May 2019
DUBLIN
Mastercard SpendingPulse
Dublin Mastercard SpendingPulse Delivering Unique Insights for Consumer and Tourism Spend.
TOTAL DUBLIN CONSUMER SPENDING GROWTH EASES MODESTLY IN Q1
TOTAL RETAIL SALES INDEX (SA)
Both Ireland and Dublin experienced a mild deceleration in retail sales growth rates in Q1 2019. For Ireland, sales slowed from 4.2% YoY (SA) in Q4 2018 to 3.7% YoY (SA) in Q1 2019. Dublin sales growth slowed from 6.9% YoY (SA) in Q4 2018 to 4.3% YoY (SA) in Q1 2019. While retail spending in Dublin increased YoY, on a quarterly basis there was no change recorded. This may be linked to lower than normal quarterly growth rates in Necessities (0.1% QoQ, SA) and Discretionary Sales (0.2% QoQ, SA).
Tourism spending grew by 15.1% YoY in Q1 with weakness in UK spending being offset by strong trends from other major regions.
Tourist spending remained robust in Q1 growing by 15.1% vs Q1 2018. While UK tourism spending was weak (-5% YoY) spending from virtually all the other major regions we track saw accelerations in spending growth. One interesting area is tourism spending from China where Q1 2019 growth was almost 19% vs Q1 2018. This contrasts with many reports of falling Chinese tourism spending in the USA in recent months. Outside the UK, tourism spending has very positive momentum heading in to the high Spring and Summer season.
DUBLIN RETAIL SALES VALUE INDEX (SA)
METHODOLOGY
A macro-economic indicator, SpendingPulse™ reports on national and Dublin retail sales and is based on aggregate sales activity in the Mastercard payments network, coupled with estimates for all other payment forms, including cash and cheque. This information has been grossed up to present an estimate of the total retail sales of retail businesses in Ireland and Dublin to both residents and tourists. Data is seasonally adjusted but is not adjusted for inflation. Mastercard SpendingPulse™ does not represent Mastercard financial performance. SpendingPulse™ is provided by Mastercard Advisors, the professional services arm of Mastercard International Incorporated. See www.dublineconomy.ie for more info on methodology.
METHOD: ECOMMERCE
IRELAND DUBLIN
Non store Retailers including Electronic Shopping and Mail-Order Houses, Direct Selling Establishments.
RETAIL CATEGORY: DISCRETIONARY
STRONG GROWTH IN ENTERTAINMENT CONTINUES TO DRIVE OVERALL SPEND
On an annual basis, Dublin consumer spending in Q1 2019 was positively influenced by all four consumption types covered in the SpendingPulse. The strongest growth came from Entertainment with 12.0% growth YoY (SA). This is the third consecutive quarter of double digit growth in Entertainment spending in Dublin. Nationally, consumer spending increased by 3.7% YoY (SA), driven by similarly strong growth in Entertainment. Online sales in Dublin rebounded to 9.7% YoY (SA) in Q1 2019 following growth of 2.7% (SA) in Q4 2018.
RETAIL CATEGORY: NECESSITIES
IRELAND DUBLIN
Discretionary Retail: Department Stores and Clothing Stores.
RETAIL CATEGORY: ENTERTAINMENT
IRELAND DUBLIN
Grocery: all food and beverage stores.
RETAIL CATEGORY: HOUSEHOLD GOODS
restaurants and bars.
furniture, electronics and hardware. IRELAND DUBLIN
REDUCED UK TOURIST SPENDING OFFSET BY NOTABLE GROWTH FROM CHINESE & GERMAN MARKETS
For the fifth consecutive quarter tourism spend in Dublin has registered YoY growth in excess of 10%. Growth in Dublin in Q1 2019, of 15.1% (SA), was largely driven by the Chinese and German markets, registering growth of 18.8% (SA) and 18.5% (SA) respectively. The US (14.9% YoY) and French (16.2% YoY) markets also contributed strongly to overall tourism spend in Dublin.
Following three quarters of positive YoY growth in UK tourism spend in Dublin, at the end of 2018 it appears now that market has taken a negative turn at the start of 2019. In Q1 2019, tourism spend by the UK market fell by 5% YoY (SA). This downward trend is more evident on a quarterly basis with the market registering negative QoQ growth since Q2 2018. The
uncertainty created by Brexit, as well as the knock on effects on exchange rates and affordability perceptions of the Capital may all be feeding into this trend.
Nationally (incl. Dublin), growth of 3.5% YoY (SA) in tourism spend by the UK market was recorded in the first quarter of the year. Indeed, the data suggests that the UK market may be choosing to spend their money outside of the Capital. Quarterly, UK tourism spend rose by 2.3% (SA), the highest rate of quarterly growth since Q2 2016. Overall, tourism spend Nationally came in at 12.9% YoY in Q1 2019. The German market was the strongest contributor to the National performance, registering 15.6% YoY (SA) growth in Q1.
DUBLIN AND IRELAND TOURIST SPEND BY ORIGIN - Q1 2019 (SA)
OVERALL INCREASE IN TOURSIM SPEND IN DUBLIN +12.9% +15.1%
YOY OVERALL INCREASE IN TOURSIM SPEND IN IRELAND
YOY CHANGE IN SPENDING IN IRELAND +15.6% +18.5%
YOY CHANGE IN SPENDING IN DUBLIN
-5.0%
CHANGE IN SPENDING IN IRELAND
+16.2%
YOY CHANGE IN SPENDING IN DUBLIN YOY CHANGE IN SPENDING IN IRELAND
YOY CHANGE IN SPENDING IN DUBLIN
YOY CHANGE IN SPENDING IN DUBLIN YOY CHANGE IN SPENDING IN DUBLIN
YOY CHANGE IN SPENDING IN IRELAND +13% +18.8%
DUBLIN TOURISM SPEND SALES INDEX (SA)