Irish splash out €225m on US shopping spree

UP to 150,000 Irish shoppers will splash out almost €225 million in American cities this month as they cross the Atlantic in search of cheaper Christmas gifts.

A record number of travellers are expected to hit New York, Boston and Chicago over the coming months, spending an average €1,500 each.

As festive celebrations kick off this week, Tour America say the unprecedented number of winter visitors are heading to the Big Apple, not only for presents, but partying.

“New York is as much a social event as it is a shopping trip,” said Mary McKenna, the groups’ managing director.

“Bookings are already up by over 30%, with new bookings still being made every day,” added Ms McKenna.

Huge savings have been made by seasonal shoppers making the trip to the US.

The price of U2’s new CD is €10 less than here, while buying an Apple iPod can save consumers over €35.

Also, shoppers in some stores can expect to make simple tax savings before they ever return home with their bags of goodies. In Bloomingdale’s and Macy’s in New York, a simple flash of your passport, as a non-US shopper, saves you paying sales tax.

The most popular are expected to be designer clothes and electronic items according to Tour America who surveyed 800 returning travellers.

The group also say it’s not too late for partying purchasers to book their festive flight.

Bookings are still available between now and Christmas for the Beacon, Wellington, and Fitzpatrick’s hotels in Manhattan, with prices starting at €599 for three nights, including flights and accommodation. Most flights are direct, with a few going via London.

But be warned. Revenue officials have their eyes peeled this year as some shoppers try to avoid paying VAT and/or duty on goods. Returning shoppers are only allowed bring items valued up to €175 in gifts, alcohol and souvenirs back into the country.

Yesterday saw the euro hit a 20-month high of $1.3282 against the dollar, a handy bonus for the travellers.

While shoppers may splurge their hard-earned money elsewhere, business leaders are still expecting a bumper spend at home. According to Chambers Ireland, all the signs are good that retailers’ tills will keep ringing away into the New Year.

“Shoppers at home are expected to spend €1,400 each over Christmas. While some are going abroad to shop, it’s a sign of buoyancy in the economy. Half of all consumers here don’t have mortgages,” said Sean Murphy, Director of Policy at Chambers Ireland.

Main purchases

* Most shoppers are interested in buying clothes (70%), especially designer items.

* After this, electrical goods like cameras and iPods are the most popular.

* Travellers also stock up on books and gift packs.

VAT/duty implications

* Every adult can buy €175 of goods before declaring VAT and/or customs duty.

* Rates of duty vary. None is paid on cameras, laptops or PlayStations. But clothing requires 12% to be paid.

* Travellers should check www.revenue.ie for details.