HOTELIERS from Donegal recently met with TDs and Senators to discuss the key challenges facing Irish tourism.

They discussed the necessary measures the Irish Hotels Federation is calling for to ensure the successful long-term development of Ireland’s largest indigenous industry, supporting over 8,000 livelihoods in Donegal.

In the run up to Budget 2026, a key concern for hotels and guesthouses across Donegal is the exceptionally high operating costs that tourism and hospitality businesses are grappling with. This situation is particularly challenging for regional businesses that are heavily reliant on food services.

Paul Gallagher, Chief Executive IHF; Pat ‘The Cope’ Gallagher and John Ryan, The Ardilaun Hotel.

Carolynne Murray, Vice Chair of the Donegal Branch of the Irish Hotels Federation said, “Tourism businesses are struggling to deal with ever-increasing operating costs and tighter margins. It is now essential that the Government tackles this head on and delivers targeted measures to enhance cost competitiveness and support business viability.

This is at a time when Irish tourism is experiencing difficult headwinds on a number of fronts, including reduced tourism expenditure, economic challenges across our key source markets and increased political uncertainty internationally – all of which pose a serious risk to our industry.”

Paul Gallagher, Chief Executive IHF; Padraig Mac Lochlainn, TD and Michael Magner, President IHF.

Mrs. Murray notes that recent research by Fáilte Ireland shows that 51% of tourism businesses have seen a decrease in revenues to date in 2025 compared with last year.

Mrs. Murray stressed the importance of decisive action in the upcoming Budget.