Letter to Oireactas Committee 2025-2030

Introduction

The Short Term Rental (STR) did not cause the housing crisis in Ireland and is not the solution according to ESRI Profiling Short-Term Let Usage across Ireland.

On Wednesday, July 16, 2025, the ISCF submitted a formal email & posted information to the Oireachtas Tourism Committee outlining key issues and opportunities within the tourism sector. In this correspondence, we highlighted our priorities and proposed actions we believe are essential to support the Short-Term Rental (STR) sector.

Tourism EcoSystem

Tourism is Irelands largest indigenous industry and self-catering accommodation is the backbone of rural tourism, where hotel are not economically viable. As a tourism organisation the Irish Self-catering Federation represents businesses from micro tourism with 1-4 units or agents who market and manage lots of properties in an area such as Connemara Lettings. Typical demography of our members is rural, female 45+, meet & greet guests, this is their main income stream

The Tourism Eco-system links the self-catering guests with the restaurants, cafes, activity providers and many more small businesses am sending you a copy of a report written by economist Jim Power on the importance of the self-catering industry. An ESRI Report showed that most self-catering businesses For every €25 spent on the rental per night €75 is spent in the area, and a major economic driver of rural villages and towns. According to Saville building hotels is economically unviable to build hotels outside the large city’s of Cork, Limerick Galway and Dublin.

The ISCF and Failte Ireland both provide a National Quality Assurance System (NQAF) for all properties, with visual assessment of the businesses. These are then listed on a NQAF list twice a year on a listing Failte Ireland compiles ( January and June). A Register for STR is essential and we called for this at an Oireachtas Tourism Committee meeting in 2017. The EU Register for STR brings clear data on the industry, which we do not have at present, and is essential.

Whats An OTA

In the media the term Airbnb is used a lot, but they are just a sales agent or Online Travel Agent (OTA) and own none of the properties. Most are renovated properties, 2nd homes used for a few weeks of the year or purpose built self-catering units. As you will see in the Tourism EcoSystem the self-catering industry in Ireland is underdeveloped compared to other EU Countries, due to a lack of clarity on planning for over 10 years, and planning is still a major issue which may close down all these SME businesses. There is an issue in urban areas, and a Register for STR will resolve this. All income earned through the OTA’s is taxable with income rate tax at the higher rate (circa 50%) The ISCF Fears’ that 30,000 + planning applications could clog up the entire planning

Government Proposal

The present Government proposals will require all self-catering businesses to have STR planning before a Register for STR is introduced by May 2026. The Dept of Housing proposal is to have those in an area of 10,000 population with planning, and no permission for towns above a population above this. This will close down Tramore Waterford; Ballina, Mayo as well as the tourism capitol of Killarney. Many rural TD’s understand the importance of rural tourism, unlike the Dept of Housing.

Problems with Planning

* Timescale for completing the Dept of Housing proposals is very short. The National Planning strategy needs to be adopted first, then Planning Guidelines for STR and Glamping needle introduced. Then the proposal is to have all existing self-catering businesses apply for planning, at todays building standards with all approvals by April 2026. Timescale is too short, especially with the deficit of 540+ planning staff throughout the country. The ISCF Fears’ that 30,000 + planning applications could clog up the entire planning system.

Each Co Councils will have to implement the Government proposal on planning, closing down many small rural viable businesses, and owners say that most will be suited to long term rentals, and will not be added to housing stock.

* There are many existing properties with Ghost STR Planning – they many be longterm rended, permanently lived in, 2nd homes or in groups schemes on Government Contracts. There needs to be clear evidence based data with inspection of all these properties, so see the use of them in 2025, before any more STR planning can be grated.

* In some areas where there is a high density of Ghost STR properties such as Kilcrohane in West Cork. Local people are not being given planning permission for permanent homes in the village area, though most of the Ghost STR properties are actually 2nd homes and empty for much of the year.

Rural Irelands tourism economy is being sacrificed to deal with a housing problem which is mostly urban. The ISCF call on the Department of Dept of Housing to recognise the reality on the ground and grant exemptions to existing Self-catering.

The Self-catering sector did not cause the housing crisis and is not the solution. The sector is being scapegoated for a housing crisis which the Government cannot see a way to resolve. The Annual Economic benefit of the Wild Atlantic Way is estimated to be circa €7billion per annum. ( Failte Ireland) and Self-catering makes up 40% of the tourism beds nationally. This will remove €3.5 bill from the Wild Atlantic Way region alone.

A solution which protects established genuine tourism accommodation, with targeted exception for those who have the NQAF mark, treating smaller units with 4 bedrooms or less in a similar way to BnB with exceptions for regenerative tourism, farm diversification and other exceptions under the grandfather rule for a business which has functioned for 3-4 years. These can then be on a national Register for STR. With a register in place the sector can be developed, with sustainable practices and increased employment and rural economic prosperity