The €6 billion that Irish people spent on holidays last year was back to levels not seen since 2007, and this year is poised to increase again as overseas trips are up by 7.4% in 2019, signalling a potential rise in spending to €6.5 billion.

The latest Consumer Market Monitor (CMM), published today by the Marketing Institute of Ireland and UCD Michael Smurfit Graduate Business School shows that household finances have been boosted by the increasing value of peoples’ homes, with household net worth per capita now standing at €158,000, up 70% from the low of 2012.

Furthermore, the disposable income of Irish households rose by 6% in 2018 to a total of €110 billion, significantly overtaking the last peak of €101 million in 2007.

The report suggests that 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 215% in 2012 to 124% this year.

Savings deposits grew by €4 billion in 2018, with deposits for a house purchase estimated to be a major factor, with approximately 30% of renters or 10% of all Irish households saving for a deposit.

It is estimated that 5,155,000 foreign holiday trips were made averaging 8 days and costing approximately €1,000 on average, meanwhile, 5,323,000 domestic holiday trips were made, typically short breaks of 3 days with an average spend of €230. 

Commenting on the report findings, Chief Executive of the Marketing Institute of Ireland, Tom Trainor 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."

Source: www.businessworld.ie