Dollar boost offset by restaurant prices for US tourists in Ireland this summer

The Bloomberg analysis finds that in Ireland this month that with inflation, a meal that once cost €89 ($100) now costs €98 ($100), taking into account the dollar-euro exchange rate. 

Ireland is among a small group of European tourist destinations where American tourists this summer will get little to no boost dining out despite the soaring value of the dollar, as inflation at local restaurants bites hard, according to Bloomberg data. 

Other destinations, including France and Turkey, are offering the best value for US tourists from a combination of the dollar exchange rate and rates of inflation in those countries, while Britain for American tourists is among the most expensive because of relatively high inflation and weak sterling. 

The analysis comes as Irish tourism chiefs are hoping for a boost this summer from a strong dollar against the euro because US tourists could expect to get better value spending here from the weak euro.       

The value of the dollar in July climbed to parity against the euro, its highest in around 20 years, meaning that $1 bought €1 of goods and services across the eurozone. The US currency has since slipped back somewhat but remains much stronger against the euro and sterling for some time.             

However, inflation rates vary across Europe, including in France which has one of the lowest consumer price inflation rates, which means that for US travellers their dollars can go even further in some countries where prices have risen less swiftly than elsewhere.  

According to the Bloomberg analysis, there will be no difference in what the US tourist dining out will pay in Ireland, Italy, Portugal, Greece, and Norway, because the benefit of the exchange rate for American travellers from the strong dollar will be offset by local inflation rates.      

The Bloomberg analysis finds that in Ireland this month that with inflation, a meal that once cost €89 ($100) now costs €98 ($100), taking into account the dollar-euro exchange rate. 

The best value for American travellers is eating out in Turkey, where restaurants are 59% cheaper, and in France which are 2% cheaper, in terms of dollars. 

In Turkey in August, with inflation, a meal that once cost 609 lira ($100), now costs 744 lira ($41). In France, with inflation, a meal that once cost €89 ($100), now costs €96 ($98), according to Bloomberg data. 

The Bloomberg data show that US tourists eating out can expect to pay more in Britain, Iceland, Spain, Netherlands, Belgium, Sweden, Austria, as well as Germany. 

In Britain, with inflation, a meal that once cost £77 ($100), now costs £86 ($104), or 4% more expensive, according to the Bloomberg rankings.