Irish holiday spend back at Celtic Tiger years – report
Households across the country are expected to spend around €6.5bn on holidays this year, a level of expenditure not seen since the Celtic Tiger years, according to a report from the Marketing Institute of Ireland and UCD Smurfit Business School.
The €6bn spent on holidays last year was back to the heady level last seen in 2007, and this year is expected to increase again as overseas trips are up by 7.4pc in 2019.
The figures are based on a sounder footing than at the last economic peak, reflecting a larger working population with good incomes rather than reckless borrowing, according to Mary Lambkin, a Marketing Professor at the UCD Michael Smurfit Business School.
The increase in holiday expenditure comes on the back of a rise in the disposable income of households, which was up 6pc last year.
Unlike during the Celtic Tiger, credit and borrowing are not major contributory factors in recent spending, with the ratio of debt/disposable income of Irish households down from a peak of 215pc in 2012 to 124pc this year, according to the report.
Elsewhere, savings deposits grew by €4bn in 2018, with deposits for a house purchase estimated to be a major factor.
Just under one in three renters and one in ten of all Irish households are saving for a deposit, the report states.
Tom Trainor, CEO of the Marketing Institute of Ireland, said: “The continuing growth in employment and income are leading to improvements in household finances and consumer spending, which continues to grow despite weakened confidence due the uncertainty of the Brexit outcome.”