Irish spending in the US and Gulf falls amid 'heightened geopolitical and security concerns'

Between January and April this year, Bank of Ireland said customers spending on credit and debit cards 'fluctuated significantly in several major international markets'.

Irish consumer spending in the US as well as the Gulf states fell significantly during the first few four months of this year, “which likely reflects heightened geopolitical and security concerns and a more cautious approach to long‑haul travel,”  data from Bank of Ireland shows.

Between January and April this year, spending by Bank of Ireland customers on credit and debit cards “fluctuated significantly in several major international markets”.

Unsurprisingly, there was a sharp drop in spending across the Gulf states in light of the ongoing conflict between Iran and the US/Israel.

Spending in Saudi Arabia fell by 35%, while the United Arab Emirates recorded a 35% drop. Irish spending in the US also saw a 19% drop compared to last year.

Other long-haul destinations also recorded a fall-off in spending, with Indonesia recording a 20% drop, New Zealand down 15%, and Australia down 9%.

While a decline was recorded in the US, spending across the rest of North America increased with Canada up 4% and Mexico up 80%, supported by the new Aer Lingus direct flights to Cancun launched in January.

In Europe, spending was up across numerous countries with the Nordics experiencing a large spike — Norway, up 31% and Finland up 24%.

World Cup

Spending also rose in a number of other destinations such as Czechia, up 39% — driven by the World Cup semi-final play-off held in Prague in March — Hong Kong, up 27%; Bulgaria, up 19%; and Brazil up 18%.

“Higher costs of long-haul travel, security risk, and geopolitical volatility may all be contributing to reduced travel and related spending in traditionally popular destinations such as the US and Gulf region. Meanwhile, increased value for money is likely driving stronger activity in parts of Europe and Latin America,” Bank of Ireland said.

Card spending by Bank of Ireland customers on airlines between January and April declined by 5% year-on-year, “suggesting a slightly more cautious approach to international travel”. Customer card spending on hotels has remained largely flat, slipping marginally by 0.65%.

Head of hospitality sector with Bank of Ireland Gerardo Larios Rizo said they’ve seen a noticeable drop “in card spending within the United States and the Gulf states, which likely reflects heightened geopolitical and security concerns and a more cautious approach to long‑haul travel".

“There is also a sense that people are delaying booking decisions this year amid a broader air of uncertainty, which is never positive for tourism.

 “The data suggests Irish consumers are still travelling, but they are becoming more selective about where they go and how they spend once abroad,” he added.