The Irish Tourism Industry Confederation (ITIC) has published its submission for Budget 2026, which is expected to take place on October 7.

The ITIC's submission, published on Wednesday, warns that Ireland's tourism sector "faces an unprecedented time of geopolitical and macroeconomic uncertainty."

Overall, the ITIC's Budget 2026 submission focuses on three areas - competitiveness, connectivity, and investment.

🚨#Budget2026 Supporting Ireland's largest indigenous industry and biggest regional employer in a time of geopolitical and macroeconomic uncertainty.

Today we published our pre-budget submission focusing on competitiveness, connectivity and investment.

Our CEO @EoghanOMW said… pic.twitter.com/6trDVlD4an

— ITIC (@Irishtourismind) August 13, 2025

Tipping point

"With unprecedented macroeconomic uncertainty and geopolitical upheaval, Ireland as a small open economy is particularly exposed," the ITIC's submission says.

"A mixed demand outlook, allied to cost of business pressures and capacity constraints, means that Irish tourism is at a tipping point.

"Budget 2026 needs to deliver on the Programme for Government commitments and provide appropriate supports to Ireland’s largest indigenous industry and biggest regional employer."

Eoghan O’Mara Walsh, CEO of ITIC, said: "Now is the time for Government to control the controllables and focus on domestic home-grown sectors.

"Tourism is the largest indigenous industry and biggest regional employer and needs to be supported in October’s budget."

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Competitiveness

In its submission, the ITIC says that in terms of competitiveness, "all evidence points to a worrying erosion" in Ireland's standings compared to international peers.

The ITIC is calling upon the Government to extend its reduced VAT rate of 9% for food services businesses to attractions, adventure operators, and caravan parks.

Additionally, the ITIC says costs of business pressures across energy, insurance, excise, and labour must also be addressed.

Connectivity

The ITIC notes that 70% of Ireland's tourism economy is dependent on international visitation and, as such, is calling for the "arbitrary" passenger cap at Dublin Airport to be lifted.

The ITIC added that Cork and Shannon Airports "must also be appropriately supported in line with EU state aid limits."

Further, "sea access and connectivity on the island should be prioritised too," the ITIC said.

Investment

The ITIC says that the State's investment of €251 million in tourism services is "wholly inadequate to meet the challenges ahead," and is calling for an increase of €90 million "to help deliver market diversification, a better regional spread of tourism, industry supports, sustainability initiatives, and a food tourism strategy."