Irish Consumer Spending Falls Sharply in Gulf States and USA in Early 2026
- Card spending on airlines down 5% for early 2026
- Long haul destinations see a drop in Irish spending
- Staycations could be strong this year
Thursday 28 May 2026: Irish consumer debit and credit card spending fluctuated significantly in several major international markets in the first four months of 2026, according to new analysis of Bank of Ireland card spend.
A review of January to April (inclusive) debit and credit card spending by Bank of Ireland customers shows a sharp drop in the Gulf States and the United States. Spending in Saudi Arabia fell by 35%, while the United Arab Emirates recorded a similar drop (-36%). Bank of Ireland card spending fell by 19% in the United States, while in contrast Canada was up by 4%. Spend in some long-haul destinations also dropped – Indonesia (-20%), New Zealand (-15%) and Australia (-9%).
CoStar STR hotel occupancy figures for the same period show a 19% decline in the Middle East region. This trend is even more pronounced in markets heavily reliant on international travel – Dubai, for example, has reported a 43% drop in hotel demand.
Several markets recorded notable growth in spending by Bank of Ireland customers. Mexico saw a significant increase of 80%, supported by the new Aer Lingus direct flights to Cancun launched in January, while some Nordic countries saw a big spike in spending by Irish tourists, with Norway (+31%) and Finland (+24%). Spending also rose in a number of other destinations, including Czechia (+39%) – driven by the World Cup semi-final play-off held in Prague in March; Hong Kong (+27%); Bulgaria (+19%); Brazil (+18%); Argentina (+13%); Croatia (+11%); Slovenia (+11%); Greece (+10%).
Higher costs of long-haul travel, security risk and geopolitical volatility may all be contributing to reduced travel and related spending in traditionally popular destinations such as the US and Gulf region. Meanwhile, increased value-for-money is likely driving stronger activity in parts of Europe and Latin America.
Some traditional destinations for Irish tourists saw relatively flat spending – Turkey (+0.5%); France (-0.9%); Portugal (-1.83%) ; Spain (+1.4%). Overall, card spending by Bank of Ireland customers on airlines between January and April declined by 5% year-on-year, suggesting a slightly more cautious approach to international travel. Customer card spending on hotels has remained largely flat, slipping marginally by 0.65%.
Gerardo Larios Rizo, Head of Hospitality Sector, Bank of Ireland commented: “We’ve seen a noticeable drop in card spending within the United States and the Gulf States, which likely reflects heightened geopolitical and security concerns and a more cautious approach to long‑haul travel. There is also a sense that people are delaying booking decisions this year amid a broader air of uncertainty, which is never positive for tourism.
“At the same time, strong growth in markets such as Mexico and parts of Europe points to consumers seeking better value in destinations that offer a more competitive cost base. The data suggests Irish consumers are still travelling, but they are becoming more selective about where they go and how they spend once abroad.
“This softening in international travel spending may also point to more Irish consumers holidaying closer to home this year. Continued cost pressures, combined with ongoing uncertainty around global travel conditions, could encourage more households to redirect a greater share of their budgets to the domestic tourism sector. Hopefully, the spell of good weather we’re experiencing recently will encourage some late bookings and support the many excellent hotels we have throughout the country.”