Entertainment surge drives rise in Dublin retail spending

The report also highlighted a potential concerning trend in relation to Dublin’s tourism market which could raise issues for the county’s ongoing competitiveness and attractiveness

Spending on entertainment grew by 20.7% compared to last year with strong performances in hotels, bars, and restaurant

Retail spending in the capital grew by nearly 5% compared to last year which was largely driven by people spending more money on entertainment, new data from MasterCard shows.

According to MasterCard's Spending Pulse, spending in the four local authorities in Dublin between April and June increased by 1.1% compared to the previous three months and by 4.7% compared to the same period last year.

The report said that inflation was a likely contributor to this along with strong domestic demand. Spending on entertainment was central to this growth, up 20.7% compared to last year, with strong performances in hotels, bars and restaurants.

Growth also accelerated in discretionary and household goods, sales growing 1.5% and 1.4% respectively over the three months. 

Necessities spending remained on an upward path but the rate of growth slowed relative to the start of the year potentially related to the increased entertainment expenditure, the report said.

The value of necessities expenditure, which has been subject to upward pressure from rising grocery prices, expanded by 8.2% year-on-year.

The report also highlighted a potential concerning trend in relation to Dublin’s tourism market which it said could raise issues for the county’s ongoing competitiveness and attractiveness.

Between April and June, overall tourism spending grew by 3.1% compared to the previous three months. However, the UK and German markets were concerning as they both saw a reduction in spending during this time of 15.9% and 4.2% respectively.

On the other side, tourists from China and France increased their spending by 35.4% and 0.7% respectively. 

Michael McNamara, global head of Spending Pulse at MasterCard, said overall tourism spending between April and June was up 14% in Dublin, compared to last year, and up 18% across the country. He said the growth rate in tourism spending in Dublin was driven by American tourists.

“For the country overall, spending on entertainment was up considerably compared to Q2 2022, while spending on necessities was also up over 9% for the second consecutive quarter,” he said.