Insight into government budget allocations for refugee and asylum seeker housing and facilities.
Busting the Bank: Ireland's Eye-Watering Refugee Accommodation Spending Revealed
Here's the shocking truth about Ireland's refugee accommodation spending. In the first three months of 2025, a whopping €401 million was shelled out by the government for housing International Protection applicants and Ukrainian refugees. Yes, you read that right – four hundred million euros!
These spending figures, recently unveiled by the former Department of Integration, paint a staggering picture of the costs associated with the first quarter of 2025. But wait, it's worth noting that this sum is lower compared to last year's spending, which ranged from €424 million to €490 million quarterly.
Unsurprisingly, private sector accommodations comprised a significant chunk of this colossal spend. A whopping 97% of the department's purchase order spends of €20,000 or more, as detailed in the report, were allocated to the private sector.
While hundreds of providers benefited from Government payments, 91 of them received more than €1 million in the first quarter of 2025, accounting for a combined €52.5 million. Among these top players, Citywest emerged as the biggest earner, netting €18.7 million, almost double compared to the next best paid accommodation provider.
The government aims to move away from relying on the private sector for accommodating refugees and asylum seekers. So, inevitably, the Minister for Justice announced the Cabinet's approval of his plan to purchase Citywest for a whopping €148.2 million, touting it as "value for money."
For several years, Citywest – operated by Cape Wrath Hotel Unlimited – has served as a primary hub for International Protection and Ukrainian refugee accommodation. Last year, this operator alone secured €70.86 million in accommodation payments from the government.
It's worth highlighting that despite the sale, there will still be some bills to be footed, as a "transition plan with the current service provider for a period of 12 months" will ensure smooth operations at the site. Cape Wrath Hotel Unlimited will continue to oversee the management and provision of services, including catering, cleaning, maintenance, security, resident check-ins, operational support, finance, and other services.
The Department of Integration's quarterly purchase order report sheds some light on the additional Citywest expenses incurred during January, February, and March 2025, such as over €709,000 on security and €580,000 on meals. All these expenses, of course, are inclusive of VAT.
In the first quarter of 2025, a total of €267 million was spent by the State on accommodation and related costs for International Protection applicants, with nearly €133 million allocated for Ukrainian Beneficiaries of Temporary Protection. Separately, almost €1.7 million was also spent on modular accommodation for International Protection applicants during the same period.
Notably, after Citywest operator Cape Wrath Hotel Unlimited, Mosney Holidays PLC emerged as the second-best paid accommodation provider, receiving €9.7 million for providing accommodations at the former holiday resort in Co Meath. Holiday Inn Dublin Airport, on the other hand, was awarded €8.5 million.
It's no secret that 2025 saw a record number of people seeking protection in Ireland – 18,561. However, fewer asylum seekers are seeking protection this year, with only 5,037 seeking asylum in Ireland by May 31, contrasting with 9,199 during the same period in 2024. Yet, there's no denying the real demand for accommodation for asylum seekers. As of May 4, 2025, 32,934 individuals, including 9,442 children, were residing in International Protection accommodations.
For more than two years now, male asylum seekers seeking international protection in Ireland are often not offered accommodations on arrival due to ongoing accommodation shortages. As of May 4, 2025, 2,987 asylum seekers were still waiting for an accommodation offer from the State. The decline in the number of Ukrainian refugees in State-provided accommodation, which dropped from nearly 60,000 at the end of 2024, can be attributed to the state limiting free accommodation provision for new arrivals to three months and trimming supports for those in hotel-style accommodations. As of June 1, 2025, there were 23,599 Ukrainian refugees residing in State-provided accommodations.
Stay tuned for more updates on the ever-evolving landscape of Ireland's refugee accommodation spending. Obviously, we'll keep you informed about any developments, so you can sit back and enjoy the ride! 😉 💸🏨🇮🇪
The private sector, notably Citywest, accumulated a significant portion of the €401 million spent on refugee accommodations in the first quarter of 2025, with Citywest alone netting €18.7 million from the government. In an effort to reduce reliance on the private sector, the government aims to purchase Citywest for €148.2 million, asserting it as a prudent investment.
