Hospitality, Tourism & Leisure Market Update
May 2025
Welcome to the latest edition of Crowe's Hospitality, Tourism & Leisure market update, where we take a look at the wider tourism sector and provide hotel commentary, sectoral updates and noteworthy news.
In this edition (pdf), we share a selection of our key industry developments and insights, including Ireland’s hotel performance, transactions, tourism trends, and the latest updates on hotel supply.
Key insights in this update
Hotel occupancy dips as ADR holds firm
Preliminary data for Q1 2025 indicates a moderation in room performance compared to the same period last year. Dublin hotels experienced a slight year-on-year decrease in occupancy, while ADR (Average Daily Rate) remained resilient, supported by strong event-based pricing in February. Regional markets have shown more stability, with some areas even recording marginal ADR growth despite modest occupancy declines, reflecting ongoing domestic strength.
Industry concern over visitor decline
The Irish Hotels Federation (IHF) has expressed concern regarding the reported decline in overseas visitor numbers, suggesting that the Q1 2025 figures may reflect short-term volatility rather than a sustained trend. They have called for further analysis and urged caution before drawing long-term conclusions.
Tourism industry opposes proposed room tax
Industry representatives continue to advocate for policy stability, highlighting the potential negative impact of new taxes and regulations on tourism sentiment. The proposed room tax in Dublin has been met with strong resistance, with stakeholders arguing it may deter international travel and harm the city’s value proposition in a highly competitive market.
Cautious optimism for the year ahead
Looking ahead, stakeholders remain cautiously optimistic. While the start to 2025 has presented headwinds, ongoing investment, infrastructure improvements, and major events scheduled for the summer season are expected to support a rebound in inbound tourism
