American tourism booming as Ireland considers new short-term let rules

As Summer approaches, Airbnb has revealed tourism to Ireland from North America is stronger than ever – with the number of US tourists higher than those from the UK or any other country. Rural destinations especially are set to reap the benefits of transatlantic footfall, with Ireland having its most dispersed year of travel yet in 2023¹. 

Almost 5,000 Irish towns, villages, parishes and cities have already received bookings through Airbnb for the summer of 2024. Last year there was an 8% increase in bookings taking place outside of busy city centres and over a third of guests visiting Ireland have said they chose to stay in an Airbnb because they wanted a local experience².

Hosts in rural towns are benefiting from the growing trend among US visitors, who are venturing beyond big cities and in some cases looking to trace their Irish heritage. Connemara witnessed a significant surge in the numbers of North American guests they welcomed in 2023, which was up 18% on the previous year. Killarney and Kilkenny joined Connemara among the top Irish destinations with a growing number of North American visitors on Airbnb, as US visitors move away from major cities. 

Tourism across Ireland is set to face major changes in the coming year as the Government continues work on the introduction of new rules for short-term lets. While Airbnb has long advocated for regulation, specifically a national registration scheme, we have concerns that new planning guidelines could have a detrimental impact on tourism in rural communities. This in turn will negatively affect local businesses and families who depend on vital tourism spend. Airbnb guests have made a significant impact on the Irish economy, exceeding over €500 million in 2022 alone, and supporting almost 5,000 jobs across Ireland. Ireland now has a unique opportunity to introduce clear and effective planning guidelines to support these benefits to the vibrant rural tourism landscape, rather than put it at risk. 

In Scotland, Airbnb has recently highlighted how the heavy handed new short-term let rules are harming the country’s tourism industry, limiting economic opportunities for local families. The low percentage of licences for short-term lets being granted has led to a rise in accommodation prices, including hotels where prices in Edinburgh have risen by 9% in 2024 alone³. 

Scottish travellers in particular are instead increasingly turning their attention to the north of England and cities such as Liverpool and Newcastle have experienced a surge in searches, suggesting they are becoming attractive alternative destinations. This echoes the situation in New York City, where the impact is similar, with the addition of activity moving to unregulated sites. 

Airbnb encourages the Government in Ireland to consult with hosts and stakeholders to prioritise this work on regulations, ensuring the implementation will protect rural tourism and families. In November 2023 we wrote to the Joint Oireachtas Committee on Tourism to make the case for clear planning guidelines that do not create unnecessary barriers for those with limited resources. We emphasised the importance of proportional rules that allow homeowners who rent out units such as granny flats or converted barns to continue to do so without the need for planning permission. Additionally, we called out the need for rules to consider those who also use their personal holiday home as a short-term let and have no intention of putting it on the long-term rental market, like host Brian:

“Renting out our Mountain View home to groups travelling on Airbnb has helped us afford our bills and pay for further education for our kids. We always make sure to point guests towards the same small businesses that we enjoy when we’re here in winter and I love to support travellers and the rural economy by connecting my guests with the best ways to eat, drink and enjoy Donegal like a local! I’ve even had an amazing experience helping one American guest trace their Irish family.

“We’re not sure if we’ll be able to keep our place running going forward as it’s not clear what planning permissions we’ll need and whether we’ll still be able to rent it out to visitors if it becomes more and more expensive.”

Brian Gilfedder, Airbnb Superhost in Donegal

“We have long supported the introduction of modern rules to bring transparency to short-term letting activity in Ireland and to help local authorities enforce rules while protecting everyday homesharers. Now the Government must also introduce effective, simple planning guidelines that will give hosts peace of mind and protect the tourism economy that many rural communities depend on. Airbnb has worked with governments across the world to balance the benefits of short-term rentals with local housing concerns, and we hope to work with the Government on guidelines that protect rural tourism.”

Derek Nolan, Head of Public Policy for Ireland, Airbnb

The majority of hosts on Airbnb in Ireland are everyday families who typically share their primary home for just three nights a month. The average Irish host earns more than €5,600 a year⁴ – approximately two months of additional pay for the median Irish household. More than half of hosts in Ireland say they host to afford the rising cost of living, and over a third say the additional income helps them make ends meet as energy prices and mortgage repayments increase⁵. 

Tourism is vital to families and communities in almost every city, town and village in Ireland. We believe new regulations and balanced planning guidelines, if implemented successfully, will help preserve our unique offering to international and domestic visitors, protect jobs and ensure that Ireland can continue to rely on and benefit from tourism.