Businesses in the ‘experience economy’ are expressing a “significant decline in confidence” according to a new survey by Irish employers group, IBEC, with almost 50 percent of businesses asked less confident about the future.
Over 70 businesses operating in the experience economy (EE) were questioned as part of the sentiment survey, as part of which 49 percent of businesses expressed less confidence, compared to 28 percent six months ago.
The EE covers such industries as hospitality, the arts, tourism, food and drink, sports, culture and more.
According to IBEC, it contributes approximately €4 billion to the Irish economy annually and employs over 330,000 people.
The survey also identified “growing concern around Ireland as a strong tourism destination”, with 7 in 10 businesses stating this as a concern (up from 57 percent), a change owing to respondents noting a reduced demand from overseas travellers.
Commenting on the findings, Head of Membership at IBEC Avine McNally said that factors like 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”.
Despite this, the same survey found that eight in 10 of those surveyed expected wage growth to continue, even though firms expected total or domestic sales to remain the same.
“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,” Ms McNally said, adding that “a busy festive period will hopefully provide a further boost, creating the foundations for a more optimistic 2026”.
