Pricing Competitiveness Issues

Ireland is increasingly perceived as an expensive destination compared to other European countries, particularly for accommodation and food.

6. Limited Market Diversification

Over-reliance on traditional markets (UK, US, and Western Europe) has left Ireland vulnerable to shifts in these markets. Asian visitors account for less than 5% of total tourism.

Industry Perspective Divide

Irish Tourist Industry Confederation

Eoghan O'Mara Walsh (CEO) believes CSO figures may be overstating the decline. Industry data for hotels and attractions shows a more positive picture than official statistics suggest.

Attraction Operators

Operators like Sean Connick are experiencing real declines with "soft" numbers in January and February 2025, and increasing operational costs affecting profitability.

Impact of US Tariffs on Irish Economy

New US Tariff Structure

April 2025 US Tariff Implementation

  • 10% baseline tariff on all imports to the US
  • 20% reciprocal tariff on EU countries, including Ireland
  • Potential future tariffs targeting pharmaceuticals specifically mentioned by the administration

Projected Impact on Ireland

  • Business leaders predict a 2-3% reduction in Irish exports to the US over time
  • 25% of Irish exports to the US immediately affected by tariffs
  • Impact of up to €6 billion expected in the next year
  • Potential loss of foreign direct investment as US companies reconsider Irish operations
"Last year, Ireland exported €72bn worth of goods to the US. So a 20% tariff is huge. It could have been worse."
- Simon Coveney, The Guardian, April 2025

Pharmaceutical Sector Vulnerability

While pharmaceuticals have temporarily avoided the 20% tariff, they remain a stated target for future action.

Pharmaceutical Export Statistics:

  • Pharmaceuticals accounted for €58 billion of the €73 billion worth of products Ireland exported to the US
  • This sector represents 80% of Irish goods exports to the US
  • US Commerce Secretary has characterized Irish policy as a "scam" that will be ended through tax changes and tariffs

Combined Economic Pressure

The double impact of tourism decline and trade tariffs creates significant economic pressure on Ireland, especially in:

  • Rural communities dependent on tourism
  • Small towns with pharmaceutical manufacturing presence
  • Overall Irish GDP growth projections
Economic Impact Chart

Combined Economic Vulnerability

20%
US Tariff Rate for EU Countries
€6B
Estimated Annual Impact
80%
Pharma Share of US Exports

Ireland's Reliance on US Trade and Tourism

US-Ireland Trade Relationship

Export Dependency

  • In January 2025, exports to the US reached €11.7 billion, accounting for 48.4% of all Irish exports
  • US is Ireland's largest export market (28% of total in 2023)
  • Ireland's exports to the US surged by 34% to €72.6 billion in 2024
  • Ireland had a goods trade surplus of €50 billion with the US in 2024

Sector Concentration

Pharmaceuticals dominate Irish exports to the US:

80%
"Ireland and Europe has a larger trade deficit with the US and that's the crudeness through which this has been calculated."
- BBC News NI, April 2025

US Tourism Importance

US Visitor Statistics

  • North American visitors make up only 10.2% of total visitors by volume
  • However, they account for approximately 20% of tourism revenue due to higher spending patterns
  • US visitors stayed a total of 276,200 nights in February 2025, representing 15.4% of total visitor nights
  • US visitor numbers dropped from 46,600 in February 2024 to 31,200 in February 2025 (-33%)

Vulnerability to US Market Shifts

Ireland's tourism industry is particularly exposed to shifts in the North American market:

  • US visitors have the highest per-visitor spending
  • They typically stay longer than European visitors
  • They are more likely to travel throughout the country, supporting rural tourism
  • Many cultural and heritage attractions depend heavily on US visitors

"We are very exposed to the North American market." - Tourism Industry Executive, Irish Times, April 2025

The Risk of Overconcentration

Economic Risk

Ireland's economy is disproportionately exposed to US policy changes, with both trade and tourism vulnerable to the same economic and political factors.

Seasonal Dependency

US tourism is highly seasonal, creating boom-bust cycles in tourism areas, with limited visitors during off-peak periods.

Geographic Impact

Rural communities and small towns that rely on either tourism or pharmaceutical manufacturing are doubly exposed to US market changes.

The Untapped Potential of Asian Markets

Current Asian Market Share

Asian visitors currently represent a tiny fraction of Ireland's tourism market:

< 5%

Asian visitors to Ireland (percentage of total visitors)

Asian Outbound Tourism Growth

  • China and India are projected to be the world's largest outbound tourism markets by 2030
  • Asia Pacific's outbound tourism spending grew by 29% in 2024
  • Chinese international tourism spending is expected to reach pre-pandemic levels by 2026
  • India's outbound market is growing at over 10% annually
"Japan emerged as the #1 trending destination worldwide (growing 0.9% vs Ireland at 0.4%), as it welcomed 3,081,600 visitors from abroad in March 2024."
- Mastercard Economics Institute, 2024

Why Asian Markets Now?

Economic Resilience

Asian economies are showing strong post-pandemic growth, with domestic consumption and outbound travel rebounding faster than Western markets.

Growing Middle Class

Asia's middle class is projected to reach 3.5 billion by 2030, creating an enormous new travel market with disposable income for international tourism.

Changing Travel Patterns

Asian tourists are increasingly seeking authentic cultural experiences and are venturing beyond traditional European destinations like Paris and Rome.

Counter-Seasonal Travel

Asian tourism patterns can help fill Ireland's off-season periods, as many Asian tourists prefer to travel during different times than traditional Western markets.

Asian Tourism Growth Chart

Market Opportunity Size

200M+
Chinese Outbound Travelers by 2030
50M+
Indian Outbound Travelers by 2030
$450B
Asian Tourism Spending Annually

Growth Projections for Chinese and Indian Tourists

Chinese Tourism to Ireland

Current & Projected Numbers

  • 100,000 Chinese tourists visited Ireland in 2019 (pre-pandemic)
  • Tourism Ireland projections show potential for 200,000 Chinese visitors by 2025
  • This represents a potential 100% growth from pre-pandemic levels
  • The Guinness Storehouse went from almost no Chinese visitors to 47,000 in less than a decade

Recent Policy Developments

  • Ireland has begun issuing five-year, multiple-entry tourist visas to qualifying Chinese nationals
  • Tourism Ireland has doubled its marketing efforts in China
  • Direct flight options between China and Ireland are under consideration
"According to Tourism Ireland, the number of Chinese tourists visiting Ireland could reach 200,000 in 2025, more than double that in 2017."
- Chinese Tourist Agency, 2025

Indian Tourism Potential

Growth Indicators

  • Indian outbound travel is growing at over 10% annually
  • Estimated 30 million Indian outbound tourists by 2025
  • Indian tourists to Europe increasing by 16% year-on-year
  • Ireland sees opportunity to capture at least 1% of this market, translating to 300,000 potential Indian visitors

Market Advantages

  • English-speaking destination (significant advantage for Indian travelers)
  • Growing Indian diaspora community in Ireland
  • Increasing business connections through tech industry
  • Existing cultural appreciation for Irish literature and culture
Asian Tourist Growth Projections

Combined Asian Market Opportunity for Ireland

Source Market Current Visitors (est.) 2030 Potential Growth Opportunity Spending Potential
China 100,000 250,000 +150% €375 million
India 30,000 300,000 +900% €450 million
Japan 25,000 100,000 +300% €150 million
South Korea 15,000 75,000 +400% €112 million
Other Asia 30,000 125,000 +317% €188 million
Total 200,000 850,000 +325% €1.275 billion

Benefits of Targeting Asian Tourists

Higher Spending Patterns

  • Chinese tourists spend 3-4x more than average European visitors
  • Strong interest in luxury shopping and premium experiences
  • Average spend of €1,500-€2,000 per visit vs €700 for European visitors
  • More likely to purchase high-end souvenirs and Irish products

Chinese travelers are strongly interested in premium experiences and quality products that they can showcase back home.

Counter-Seasonal Travel

  • Asian tourists often travel during different holiday periods
  • Chinese New Year (January/February) coincides with Ireland's low season
  • Indian travelers prefer September-November, helping extend the season
  • Japanese "Golden Week" in late April/early May bridges shoulder season

Asian tourism patterns can help fill Ireland's tourism calendar during traditionally quieter months, reducing seasonality issues.

Digital Amplification

  • Asian tourists are highly active on social media
  • Create significant user-generated content
  • Platforms like WeChat, Weibo, and Instagram drive awareness
  • Word-of-mouth marketing through digital channels

Asian visitors often share their travel experiences extensively online, creating organic marketing and inspiring others to visit.

Preferences & Travel Behavior

Group Travel Dynamics

Chinese tourists often travel in groups for safety and convenience, but younger travelers increasingly opt for independent travel. Indian families frequently travel together, often in multi-generational groups.

Cultural Experience Seekers

Modern Asian tourists are increasingly interested in authentic cultural experiences rather than simply checking off landmarks. This aligns perfectly with Ireland's rich cultural heritage offerings.

Digital Connectivity

Asian travelers expect excellent Wi-Fi and digital services. They rely heavily on mobile payments, online bookings, and digital guides in their native languages.

Emerging Interest in Nature

With increasing urbanization in Asia, tourists are showing greater interest in natural landscapes and outdoor experiences, making Ireland's scenic countryside particularly appealing.

Economic Impact Distribution

Broader Geographic Spread

Asian tourists, especially when part of organized tours, visit a wider range of locations across Ireland:

  • More likely to include multiple regions in their itinerary
  • Interest in both urban centers and rural attractions
  • Tendency to follow complete touring routes (Wild Atlantic Way, etc.)
  • Higher likelihood of visiting "undiscovered" areas with proper promotion

Sector Benefits

Retail & Luxury Goods

Asian tourists spend significantly on shopping, particularly for luxury items, unique souvenirs, and local products.

Food & Beverage

Strong interest in local cuisine and food experiences, with higher than average spending in restaurants.

Premium Accommodations

Preference for 4-5 star hotels and unique accommodation experiences, driving higher RevPAR.

Cultural Attractions

High visitation rates to museums, cultural sites, and historical attractions, supporting preservation efforts.

Strategic Recommendations for Attracting Asian Tourists

Market Entry & Expansion

1

Double Marketing Investment in Asia

Follow Tourism Ireland's initiative to double marketing efforts in China and expand similar approaches to India, Japan, and South Korea.

2

Develop Direct Air Connectivity

Negotiate with key Asian carriers for direct flights to Dublin, or convenient one-stop routes with partner airlines.

3

Expand Visa Facilitation

Build upon the success of the five-year multiple-entry visa for Chinese nationals by extending similar programs to Indian and other Asian travelers.

Digital & Content Strategy

4

Local Platform Integration

Develop presence on WeChat, Weibo, LINE, and other Asian social platforms with culturally relevant content.

5

Virtual Experience Showcases

Create virtual tours and 360° experiences of key Irish attractions, optimized for Asian mobile platforms.

6

Influencer Partnerships

Collaborate with popular Asian travel influencers to showcase authentic Irish experiences to their millions of followers.

Visitor Experience Enhancement

7

Cultural Adaptation

Develop multilingual materials, signage, and guides in Mandarin, Hindi, Japanese, and Korean at major attractions.

8

Digital Payment Integration

Facilitate acceptance of WeChat Pay, Alipay, UPI, and other Asian payment platforms at key tourism businesses.

9

Cultural Training Program

Develop training for tourism providers on Asian cultural norms, expectations, and service preferences.

Product Development

10

Luxury Experience Packages

Create high-end tourism products targeting affluent Asian travelers, including exclusive access experiences.

11

Themed Routes & Itineraries

Develop specialized routes that align with Asian interests, such as pilgrimage itineraries, photography spots, movie locations, or literary connections.

12

Create Asian-Friendly Retail Experiences

Develop tax-free shopping programs and luxury retail experiences specifically targeting Asian visitors.

Implementation Timeline

Short-Term (6-12 months)

  • Launch digital marketing on Asian platforms
  • Develop multilingual materials for top attractions
  • Pilot Asian payment systems in Dublin
  • Begin tourism stakeholder cultural training

Medium-Term (1-2 years)

  • Expand visa facilitation programs
  • Develop Asian-specific luxury packages
  • Establish regular influencer partnerships
  • Roll out payment systems nationwide
  • Begin air route development negotiations

Long-Term (3-5 years)

  • Secure direct flight connections
  • Open Tourism Ireland offices in additional Asian cities
  • Develop comprehensive Asian visitor strategy 2030
  • Create Asian tourism growth investment fund

Conclusion: Strategic Pivoting to Asian Markets

Key Takeaways

  • Ireland's tourism is experiencing a significant 30% decline, while also facing economic pressure from new US tariffs
  • Over-reliance on traditional markets (US, UK) creates vulnerability to economic and political changes
  • Asian markets represent a massive untapped opportunity with 200-850K visitor potential by 2030
  • Asian tourists offer counter-seasonal travel patterns, higher spending, and broader geographic distribution of tourism benefits
  • Developing this market requires a coordinated approach across marketing, infrastructure, and visitor experience

Return on Investment

Revenue Potential

With proper development, Asian tourism could generate €1.2+ billion annually by 2030, helping offset potential losses from US market changes.

Job Creation

Asian tourism growth could create 10,000+ new jobs across Ireland, particularly benefiting rural areas and small towns.

Risk Mitigation

Diversifying tourism sources provides resilience against geopolitical and economic challenges in any single market.

Seasonality Improvement

Different holiday patterns help distribute tourism throughout the year, improving business sustainability.

Action Plan Recommendations

Governance

  • Establish Asian Tourism Task Force
  • Create cross-agency working group
  • Develop 5-year strategic plan

Funding

  • Reallocate €10M marketing budget to Asian markets
  • Develop public-private partnership fund
  • Create tourism innovation grants

Stakeholders

  • Industry education program
  • Tourism provider readiness assessment
  • Asian market entry mentorship

Measurement

  • Develop Asian visitor metrics dashboard
  • Quarterly progress reporting
  • Annual strategy refinement

The Future of Irish Tourism

By pivoting strategically to Asian markets, Ireland can transform its current tourism challenges into a more diverse, resilient, and profitable tourism sector for decades to come.