PRESS RELEASE. – 06/11/2025
Tourism on the Brink
Irish Self-Catering Federation warns proposed planning legislation risks devastating Ireland’s rural holiday sector
Minister Michael Healy-Rae to open ISCF Annual Conference on November 11th. Clare, Ireland – November 2025
The Irish Self-Catering Federation (ISCF) has warned that the Government’s proposed Short-Term Rental (STR) legislation poses a serious threat to the future of rural tourism, following the latest data from Fáilte Ireland’s Tourism Barometer showing confidence in the accommodation sector has slumped, with more than half of businesses reporting declining revenues.
According to the data, 51% of tourism businesses nationwide have seen reduced revenue so far in 2025, with self-catering among the hardest hit — 62% of operators are down on last year. Both domestic (–58%) and overseas (–62%) visitor markets are weaker than 2024, while inflation and escalating energy and insurance costs continue to squeeze margins.
ISCF CEO Máire Ní Mhurchú said the findings confirm the Federation’s warnings about the fragility of Ireland’s rural tourism model. “Self-catering is the backbone of rural tourism. Without it, visitors will simply have nowhere affordable to stay despite the data from Failte Ireland showing we make up over 40% of tourism beds,” said Ní Mhurchú. “The proposed legislation may be well-intentioned for urban housing markets, but in rural Ireland it risks closing the doors of hundreds of small, family-run tourism businesses that have sustained local economies for decades.”
An ISCF member survey carried out this month highlights the depth of concern among rural accommodation providers, with members reporting spiralling costs and falling confidence.
• 74% say their bookings for 2025 are down compared to this time last year.
• 68% report operating costs have increased by more than 20%.
• Many cite electricity, insurance, and cleaning costs as “unsustainable.”
One long-standing Mayo operator commented: “We’ve been welcoming families for 25 years but between higher costs, falling bookings, and the uncertainty around new STR rules, we’re questioning if we can continue.”
Another member in West Cork added: “Hotels in Dublin and other cities are charging record rates, yet rural businesses like ours may soon be legislated out of existence. That’s not a balanced tourism policy.”
The Fáilte Ireland Tourism Barometer highlights that rising hotel prices, particularly in major cities, are undermining Ireland’s competitiveness. Despite strong room yields, hotels are also losing business as overseas visitors seek better value elsewhere.
Adding to industry concern, leading tourism voices have also warned of the cumulative risks facing the sector.
“We have capacity constraints in Irish tourism at the moment from the Dublin Airport passenger cap right through to the shortage of hotels through to the dangerous short-term letting legislation that is coming down the tracks that could denude rural and coastal Ireland of holiday homes,” said Eoghan O’Meara Walsh, CEO of the Irish Tourism Industry Confederation.
Travel writer Eoghan Corry added: “We have misguided politicians chasing down short-term rentals in the hope they can deliver them into the long-term rental market. The international experience is that it does the opposite — it cuts off tourist options and could cost us more than half of our tourism beds unless something is done about it.”
Máire Ní Mhurchú warned that removing self-catering options from the market would make matters worse:
“If Ireland loses its self-catering stock, accommodation prices will spiral even further, making holidays in Ireland unaffordable for many. There is a clear difference between city short-term lets and genuine self-catering tourism. Legislation that treats them as the same will only accelerate rural decline.”
The Irish Self-Catering Federation is again calling on Government to grant exemptions for bona fide tourism operators in rural and coastal areas and to work with the sector on a practical, fair strategy.
ISCF’s key recommendations include:
- Raising the population threshold for mandatory planning permission from 10,000 to 30,000, ensuring only urban areas facing genuine housing pressures are affected.
- Introducing a national register to distinguish between compliant, tourism-registered operators and unregulated city lets.
- Supporting family-run, registered accommodation providers through fair exemptions (a “grandfather rule” for those in business over six years) and clear planning guidance.
The ISCF members will gather for their Annual Conference in the Armada Hotel, Spanish Point, Co. Clare on 10–11 November. The event, which will be opened by Minister of State Michael Healy-Rae T.D., will focus on the future of Ireland’s self-catering industry, with discussions on sustainability, regulation, and rural tourism policy.
End of Release
Self-Catering is 2nd largest tourism beds provider in 2025
Media Contact:
Garrett Harte, Harte Media – M: 087 955 5936 | E: garrett@hartemedia.ie
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About the Irish Self-Catering Federation (ISCF)
The Irish Self-Catering Federation (ISCF) is the national representative and lobbying body for owners of self-catering properties in Ireland. Established in 1998, the ISCF advocates on behalf of its members to promote and develop the interests of the self-catering sector across the country. The ISCF has called for a Register for STR since 2017.
Recognized by Fáilte Ireland, local and central government, and key tourism stakeholders, the ISCF works to ensure that self-catering accommodation providers have a unified voice in policy discussions and industry developments. The federation represents a diverse range of property owners, from individual holiday home operators to larger agencies and groups.
One of the ISCF’s key initiatives is the operation of LetsGoSelfCatering.com, an official property listing platform that allows guests to book directly with self-catering property owners throughout Ireland. This platform aims to provide a comprehensive national listing of quality-assured self-catering accommodations.
In addition to national advocacy, the ISCF is a member of the European Holiday Homes Association (EHHA), engaging in discussions and policy development at the European level to support the self-catering industry.