October Bank Holiday weekend welcomed boost for under-pressure Experience Economy

• 7 in 10 Experience Economy (EE) businesses identify reduced overseas demand as a key risk
• 80% of those in the EE expect to experience a wage increase in the next six months

Ibec, the group representing Irish businesses, has published an Experience Economy sentiment survey conducted in advance of the busy bank holiday and mid-term break period for the sector. Feedback from over 70 businesses operating in the EE shows a significant decline in confidence in the Irish economy, with 49% of businesses now less confident, compared to 28% six months ago.

The pulse survey also notes growing concern around Ireland as a strong tourism destination, with 7 in 10 businesses identifying this as a concern (up from 57%). This is largely due to respondents noting a reduced demand from overseas travellers.

The Experience Economy spans the arts, cultural, sporting, and heritage sectors, as well as hospitality, retail, travel, tourism, food and drink, entertainment, and events and contributes €4 billion annually to the Irish economy and employs over 330,000 people.

Avine McNally, Head of Membership at Ibec, said:

Across the bank holiday and the rest of the mid-term break, families, tourists, and many others will be enjoying the many aspects of our vibrant Experience Economy. From the activity surrounding the Dublin Marathon to events and family activities for Halloween, all of this will provide a welcome boost at a time when confidence in the sector is moving in the wrong direction.

Increased wages, significant labour policy changes, inflation, and rising operating costs have put this critically important sector in a precarious position over the past number of years, resulting in many closures.

While the research doesn’t fully capture the boost the sector will receive from the Government’s decision to permanently reduce the VAT rate to 9% for the hospitality sector beginning July 2026, it is important to appreciate the context of its introduction. The EE has been under substantial pressure, as reflected in this round of sentiment research, measures such as a targeted PRSI rebate may also be needed to further offset costs. A busy festive period will hopefully provide a further boost, creating the foundations for a more optimistic 2026.”

The survey shows that companies will continue to invest in skills development however we need to ensure that funding released from the National Training Fund in 2025 is made available to companies. A Voucher Scheme would support employers, and particularly SMEs, in addressing both the direct and indirect costs of training . It would also allow employers to select the training that best meets their workforce needs.

There is also good news for those working in the sector, with 8 in 10 expecting wage growth to continue, consistent with 2024, despite firms expecting total or domestic sales to remain the same.

The various challenges being faced by businesses may explain why more expect investment in sustainability- and, to a lesser extent, digitalisation- to decrease in the short term. However, 8 in 10 are planning digitalisation initiatives over the next 1–2 years, primarily to facilitate continuous improvement and increase efficiencies.