MOST consumers in the north are planning to cut back on luxuries, leisure and social activities over the next year, according to a new survey.
The consumer sentiment survey, commissioned by Tourism Northern Ireland, showed 44 per cent of people plan to completely cut out big purchases such as cars, while one-in-five won’t travel abroad.
Just over half (54 per cent) said they expect to be “significantly negatively affected” by the cost of living crisis, with the hospitality industry set to feel the knock on effect.
Some 70 per cent said they will cut back on eating out at restaurants, 63 per cent said they’ll spend less in pubs and 60 per cent will reduce spending on events and festivals.
When it comes to tourism, one-in-three said they have no plans to change spending on overseas holidays, but 22 per cent said they’ll cut it out altogether, while 45 per cent will scale down.
Some 61 per cent said they’ll spend less on leisure day trips, with just over half (54 per cent) stating they’ll cut down on holidays and home and activities for the family.
Most respondents (58 per cent) said they’ll look for more “free things” to do on day trips.
However, the survey did show a continued reduction in anxiety around Covid-19, with 58 per cent stating their belief that the worst has passed.
Asked about their level of stress or anxiety around Covid, 40 per cent said “not at all”, compared to 13 per cent a year earlier.
Tourism NI chief executive John McGrillen said he was encouraged that Northern Ireland ranked well above Britain and the Republic in perceptions of value for money.
But he added: “While the latest findings indicate that people in Northern Ireland and the Republic of Ireland are likely to reduce spending on holidays because of cost-of-living pressures, both at home and abroad, it is positive that more than four fifths of those surveyed do not expect to give up their holidays.
“The findings on booking behaviours, and the developing economic situation, make it likely that operators will have to continue to anticipate short lead times from consumers who choose to make island of Ireland trips in the coming months.”
