Irish consumer spending dropped in the United States by 19% in the opening four months of 2026, as rising travel costs and geopolitical uncertainty prompted holidaymakers to rethink long-haul travel plans, according to new figures from Bank of Ireland.

The bank’s analysis of debit and credit card spending between January and April also found sharp declines across the Gulf region, with spending in Saudi Arabia down 35% and the United Arab Emirates falling by 36%.

The figures point to a more cautious approach by Irish travellers this year, particularly towards destinations traditionally viewed as premium long-haul markets.

Overall airline spending by Bank of Ireland customers fell by 5% year-on-year during the period, while hotel spending remained largely flat, slipping by just 0.65%.

In contrast, some destinations recorded strong growth as consumers sought better value options.

Spending in Mexico surged by 80%, helped by Aer Lingus’ new direct route to Cancun launched in January. Nordic destinations also performed strongly, with spending up 31% in Norway and 24% in Finland.

Elsewhere, spending by Irish tourists rose sharply in Czechia (+39%), Hong Kong (+27%), Bulgaria (+19%), Brazil (+18%) and Argentina (+13%).

Bank of Ireland said the data suggests travellers are becoming increasingly selective about where they holiday and how much they spend once abroad.

Gerardo Larios Rizo, Head of Hospitality Sector at Bank of Ireland, said the slowdown in the US and Gulf States likely reflected “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,” he said.

The spending trends mirror wider tourism industry data. CoStar STR hotel occupancy figures showed a 19% decline in occupancy across the Middle East during the same period, while Dubai recorded a 43% drop in hotel demand.

Traditional sun holiday destinations for Irish tourists showed little movement overall. Spending in Spain rose by 1.4%, while Portugal declined by 1.83% and France slipped by 0.9%. Turkey remained broadly flat at 0.5% growth.

According to Mr. Larios Rizo, stronger performance in parts of Europe and Latin America points to consumers prioritising affordability.

“The data suggests Irish consumers are still travelling, but they are becoming more selective about where they go and how they spend once abroad,” he said.

He added that softer international travel demand could also benefit the domestic tourism sector this year, as households redirect a greater share of their holiday budgets closer to home.

"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,” he said.

Industry observers will now be watching whether the trend continues into the peak summer season, particularly as airlines and hotels contend with weaker long-haul demand and increasingly price-conscious consumers.

*This article was originally published on BusinessPlus.ie.