Bank of Ireland Forecasts Surge in Summer Staycations
Bank of Ireland is projecting a notable rise in domestic tourism this summer, as recent card data reveals a 6.4% reduction in spending on air travel by Irish consumers. The data, published on Wednesday, examines debit and credit card transactions from January to April, highlighting a decline in spending in destinations such as the United States and the Gulf States.
The analysis shows spending in traditional European holiday destinations like Spain, France, Portugal, and Turkey remains relatively unchanged, with slight fluctuations in percentages.
“We have seen a noticeable drop in card spending in the United States and the Gulf States, which likely reflects heightened geopolitical and security concerns and a more cautious approach to long-haul travel,” stated Gerardo Larios Rizo, Bank of Ireland’s head of hospitality. “If this trend continues, there should be a significant increase in staycation spending this summer. The VAT rate reduction in July will also be welcomed by both the sector and travellers.”
Stable Hotel Occupancy and Revenue Growth
While air travel outside Ireland sees a decline, air seat capacity into the country is forecasted to grow by 3% over the last year. The Bank of Ireland reports that hotels are maintaining stable occupancy rates and strong average room rates through May.
Data from CoStar STR indicates positive revenue per available room in Irish cities such as Dublin, Cork, Kilkenny, and Galway. Limerick, in particular, achieved the highest average room rate at €184, marking a 9% increase compared to May 2025.
Dublin continues to shine, outperforming many European counterparts with occupancy levels above 80%, driven significantly by event-led demand.
US Tourism: A Key Player in Irish Economy
Failte Ireland anticipates a rise in North American visitors this summer, supported by a 7% increase in flight seat capacity from the USA compared to 2025. US tourists contribute significantly to Ireland’s economy, representing 40% of inbound tourism expenditure.
According to Mr. Larios Rizo, “Ireland benefits from a well-diversified demand base across the EU, North America, and the UK, while strong domestic tourism provides a natural buffer when international travel softens.”
With ongoing geopolitical uncertainties influencing long-haul travel, Ireland’s hospitality sector is poised to benefit from increased domestic tourism and a steady inflow of international visitors, ensuring a thriving summer season.
For the full details, visit the original source: irishexaminer.com.
