Spending in the hospitality sector rose again in July as it continued to reopen to include indoor dining for those who are fully vaccinated.
According to the AIB Spend Trend, spending was up 30% in hotels, 28% in pubs and 10% in restaurants. Meanwhile, spending on airline tickets was up 19% as people started to travel internationally again.
Spending in the retail sector was down on the previous month with spending in clothing stores down 8%, in electronic stores down 2% and in homewares stores it down 9%.
Consumers spent an average of €395,000 an hour in pubs and restaurants throughout July as the good weather and further reopening helped increase consumer spending.
Those from the border counties recorded the biggest increase in restaurant spending during July, with consumers from Donegal, Monaghan and Leitrim reporting a 15% increase on June, while those from Cavan reported a 14% increase.
John Brennan, Head of SME Banking at AIB said the good weather in July, combined with the reopening and increased roll out of the vaccine has seen consumer spending in the hospitality sector continue to rise for another month. "Despite the return of international travel in July, consumers spent 30% more on hotels than the previous month indicating many are still opting to stay in Ireland for their holiday this year – a positive development for businesses right across the country."
Overall, consumer spending continued to rise in July, up 1% on June as the hospitality sector opened further. Card usage also continued to rise with chip and pin usage up 1%, contactless up 2% and digital wallet payments up 6%. Meanwhile, e-commerce spending was down almost 1% on June as people opted for spending their money in-store.
The busiest day for spending in July, according to the AIB Spend Trend, was the 30th, the Friday after indoor dining opened, with consumers spending over €8 million an hour in shops and businesses. The quietest day for consumer spending in July was Sunday, July 18.
