Retail spending in Dublin experienced a significant increase of almost 5% compared to the previous year, driven primarily by higher expenditure on entertainment, according to data released by MasterCard. The report, known as Spending Pulse, revealed that spending in the four local authorities in Dublin rose by 1.1% between April and June, in comparison to the previous three months, and by 4.7% when compared to the same period in the previous year. The report attributed this growth to inflation and strong domestic demand, with a particular emphasis on the 20.7% increase in spending on entertainment, including notable performances in hotels, bars, and restaurants.
The report also highlighted an acceleration in the sales of discretionary and household goods, with growth rates of 1.5% and 1.4% respectively over the three-month period. However, the rate of growth for necessities spending slowed down in relation to the beginning of the year, potentially due to the increased expenditure on entertainment. Nevertheless, the value of necessities expenditure, which has been impacted by rising grocery prices, expanded by 8.2% year-on-year.
In addition to these findings, the report raised concerns about Dublin’s tourism market, suggesting that it could impact the county’s ongoing competitiveness and attractiveness. Although overall tourism spending in Dublin increased by 3.1% between April and June compared to the previous three months, the UK and German markets experienced a decrease in spending of 15.9% and 4.2% respectively. Conversely, tourists from China and France increased their spending by 35.4% and 0.7% respectively during the same period.
Michael McNamara, the global head of Spending Pulse at MasterCard, noted that tourism spending in Dublin grew by 14% between April and June compared to the previous year, and the country as a whole experienced an increase of 18%. McNamara attributed the growth rate in tourism spending in Dublin to American tourists. He also highlighted that overall spending on entertainment in the country had significantly increased in comparison to the second quarter of 2022, while spending on necessities had risen by over 9% for the second consecutive quarter.
