Hospitality spending continued to recover in July as the good weather and the resumption of indoor dining fuelled an increase in consumer activity, according to new data published by AIB.
The bank’s latest Spend Trend survey suggests spending was up 30 per cent in hotels, 28 per cent in pubs and 10 per cent in restaurants. Meanwhile, spending on airline tickets was up 19 per cent as people started to travel internationally again.
The rebound is expected to be aided by the unwinding of savings built up during lockdown.
The busiest day for spending in July was the 30th, the Friday after indoor dining opening, with consumers spending more than €8 million an hour in shops and businesses.
According to the report, consumers spent an average of €395,000 an hour in pubs and restaurants throughout July.
Those from the Border counties recorded the biggest increase in restaurant spending during July, with consumers from Donegal, Monaghan and Leitrim reporting a 15 per cent increase on June, while those from Cavan reported a 14 per cent increase.
Retail sector
Spending in the retail sector was down month on month, however, with spending in clothing stores down 8 per cent, in electronic stores down 2 per cent and in homewares stores it was down 9 per cent.
Overall, consumer spending rose by 1 per cent in July month on month. Card usage also continued to rise with chip and pin usage up 1 per cent, contactless up 2 per cent and digital wallet payments up 6, while e-commerce spending was down 1 per cent as people opted for spending their money in-store.
John Brennan, head of SME banking at AIB, said: "The good weather in July, combined with the reopening and increased rollout of the vaccine has seen consumer spending in the hospitality sector continue to rise for another month which is positive to see.
"Despite the return of international travel in July, consumers spent 30 per cent more on hotels than the previous month indicating many are still opting to stay in Ireland for their holiday this year – positive development for businesses right across the country," he said.
