According to responses to a special question added to the KBC bank consumer sentiment survey for May, Irish consumers do not plan to go wild in their holiday spending in 2021.
One in four plan to spend the same as in 2020 and while slightly more plan to spend more than to cut back (19% against 12%), the average outlay overall is likely to be broadly unchanged from last year.
Just over half of Irish consumers (54%) now plan to have a summer holiday in 2021 and a further 12% have yet to make up their minds.
This points to a solid rather than spectacular season for the domestic tourism industry overall, however, Fáilte Ireland has recently launched a new campaign aimed at encouraging Irish consumers to holiday at home this year.
19% of consumers say they are unable to afford a holiday this year, which is consistent with the 22.4% Covid-adjusted unemployment rate for May in capturing a cohort facing significant financial uncertainty at present.
Of the Irish consumers who said they wouldn't be going on holiday this year, 80% said it was due to COVID-19-related concerns.
Other reasons included seasonal work, no interest in taking holidays, undertaking home refurbishment projects, and pregnancy.
12% of those surveyed say they are unsure at present as to whether they will take a holiday this year.
Some portion of these responses may reflect uncertainty about the easing of foreign travel restrictions or a difficulty in assessing the pace at which a more general normalisation of tourism, both domestic and international, may occur.
Despite a rise in Irish consumer confidence to a 23 month high, a significant element of caution persists in general and a substantial number of Irish consumers remain financially constrained or facing uncertain futures to the point where holidays are out of reach.
© 2021 Checkout – your source for the latest Irish retail news. Article by Conor Farrelly. Click sign up to subscribe to Checkout.