There was no “seismic surge” in retail spending in the Dublin economy in advance of Christmas, in part because custom from US tourists contracted sharply, the latest MasterCard SpendingPulse study said.
The research, produced on behalf of the four Dublin local authorities, found that the value of retail spending in the capital increased by just 0.9 per cent in the final quarter of 2023 compared to the third quarter, although it was 3.4 per cent higher year-on-year, and described the uptick as “a sustained level of growth in demand”.
Tourism spending in Dublin had “a disappointing conclusion to the year”. Although spending increased 5.7 per cent year-on-year, there was a 1.7 per cent contraction compared to the previous quarter, marking the first such quarterly reduction since the early phase of the pandemic.
The all-important US tourist market “continued on an unsteady path”, declining by a steep 16.4 per cent compared to the buoyant third quarter.
Romantasy, QuitTok and other words from a dystopia-coded year
Have Ireland’s data centre builders shot themselves in the foot through their own greed?
The old order of globalisation may be collapsing – and bringing Germany with it
Wonderwallets: the cost of everything in 2024, from Oasis tickets to Leinster House bike shelter
However, growth was recorded in the quarter for Dublin’s other key tourism markets, led by France, Britain and Germany, while spending patterns by Chinese visitors were broadly stable.
[ Dublin workers’ disposable income almost 15% higher than national averageOpens in new window ]
Overall, the entertainment sector – comprising hotels, bars and restaurants – was the main driver of quarter-on-quarter growth in the capital, expanding 2.4 per cent. This was followed by necessities, which grew 1.5 per cent, and household goods spending, which rose 1.3 per cent. However, there was a contraction in discretionary spending.
Spending in department stores and clothing outlets fell 1.1 per cent compared to the previous quarter, marking the third such contraction in 2023. This indicates that consumers may have tailored their spending patterns in response to inflation and rising interest rates, the researchers said.
The SpendingPulse data is provided by MasterCard Advisors and produced in conjunction with Grant Thornton on behalf of the four Dublin local authorities.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly - Find the latest episode here
