Údarás na Gaeltachta
Údarás na Gaeltachta has said the industry more likely to be affected in the short term as a result of Brexit will be tourism.
The body, which looks after investment and job creation in the Gaeltacht regions including Donegal, issued a statement on the United Kingdom exiting the EU.
It says the impact that this will have on the Gaeltacht economy and the companies based there will not be clear in the short term until the process is fully completed.
It is estimated that it could take a number of years to work out all of the details, it adds.
But it warned that tourism could the first victim of Brexit.
It warned that falling Sterling will mean that such day-to-day attractions for cross border visitors to Donegal such as shopping and eating out could drop dramatically.
The statement says “In the short term, the industry most likely to be affected by the impact of Brexit is tourism, with 3.3 million or 40% of tourists to this country coming from the UK.
“With the rate of Sterling falling, for example, this country may not be as competitive in terms of value for money as it was previously for tourists from the UK.
“That said, other EU member states will be in the same position. This means that we must ensure that our tourist industry remains competitive.”
With many Donegal companies exporting directly to the UK, Udaras has said that much depends on the value of sterling.
“Typically, the UK market is the first step to export for many of our client companies. Currently, nearly 20% of our client companies’ export sales are to the UK and is worth €100 million a year. Much depends on the value of Sterling in the coming months.
“The client companies which export to the UK rely on that market and any uncertainty will create difficulties for trade.”
It concluded that Údarás will examine the implications for its client companies and investigate all future possibilities for them and the Gaeltacht economy.
