Dublin Economic Monitor - August 2018

Dublin Economic Monitor issue 14

August 2018

In this issue LATEST DUBLIN ECONOMIC DATA IHS MARKIT DUBLIN PMI KBC/ESRI CONSUMER SENTIMENT MASTERCARD SPENDINGPULSE CONSTRUCTION DRIVES HIGHEST QUARTERLY INCREASE IN EMPLOYMENT IN 10 YEARS SANDYFORD BUSINESS IMPROVEMENT DISTRICT DUBLIN BAY BIOSPHERE PARTNERSHIP

WELCOME

HIGHLIGHTS Dublin's unemployment rate falls to 5.7% in Q1 2018.

Residential rents continue on upward trend with tenants paying an average â‚Ź1,500 in Q1 2018.

Residential property prices inflation moderated in May 2018 registering growth of 10.7% YoY. Public transport trips in Q1 2018 53.9 million pubic transport trips were undertaken, an additional 2.4 million trips over Q1 2017.

Housing completions in Dublin totalled 5,600 in 2017 with a further 1,214 completions in the first quarter of 2018.

Dublin Airport welcomed an additional 16,500 passengers in March 2018 compared to March 2017.

The Mastercard Dublin SpendingPulse Consumer spending in the Dublin economy grew 5.2% YoY in Q2 2018 while tourist expenditure was up 16.2% YoY, driven mainly by the US and French markets.

The Dublin MARKIT PMI Output continued to rise sharply in the Dublin private sector in Q2 2018, extending the current sequence of growth to 23 quarters.

The Dublin PMI moved up to 58.5 from 58.0 in the opening quarter of the year.

KBC/ESRI Consumer Sentiment Overall, consumer sentiment remains in positive territory but Q2 2018 has seen a broad-based downturn in confidence relative to Q1. The decline has occurred both in and outside Dublin suggesting a broad-based moderation in sentiment. image: nigel motyer winner of the best photograph of a fish or mammal category in the dublin bay biosphere underwater photography competition 2018.

2 //

welcome to the august 2018 issue of the dublin economic monitor

T

he Dublin Economic Monitor is a joint initiative on behalf of the four Dublin Local Authorities, and is designed to be of particular interest to those living and doing business in Dublin or consideringlocating here. It is produced

by EY-DKM Economic Advisory Services, with KBC/ESRI delivering the Dublin Consumer Sentiment data and IHS MARKIT delivering the Dublin Purchasing Managers' Index (PMI).

We also partner with Mastercard to use their SpendingPulse reports to better understand retail and tourism spending patterns. The SpendingPulse is derived from anonymised and aggregated card transaction data as well as other means of payments such as cash and cheques.

This data helps the city develop new insights on the spending patterns of Dubliners and tourists, as well as comparing the Capital's performance Dublin City Council

South Dublin County Council

to the whole of Ireland (see centrefold supplement).

The special articles this quarter include one from Sharon Scally, Chairperson of the Sandyford Business Innovation District (BID) discussing how they are driving business development in the area and trying to achieve Innovation District status by 2021 (p.12). While Les Moore, Chair of the Dublin Bay Biosphere Partnership talks about the business & enterprise opportunities in the unique UNESCO urban site which covers over 300 km2 of the Dublin region (p.14).

We hope you find the Monitor useful and welcome any feedback. You can sign up to our quarterly mailing list and access the Monitor resources online at www.dublineconomy.ie. The next release will be published online on November 8th 2018.

Fingal County Council

DĂşn Laoghaire Rathdown County Council

This document provides general information on the Dublin economy. It is not intended to be used as a basis for any particular course of action or as a substitute for financial advice. The document is produced independently by EY-DKM Economic Advisory Services; the views and opinions expressed are those of the relevant author, and do not necessarily reflect the views of the Dublin Local Authorities.

The Dublin Local Authorities disclaim all liability in connection with any action that may be taken in reliance of this document, and for any error, deficiency, flaw or omission contained in it.

ECONOMY

GLOBAL ECONOMY

NATIONAL ECONOMY

According to the IMF’s World Economic Outlook for April 2018, the global economic upswing of the past two years has become broader and stronger. Indeed their forecasts indicate growth of approximately 4% over the next two years.

In the US growth is forecast to increase from 2.3% to 2.9% this year before a slight moderation in 2019. The IMF note that the expected macroeconomic impact of the December 2017 tax reform – namely the lower corporate tax rate and firmer external demand - is to boost short-term activity. Since the last publication, the US and EU have declared a ceasefire in their trade war with both sides agreeing to put on hold any new tariffs.

The IMF has also revised upward their expectations of growth in the Euro Area, reflecting stronger-than-expected domestic demand, supportive monetary policy and improved external demand prospects. As such, the Euro Area is forecast to grow by 2.4% in 2018 before falling back slightly in 2019 to 2%, considerably lower than growth rates forecast for Ireland.

The latest results for Irish GDP show annual growth of 7.2% in 2017.

GNP increased at a rate of 4.4% for the same period, revised from a preliminary estimate of 6.6%. Modified Gross National Income (GNI*), an indicator designed to exclude globalization effects that disproportionally impact the measurement of the size of the Irish economy, indicated more modest growth of 3.0% in 2017, while another alternative measure, Modified Domestic Demand (MDD), which accounts for the effects of aircraft leasing and the import of intellectual property, shows the economy grew by 1.4%. It is clear from both GNI* and MDD that the underlying rate of growth in the Irish economy is much less than suggested by GDP or GNP. Personal consumption, an important indicator of how the domestic economy is performing, increased by 1.6% in 2017. Over the last six years, the largest increase in value added (the difference between production value and intermediate consumption) in the five key sectors has come in industry, as observed in the Figure below.

This is followed by professional, admin and support services and information and communication. Increases in value added to public administration, education and health, however, have been minimal.

eu (28) and irish gdp growth rates

trends in value added by sector 2011=100

35%

240

30% 25%

220

20%

200

15%

180

10%

160

5% 140

0% 120

-5%

100

2011

2012

2013

2014

2015

2016

2017 80

Ireland

EU (28)

Industry excluding construction

source: eurostat. note: current prices

Professional, administration and support services

Distribution, transport, hotels and restaurants

2017

2010

2016

2009

2015

2008

2014

2007

2013

2006

2012

2005

2011

-10%

Information and communication

Public administration, education and health

Forecasts for the UK remain broadly unchanged and indicate a continued slow-down in growth in the UK over the next two years.

Business investment is expected to remain weak, while concerns over higher barriers to trade and lower foreign direct investment in the wake of Brexit are expected to leave the UK growing below its potential growth rate. However, inflation remains at 2.7% in 2018, above the Bank of England target of 2%, on foot of diminishing slack in the economy together with the pass-through effects of depreciation of the pound.

Brexit remains one of the key risks to growth in the Irish economy.

Following the publication of a White Paper, in which the UK government had advocated for a softer Brexit than previously envisaged, on 19 July the EU issued a document underlining the need for Member States to prepare for a no-deal scenario. This emphasizes that the risk of a no-deal and a significant shock to the Irish and UK economy remain very real.

major economies gdp growth forecasts

irish macroeconomic growth forecasts

2017 %

2018 %f

2019 %f

global

3.8

3.9

3.9

uk

1.8

1.6

1.5

us

2.3

2.9

2.7

euro area

2.3

2.4

2.0

germany

2.5

2.5

2.0

japan

1.7

1.2

0.9

china

6.9

6.6

6.4

india

6.7

7.4

7.8

source: imf, april 2018.

source: central statistics office.

gnp gdp private consumption public expenditure investment exports imports unemployment rate employment cpi inflation

2017 %E

2018 %f

2019 %f

4.4% 7.2% 1.6% 3.9% -31.0% 7.8% -9.4%

5.9% 4.6% 2.1% 3.1% 10.1% 6.1% 6.5%

5.0% 4.0% 2.0% 2.9% 8.0% 5.9% 6.5%

6.7% 2.9% 0.3%

5.7% 2.3% 1.0%

4.9% 2.0% 2.1%

sources: ey-dkm forecasts. e: estimate f: forecast

// 3

DUBLIN ECONOMY

CONSTRUCTION SECTOR PROVIDES EMPLOYMENT BOOST IN EARLY 2018

challenges persist in the housing market with average rents at all-time high The upward trends observed in Dublin’s labour market at the end of 2017 have continued into 2018. The unemployment rate in the Capital now stands at 5.7%, the lowest since early 2008. The labour market has seen strong improvements with a further 13,200 people employed in the Capital in the quarter to Q1 2018. There are currently 685,500 people in employment in Dublin, an increase of 34,500 in the year.

The Human Health & Social Work sector continues to register strong growth in employment with an additional 8,700 people added between Q1 2017 and Q1 2018. Construction has also been a key driver of growth in employment with an additional 16.7% (4,700) employed in the year.

House prices in Dublin increased by a further 10.7% in May 2018, the 12th consecutive month of double digit YoY growth.

However, it does represent a slowdown in the rate of inflation with YoY growth of 13.0% recorded in April 2018. Growth rates are equally strong outside Dublin with 14.1% YoY growth recorded.

Pressure continues in the rental market also.

In Q1 2018 the average monthly rent in Dublin was €1,527, a 7.8% increase in the year. Rental growth in the Greater Dublin Area (GDA) and outside of the GDA have also remained strong, registering 6.4% and 6.6% YoY growth respectively. Data from the CSO indicate that 1,214 houses were completed in the Dublin region in Q1 2018. With a total 14,420 houses completed nationally in 2017 the market is still well below the targeted 35,000 completions required annually to meet demand.

Passenger numbers on Dublin’s four public transport systems and at Dublin Airport have dipped slightly in Q2 2018. Passenger arrivals at Dublin airport dipped 0.07% in the month to March 2018, although they rose 16,500 YoY. On Dublin’s public transport, passenger numbers are also down marginally in the quarter by 0.2%, although they are up 4.6% YoY. It is too early to say whether this represents a change in the long-running upward trend in both indicators.

According to KBC/ESRI, consumer sentiment in Dublin remains in positive territory in Q2 2018 compared to one year ago.

However there has been a broad-based downturn in confidence relative to Q1 2018. Austin Hughes, Chief Economist at KBC Bank Ireland, explains:

4 //

“Dublin consumers became a little more cautious in the second quarter of 2018 as increased uncertainty about the global economy translated into some nervousness about the outlook for jobs and a greater caution in relation to household spending plans. While the survey suggests confidence has slipped somewhat of late, it is important to emphasise Dublin consumers remain broadly positive in their thinking on the economy and their personal finances.”

Reflecting YoY improvements in consumer sentiment there has been further strong growth in retail sales in Q2 2018 as measured by the Mastercard Dublin SpendingPulse. According to Michael McNamara, Global Head of SpendingPulse, .the Mastercard data reflects the improvements in the first quarter 2018:

"Overall the retail environment in Ireland remains solid with a 4.5% growth rate for retail sales across the country with Dublin’s performance particularly strong at 5.2% over Q2 2017. On the tourism side, expenditure rose 16.2% YoY with some of the most exciting growth in tourism spend is coming from the U.S and China” According to Dublin’s IHS Markit Purchasing Managers’ Index (PMI), output continued to rise sharply in the Dublin private sector during Q2 2018. Andrew Harker, Associate Director at IHS Markit, notes:

“The Dublin private sector continued to perform strongly midway through the year, with output growth ticking up from that seen in the opening quarter. This improvement was partly due to a marked rebound in the manufacturing sector, which saw growth recover from the weathereffected slowdown in Q1. With new order inflows and hiring continuing apace, the Dublin economy is in a good position heading into the second half of 2018.

Data suggest that strength in the Irish economy is not restricted to the capital, with rates of growth in output, new orders and employment in the Rest of Ireland only marginally weaker than recorded in Dublin.”

DUBLIN ECONOMIC INDICATORS

DUBLIN ECONOMIC INDICATORS

Dublin Max 14.2%

14% 12% 10% 8% 6% 4%

Dublin

Q1 18

Q3 17

Q1 17

Q3 16

Q1 16

Q3 15

Q1 15

Q3 14

Q1 14

Q3 13

Q1 13

Q3 12

Q1 12

Q3 11

0%

Q1 11

2%

Q3 10

Dublin registered a boost in employment levels in Q1 2018.

QoQ the number of people employed rose by 13,200, the strongest quarterly increase in the last 10 years. In the past year 34,500 additional people became employed bringing the total number employed to 685,400 – the highest in 10 years.

Unemployment has also declined in the past three months with the rate in Dublin falling to 5.7% in Q1 2018 while the rate nationally is only marginally higher at 5.8%.

National Max 15.9%

16%

Q1 10

source: cso labour force survey (lfs). dublin seasonally adjusted by ey-dkm.

18%

Q3 09

dublin unemployment (sa) year on year change % points (sa) dublin employment '000s (sa) year on year change '000s (sa)

q1 ' 18 5.7% -1.0 685.4 +34.5

dublin & national unemployment rate % (sa)

Q1 09

highest quarterly increase in employment in 10 years

National

source: cso lfs. dublin seasonally adjusted by EY-DKM

construction sector returns to the fore in employment growth services employment '000s (sa) year on year change '000s (sa) industry & constr, employment '000s (sa) year on year change '000s (sa)

q1 ' 18 434.9 +23.0 78.5 -1.0

source: cso lfs, seasonally adjusted by EY-DKM.

Public sector employment in the Capital registered 7.8% YoY growth in Q1 2018, with private sector growth slightly more subdued in the same period at 5.6%. Following similarly strong growth at the end of 2017, construction grew by 4,700 or 16.7% while Industry continues to act as a drag with a YoY decline of 11.2% in the year. Across the broad sectors of Public Sector, Industry and Construction employment rose by 35,300 YoY, equivalent to 5.5% annual growth.

employment by broad sector '000s (sa) 800 Max: 679,400

700 600 500 400 300 200 100 0

Q1 09

Q1 10

Q1 11

Q1 12

Private Sector Services

Q1 13

Q1 14

Public sector

Q1 15

Q1 16

Q1 17

Industry

Q1 18

Construction

source: cso lfs seasonally adjusted note: individual sector values may not sum to total due to rounding

// 5

DUBLIN ECONOMIC INDICATORS property prices exceed 2009 levels

110

average dublin rents just shy of €1,530 in q1 2018 q1 ' 18 1,527 +111

70 60

May 18

Nov 17

Nov 16

May 17

Nov 15

May 16

May 15

Nov 14

Nov 13

Dublin

May 14

Nov 12

May 13

Nov 11

May 12

Nov 10

40

May 11

50

National excl. Dublin

source: cso.

residential rents € per month €1,550

Dublin Max: €1,527

€1,450 €1,350 €1,250 €1,150 €1,050 €950 €850 €750

Dublin

Greater Dublin Area (excl. Dublin)

Q1 18

Q3 17

Q1 17

Q3 16

Q1 16

Q3 15

Q1 15

Q3 14

Q1 14

Q3 13

Q1 13

Q3 12

Q1 12

€550

Q3 11

€650 Q1 11

Residential rents in Dublin show no signs of abating as YoY growth of 7.8% was recorded in Q1 2018. On a quarterly basis rents have declined marginally in the Greater Dublin Area (GDA) by 0.7% but when compared to 12 months previous, rents have increased by 6.4% YoY. While growth rates beyond the GDA have tapered slightly since Q4 2017, YoY growth rates of 6.6% and average rents of close to €800 per annum were recorded in Q1 2018.

Q3 10

source: rtb.

Q1 10

dublin avg residential rent € per month year on year change €

80

Nov 09

Dublin’s residential property prices continue to register double digit YoY growth in May 2018. The property price index in Dublin now stands at 104.6, a 10.7% increase on the level recorded in 12 months previously. While the rate of YoY growth has moderated compared to April prices (up 13.7% YoY) it does little to alleviate the pressures in the housing market. Nationally (excl. Dublin) there was 14.1% YoY growth in prices in May 2018.

90

May 10

source: cso. note: this index includes both cash- and mortgage-based transactions.

Dublin Max 104.6

100

May 09

may ' 18 104.6 +10.7 96.3 +14.1

Q3 09

property price index dublin year on year % change property price index national excl dublin year on year % change

residential property price index (2005 = 100)

Outside GDA

source: rtb. note: gda (ex dublin) is kildare, meath and wicklow.

housing completions up 15% yoy in q1 2018

2,400

Completions Max: 1,758

1,800 1,600 1,400 1,200 1,000 800 600 400

Commencements

Q1 18

Q3 17

Q1 17

Q3 16

Q1 16

Q3 15

Q1 15

Q3 14

Q1 14

Completions source: cso.

6 //

Q3 13

0

Q1 13

200 Q3 12

New housing completions data from the CSO indicates that 1,214 houses were completed in Dublin in Q1 2018, an increase of 161 completions, or 15.3%, on Q1 2017, and represents the 11th quarter in a row of positive YoY growth in housing completions. Over that period, since Q3 2015, a total of 3,900 houses have been completed in Dublin. The level of commencements remain volatile, down 2.2% YoY and 12.6% QoQ and stands at 1,433 in Q1 2018.

2,000

Q1 12

source: cso. note: data is not seasonally adjusted

Commencements Max: 2,196

2,200

Q3 11

q1 ' 18 1,433 -32 1,214 161

Q1 11

total house commencements year on year change total house completions year on year change

dublin housing commencements & completions

DUBLIN ECONOMIC INDICATORS office rents unchanged in q2 2018

130 City Centre Max = 118.2

120

South Suburbs Max = 114

110 100 90

source: CBRE

80

Office rents in Dublin’s city centre and south suburbs stabilised in Q2 2018 with rents in both districts remaining unchanged QoQ. YoY growth rates also remain unchanged with city centre rents increasing a further 4% and rents in the south suburbs increasing by 3.6% in the 12 months since Q2 2017. Average rents in both areas are now approximately 4% higher than they were 10 years ago in Q2 2008.

70 60

City Centre

Q2 18

Q4 17

Q2 17

Q4 16

Q2 16

Q4 15

Q2 15

Q4 14

Q2 14

Q4 13

Q2 13

Q4 12

Q2 12

Q4 11

Q2 11

Q4 10

Q2 10

Q4 09

40

Q2 09

50

Q4 08

q2 '18 118.2 +4.0 114.0 +3.6

Q2 08

city centre office rent index year on year % change south suburbS office rent index year on year % change

dublin office rents index (2006 = 100)

South Suburbs

source: cbre.

vacancies in dublin's suburbs continue to decline yoy vacancy rate % dublin 2/4 year on year change % points vacancy rate % dublin suburbs year on year change % points

dublin office space vacancy rates % 30%

q2 '18 5.5 +0.5 8.6 -1.1

Dublin Suburbs Max = 25% Dublin 2/4 Max = 20.6%

25%

20%

15%

source: cbre.

public transport passenger numbers remain stable in q1 2018 public transport million trips (sa) year on year change million trips (sa)

q1 '18 53.9 +2.4

source: nta seasonally adjusted by EY-DKM.

Total passenger trips in Dublin fell marginally in Q1 2018 by 0.2%, the first QoQ decline since Q2 2016. While passenger numbers using Bus Éireann and Dublin Bus were down slightly in the quarter, the greatest increase in trips occurred on the LUAS which saw a 3.8% QoQ increase in Q1 2018, the first quarter in which the LUAS cross-city was fully operational. A total 53.9 million passengers used Dublin’s four main transport systems in Q2 2018, up 4.6% YoY.

10%

Dublin 2/4

Q2 18

Q4 17

Q2 17

Q4 16

Q2 16

Q4 15

Q2 15

Q4 14

Q2 14

Q4 13

Q2 13

Q4 12

Q2 12

Q4 11

Q2 11

Q4 10

Q2 10

0%

Q4 09

5%

Q2 09

After declining in Q1 2018, overall office vacancy in Dublin increased very slightly in Q2 2018 to 6.2% from 5.9% last quarter. In Dublin 2/4 the vacancy rate has increased on both a quarterly and annual basis, at 0.3% and 0.5% respectively.

Similarly the vacancy rate in Dublin’s suburbs rose 0.7% QoQ in Q2 2018 although a decline of 1.1% was recorded over the year from Q2 2017. The public sector accounted for 36% of suburban take-up in Q2.

Dublin Suburbs

source: cbre.

public transport million trips (sa) 60

50

40

30

20

10

0

Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18

Bus Éireann

Dublin Bus

Irish Rail

Luas

source: nta. seasonally adjusted by ey-dkm note: this series has been re-calibrated since the last issue

// 7

DUBLIN ECONOMIC INDICATORS passenger arrivals at dublin airport up in the year to march 2018 1,350

dublin hotel rates surpass 2015 peak levels

Mar 18

Jul 17

Nov 16

Mar 16

Jul 15

Nov 14

Mar 14

Jul 13

Nov 12

Mar 12

Jul 11

Nov 10

Mar 10

Jul 09

Nov 08

Max: 9.6 million tonnes

9.5 9.0 8.5 8.0 7.5 7.0 6.5

Min: 6.4 million tonnes

Q2 18

Q4 17

Q2 17

Q4 16

Q2 16

Q4 15

Q2 15

Q4 14

Q2 14

Q4 13

Q2 13

Q4 12

Q2 12

5.5

Q4 11

6.0

source: dublin port. seasonally adjusted by ey-dkm. note: this series has been re-calibrated since the last issue.

dublin hotel average daily rates (sa) €150

€130

€120

€110

source: str. seasonally adjusted by EY-DKM. note: this series has been re-calibrated since the last issue.

Jun 18

Apr 18

Feb 18

Oct 17

Dec 17

Aug 17

Jun 17

Apr 17

Feb 17

Dec 16

Oct 16

€90

Aug 16

€100

Apr 16

Average Daily Rates (ADR) for hotel accommodation in Dublin reached a new high in May 2018 at €145, a 9.5% YoY increase and the strongest YoY increase in ADR since December 2016.

The daily rate has remained unchanged in June 2018. A 41% increase in ADR over the past three years is likely linked to modest growth in room supply which increased by 6.3% in the same period. Fáilte Ireland indicate that approximately 5,400 Dublin hotel rooms are in the pipeline out to 2020.

Maximum: €145

€140

Jun 16

jun ' 18 83.5% +0.3 105.5 1.3%

source: str global. seasonally adjusted by ey-dkm. note: this series has been re-calibrated since the last issue.

8 //

dublin port tonnage million tonnes (sa) 10.0

Feb 16

year on year change %

source: cso. seasonally adjusted by EY-DKM. Note: this series has been re-calibrated since the last issue.

Dec 15

index of hotel room supply (sa, july 2013=100)

550

Icelandic Ash Cloud

Oct 15

hotel occupancy rate % (sa) year on year change %age point

Severe Winter Weather

650

Q2 11

Total cargo handled at Dublin Port exceeded 9.6 million tonnes (seasonally adjusted) in Q2 2018 for the first time in the 10 year period analysed. Just over 9.6 million tonnes of cargo was handled in the port in Q2 2018, equivalent to a 7.0% YoY increase. The level of imports and exports through the Port continues on a positive trend with YoY growth of 6.4% and 7.8% respectively.

750

Q4 10

Source: Dublin Port. Seasonally Adjusted by EY-DKM. Note: imports and exports may not add to total throughput due to seasonal adjustment and rounding.

850

Jun 15

dublin port exports million tonnes (sa) yoy change million tonnes (sa) dublin port imports million tonnes (sa) yoy change million tonnes (sa)

q2 ' 18 3.94 0.28 5.66 0.34

950

Q2 10

record throughput at dublin port in q2 2018

1,050

Q4 09

Passenger arrivals at Dublin Airport dipped slightly in March 2018 with 1.217 million (SA) passengers compared to February figures of 1.218 million, representing a decline of 0.07% in the month. Despite the marginal decline recorded in the month, there was an increase of 16,500 passengers compared to March 2017. Passenger numbers may be given a boost in the second half of the year with the introduction of Dublin’s first direct services to Beijing and Hong Kong in June 2018.

1,150

Q2 09

source: cso, seasonally adjusted by ey-dkm. note: this series has been re-calibrated since the last issue

Max: 1,251

1,250

Aug 15

total arrivals '000s (SA) year on year change '000s (sa)

mar '18 1,217.4 +16.5

dublin airport arrivals '000s (sa)

A u g u st 2 0 1 8

DUBLIN Mastercard SpendingPulse

TM

Dublin Mastercard SpendingPulse Delivering Unique Insights for Consumer and Tourism Spend.

KEY HIGHLIGHTS YEAR-ON-YEAR Q2 2018*

+5.2%

+16.2%

OVERALL SALES

+7.6% NECESSITIES

OVERSEAS TOURISM SPEND

+7.0% DISCRETIONARY

+9.1% HOUSEHOLD GOODS

+11.9% ECOMMERCE

+6.4% ENTERTAINMENT

*RETAIL SALES VALUE (SA)

TM

DUBLIN Mastercard SpendingPulse

| August 2018

TOTAL RETAIL SPEND IN DUBLIN OUTPERFORMS THOSE NATIONALLY TOTAL RETAIL SALES INDEX (SA)

117

120

+5.2% YoY

115

115

+4.5% YoY

110 105

DUBLIN

Q2 18

Q1 18

Q4 17

Q3 17

Q2 17

Q1 17

Q4 16

Q3 16

Q2 16

Q1 16

Q4 15

Q3 15

Q2 15

Q1 15

Q4 14

Q3 14

Q2 14

95

Q1 14

100

IRELAND

Consumer spending in the Dublin economy registered in excess of 5% YoY growth in the first two quarters of 2018. Overall expenditure increased by 5.2% YoY and by 1.3% QoQ in Q2 2018. Total sales in Dublin are now 17.1% higher than Q1 2014 levels, reflecting a strong upward trend in a strengthening Dublin Economy.

Overall the retail environment in Ireland remains solid with 4.5% growth for retail sales across the country. Dublin‘s performance was particularly strong at a 5.2% increase over Q2 2017. On the tourism side, some of the most exciting growth in tourism spend is coming from the U.S and China.

The only area of struggling growth is from the UK, with negative growth continuing into 2018.

Nationally (including Dublin), growth in total sales were not as strong as in Dublin but continue to maintain a strong upward trend in Q2 2018 with YoY growth of 4.5%. On a quarterly basis, expenditure nationally (including Dublin) registered growth of 1.2%. At both a national and Dublin level, both YoY and QoQ growth rates in Q2 2018 were at their strongest levels since the series began in Q1 2014.

Michael McNamara

GLOBAL HEAD OF SPENDING PULSE, MASTERCARD

DUBLIN RETAIL SALES VALUE INDEX (SA)

+5.19%

117.1

+1.3%

YOY GROWTH IN DUBLIN SALES INDEX

DUBLIN SALES INDEX VALUE

QOQ GROWTH IN DUBLIN SALES INDEX

Q2 2018

100 = Q1 2014

QOQ

METHODOLOGY A macro-economic indicator, SpendingPulse™ reports on national and Dublin retail sales and is based on aggregate sales activity in the Mastercard payments network, coupled with estimates for all other payment forms, including cash and cheque. This information has been grossed up to present an estimate of the total retail sales of retail businesses in Ireland and Dublin to both residents and tourists. Data is seasonally adjusted but is not adjusted for inflation. Mastercard SpendingPulse™ does not represent Mastercard financial performance. SpendingPulse™ is provided by Mastercard Advisors, the professional services arm of Mastercard International Incorporated. See www.dublineconomy.ie for more info on methodology.

2

TM

DUBLIN Mastercard SpendingPulse

SPENDINGPULSE: SELECTED SUB-SECTORS

METHOD: ECOMMERCE

171

180

+11.9% YoY

170

Dublin Consumer Spending in Q2 2018 was positively influenced by growth in each of the four main sectors covered in the Mastercard SpendingPulse. Each category of spending registered in excess of 5% YoY growth in the quarter. Expenditure via eCommerce increased by 11.9% YoY, the lowest YoY increase since Q1 2017.

160 150

154

140

+14.1% YoY

130 120 110

Growth in the sale of household goods was particularly high at 9.0% nationally (including Dublin) and 9.1% in Dublin, signifying continued confidence and willingness by consumers to spend on significant household items. Nationally, retail sales via eCommerce were equally strong at 14.1% however the overall level continues to be eclipsed by that observed in Dublin.

100

Q2 18

Q1 18

Q4 17

Q3 17

Q2 17

Q1 17

Q4 16

Q3 16

Q2 16

Q1 16

Q4 15

Q3 15

Q2 15

Q1 15

Q4 14

Q3 14

Q2 14

Q1 14

90

IRELAND

| August 2018

DUBLIN

Non store Retailers including Electronic Shopping and Mail-Order Houses, Direct Selling Establishments.

RETAIL CATEGORY: DISCRETIONARY 125

RETAIL CATEGORY: NECESSITIES 125

120 +7.0% YoY

120

120

+7.6% YoY

120

115

115

116

+3.4% YoY

110

IRELAND

112

DUBLIN

IRELAND

Discretionary Retail: Department Stores and Clothing Stores.

Q2 18

Q1 18

Q4 17

Q3 17

Q2 17

Q1 17

Q4 16

DUBLIN

Grocery: all food and beverage stores.

RETAIL CATEGORY: HOUSEHOLD GOODS

RETAIL CATEGORY: ENTERTAINMENT

137

140

Q3 16

Q2 16

Q1 16

Q4 15

Q3 15

Q2 15

Q1 15

Q4 14

Q3 14

+2.5% YoY

Q1 14

Q2 18

Q1 18

Q4 17

Q3 17

Q2 17

Q1 17

Q4 16

Q3 16

Q2 16

Q1 16

Q4 15

Q3 15

Q2 15

95

Q1 15

95 Q4 14

100

Q3 14

100

Q2 14

105

Q1 14

105

Q2 14

110

149

160

+6.4% YoY

+9.1% YoY

150

130

140

128 +3.2%

120

142

130

YoY

+9.0% YoY

120

110

110 100

100

IRELAND

DUBLIN

3

Q2 18

Q1 18

Q4 17

Q3 17

Q2 17

Q1 17

DUBLIN

Household furniture, electronics and hardware.

Hotels, restaurants and bars.

Q4 16

Q3 16

Q2 16

Q1 16

Q4 15

Q3 15

Q2 15

Q1 15

Q4 14

Q3 14

Q1 14

Q2 18

Q1 18

Q4 17

Q3 17

Q2 17

Q1 17

Q4 16

Q3 16

Q2 16

Q1 16

Q4 15

Q3 15

Q2 15

Q1 15

Q4 14

Q3 14

Q2 14

Q1 14

IRELAND

Q2 14

90

90

TM

DUBLIN Mastercard SpendingPulse

| August 2018

TOURISM RETAIL SPEND INDEX: US AND FRENCH MARKETS CONTINUE TO DRIVE GROWTH Tourist expenditure in the Dublin economy grew by 16.2% YoY in Q2 2018. Growth in the quarter was predominantly driven by growth in the US market of 16.8% and 15.2% in the French market (seasonally adjusted) With YoY growth in the Chinese market of 14.1% this marks the second quarter of positive growth YoY growth following seven consecutive quarters of negative YoY growth. Meanwhile, the UK market is the only market of the five included in the analysis that recorded a negative YoY growth rate in Q2 2018. This represents the fifth quarter in a row where negative YoY growth has been recorded. Notably, the rate of decline is also increasing, both YoY and QoQ. For example, in Q2 2018 spending by UK tourists fell 4.7% YoY and 1.6% QoQ compared to Q2 2017 when spending dropped 0.6% both YoY and QoQ. This is in spite of a recovery the number of UK tourists traveling to Ireland in the year to May 2018, up approximately 7% (Fรกilte Ireland).

Similar trends are observed nationally (including Dublin) though the rate of decline in spending by UK tourists is lower than that recorded in Dublin. Following no growth in Q3 2017, there have been two consecutive quarters of negative YoY growth nationally (including Dublin) in UK tourist spending. Similarly, on a quarterly basis, the rate of expenditure by UK tourists has been on the decline since Q3 2017.

Overall, growth of 11% YoY in tourist spending was recorded nationally (including Dublin) in Q2 2018, slightly lower than in Dublin. The US and French markets are the key drivers of this growth, growing at 15.5% and 18.4% respectively. Both the German and Chinese markets continue to perform well with two consecutive quarters of double digit YoY growth. In the Chinese market tourism spending grew 4.4% QoQ in Q2 2018 representing a slowdown from the 10.1% QoQ growth recorded in Q1 2018.

DUBLIN AND IRELAND TOURIST SPEND BY ORIGIN - Q2 2018 (SA) OVERALL

+11.0% +16.2%

-1.3% -4.7%

+15.5% +16.8%

+15.3% +4.8%

+18.4% +15.2%

+12.6% +14.1%

YOY OVERALL INCREASE IN TOURSIM SPEND IN IRELAND

YOY CHANGE IN SPENDING IN IRELAND

YOY OVERALL INCREASE IN TOURSIM SPEND IN DUBLIN

YOY CHANGE IN SPENDING IN IRELAND

YOY CHANGE IN SPENDING IN DUBLIN

YOY CHANGE IN SPENDING IN IRELAND

YOY CHANGE IN SPENDING IN DUBLIN

YOY CHANGE IN SPENDING IN DUBLIN

IRELAND TOURISM SPEND SALES INDEX (SA)

YOY CHANGE IN SPENDING IN IRELAND

YOY CHANGE IN SPENDING IN DUBLIN

Q1 2014 = 100

200

190

190

180

180

158.2

170

YOY CHANGE IN SPENDING IN DUBLIN

DUBLIN TOURISM SPEND SALES INDEX (SA)

Q1 2014 = 100

200

YOY CHANGE IN SPENDING IN IRELAND

171.0

170

160

160

150

150

140

140

130

130

120

120

110

110 100

100 All

UK

USA

Germany

France

All

China

UK

USA

Germany

France

Q2 2015

Q2 2016

Q2 2015

Q2 2016

Q2 2017

Q2 2018

Q2 2017

Q2 2018

4

China

DUBLIN’S INTERNATIONAL RANKINGS

MIXED PERFORMANCE IN DUBLIN'S RANKINGS

Internationally published benchmarks are a useful means of measuring a city’s performance relative to its peers, and recent indicators for Dublin confirm the city’s strong showing across a range of dimensions (see table below).

In Mercer’s 24th annual Cost of Living Survey Dublin has moved up 34 places to from 66th to 32nd position, overtaking Paris to make it the most expensive city in the Eurozone to live in for expatriate employees.

Mercer Ireland Consultant, Noel O’Connor commented: “The survey identifies cost pressures on expatriate rental accommodation in Dublin as the key driver of this [increase] and this in turn reflects the growth of the economy with continuing high levels of foreign direct investment.”

Dublin meanwhile is ranked 6th for commercial real estate investment in Savills 2018 ‘Dynamic Cities’ index. The index, which ranks 130 European cities across categories of infrastructure, inspiration, inclusion, interconnection, investment and innovation, cited Dublin’s continuing emergence as a financial hub as the key reason for the observed improvement from its 7th position ranking in 2017.

Dublin’s ranking in the IESE Cities in Motion Index 2018 remains unchanged in 30th position. The city ranks high in terms of the economy and technology but aspects such as mobility and transportation act as a drag on the overall ranking. New York, London and Paris take the top three positions, respectively.

Trinity College Dublin’s Executive MBA (EMBA) is listed 44th in The Economist’s

global ranking of EMBA programmes, a 15 place improvement over the 2017 ranking.

UCD’s Michael Smurfit Graduate School of Business is the only other Irish programme listed, in 59th position.

Despite this, the annual QS World University Ranking for 2018 no longer has an Irish university in the Top 100 ranking. Trinity College – previously the only university in the country in the Top 100 – has slipped to 104th position from 88th, based on indicators such as staff-to-student ratio, academic reputation and employer reputation.

Ireland has fallen six places in the 2018 IMD World Competitiveness Ranking, leaving it now outside the Top 10. The ranking captures how competitive a country is based on indicators such as employment, trade and business perception.

d u b l i n ' s l at e s t i n t e r n at i o n a l r a n k i n g s SOURCE

Savills ‘Dynamic Cities’ Ranking

BENCHMARK CRITERIA Infrastructure, inclusion, interconnection, investment and innovation

YEAR

RANKING

CHANGE‡

2018

6

▲

The Economist Executive MBA Ranking

Personal development, educational experience and career development

2018

44*

▲

fDi Intelligence Reinvesting Ranking 2018

Attracting expansion and co-location projects

2018

4

-

2018

30

-

2018

7

-

2018

12

▼ ▼ ▼ ▲

IMD World Competitiveness Yearbook Rankings (Ireland)

Governance, urban planning, technology, the environment, international outreach, social cohesion, human capital, mobility and transportation, and economy Regulatory, market and business/labour landscape, external and internal openness, education and access to growth opportunities and, sustainability and lifestyle Economic performance, government efficiency, business efficiency & infrastructure

Mercer 2018 Cost of Living Survey

Cost of consumer goods and services

2018

32

Mercer 2018 Quality of Living Survey

Environmental/socio-economic

2018

34

QS World University Rankings

University quality

2018

104*

2018

8

2018

19

2018

2

▼ ▲

2018

31

▼

IESE Cities in Motion Index

Global Talent Competitiveness Index

World Economic Forum Inclusive Development Index The Economist Intelligence Unit Worldwide Cost of Living 2018

Growth and development, inclusion, intergenerational equity and sustainability Price comparison across 160 products and services

fDi Intelligence Global Cities and Regions of the Future Socio-economic indicators Global Financial Centres Index (GFCI)

Business environment, financial sector development, infrastructure, human capital, reputational & general factors; online survey

* tcd. ‡change on previous publication of the relevant benchmark. an upward-pointing arrow denotes an improvement.

// 9

KBC / ESRI CONSUMER SENTIMENT INDEX consumer sentiment slips in q2

Dublin sentiment overall 180

Q2 18

Q4 17

Q2 17

Q4 16

Q2 16

Q4 15

Q2 15

Q4 14

Q2 14

Q4 13

Q2 13

Q4 12

National excl. Dublin

Base 2003 = 100 National excl Dublin Max 133.9

128.1 +0.6 -5.8

120

Dublin Max 125.2

110 100 90 80 70

Dublin

Q2 18

Q4 17

Q2 17

Q4 16

Q2 16

Q4 15

Q2 15

Q4 14

Q2 14

Q4 13

Q2 13

Q4 12

Q2 12

Q4 11

Q2 11

Q4 10

Q2 10

Q4 09

50

Q2 09

60

National excl. Dublin

Dublin expectationS 230

Dublin Max 211.1

210

National excl Dublin Max 200.6

190 170 150 130 110 90 70

Dublin

About The KBC/ESRI sentiment index is based on responses from consumers about general economic conditions and their household finances. A more detailed commentary is available at www.kbc.ie/blog

National excl. Dublin

Q2 18

Q4 17

Q2 17

Q4 16

Q2 16

Q4 15

Q2 15

Q4 14

Q2 14

Q4 13

Q2 13

Q4 12

Q2 12

Q4 11

Q2 11

Q4 10

30

Q2 10

50 Q4 09

191.3 +5.4 -7.8

Base 2003 = 100

Q2 09

National

dublin excl. dublin

For Q2 2018, both regions saw lower YoY improvements in consumer expectations, with expected gains for the general economy fueling Dublin's confidence while expectations of jobs growth grew outside of Dublin. Between quarters, attitudes weakened both in terms of expected personal finance and macroeconomic performance. Dublin experienced moderate upward revisions to personal finances while reducing expectations for the wider economy. Outside Dublin, both personal and wider economic forecasts saw modest downward revisions.

10 //

Q2 12

Q4 11

Q2 11

Q4 10

Q2 10

Q4 09

Dublin

130

114.8 +0.6 -3.1

197.0 +7.1 -3.7

40

National excl. dublin

q2 consumer expectations weaken q1 2018 year on year change quarter on quarter change

60

140

The Index of Current Conditions in the Dublin region fell by 3.1 index points QoQ in Q2 2018 relative to outside Dublin falling by 5.8 index points. This led to a contraction in the spread between the two regions, though those outside of Dublin generally reflect greater levels of satisfaction. Similarly to the overall index, regions outside of Dublin saw a greater decline due to increased dissatisfaction with current financial situations. On an annual basis, conditions have only slightly improved in both regions.

consumer expectations

80

Q4 08

quarter on quarter change

100

Q2 08

q1 2018 year on year change

dublin

120

Dublin current conditions

slowdown in current conditions in q2 current conditions

140

Q2 09

YoY, the overall Dublin Consumer Sentiment Index increased by 3.7 index points, rising by 3.1 index points outside of Dublin.

Although sentiment remains strongly positive, the recent quarterly fall across regions signals a shake to confidence. Poorer outlooks for the general economy and unemployment combined with a lesser appetite for major household purchases were the main drivers across both regions. However, while respondents outside of Dublin reported deteriorations in financial circumstances, those in Dublin signalled a modest improvement.

160

Q4 08

160.4 +3.1 -6.8

Q2 08

154.2 +3.7 -3.4

National excl Dublin Max 167.2 Dublin Max 159.8

Q4 08

q2 2018 year on year change quarter on quarter change

dublin

Q2 08

consumer sentiment

National excl. dublin

Base 2003 = 100

DUBLIN IHS MARKIT PMI dublin output growth accelerates in q2

overall ihs markit pmi (sa) 65

dublin

national excl. dublin

60

q2 2018

58.5

58.3

55

year on year change

-0.9 +0.6

+1.0 -0.3

50

overall ihs markit pmi

quarter on quarter change

increasing rate of growth ▲

50 = no change

45

new orders continue to rise sharply

40 35 30

65 60

q2 2018

58.8

58.1

55

year on year change

0.0 -1.2

+0.4 -0.2

Q2 18

Q2 17

Q2 16

Q2 15

Q2 14

Q2 13

Q2 12

50 45 40 35 30

employment rises at marked, but slower pace

Q2 18

Q2 17

Q2 16

Q2 15

Q2 14

Q2 13

Q2 12

Q2 11

Q2 10

Q2 09

Q2 08

Q2 07

Q2 06

Q2 05

Q2 04

Q2 03

increasing rate of contraction ▼ Q2 02

25

Dublin

National excl. Dublin

overall pmi employment growth (sa) 65

dublin

national excl. dublin

60

q2 2018

56.9

56.0

55

year on year change

+2.1 -1.6

+0.7 -1.2

50

quarter on quarter change

Q2 11

increasing rate of growth ▲

50 = no change

Q2 01

New orders rose again during Q2, continuing the trend seen since the final three months of 2012. The rate of growth remained sharp despite easing marginally from the previous month, with the latest increase well above the series average. The Rest of Ireland also saw new business rise at a strong pace in the second quarter, but at a slightly weaker rate than in Dublin.

employment growth

Q2 10

Q2 09

Q2 07

Q2 06

Q2 05

Q2 08

National excl. Dublin

overall pmi new orders (sa)

national excl. dublin

quarter on quarter change

Q2 04

Dublin

dublin

new orders

Q2 03

increasing rate of contraction ▼ Q2 02

25

Q2 01

Output continued to rise sharply in the Dublin private sector during the second quarter of 2018, extending the current sequence of growth to 23 quarters. The Dublin PMI ticked up to 58.5 in Q2 from 58.0 in the opening quarter of the year.

The rise in activity in Dublin was broadly in line with that recorded across the Rest of Ireland. All three monitored sectors saw output increase sharply, with growth led by construction.

The manufacturing sector saw the rate of expansion rebound following weather-related disruption in Q1.

increasing rate of growth ▲

50 = no change

45 40 35 30

Dublin

Q2 18

Q2 17

Q2 16

Q2 15

Q2 14

Q2 13

Q2 12

Q2 11

Q2 10

Q2 09

Q2 08

Q2 07

Q2 06

Q2 05

Q2 04

Q2 03

Q2 02

increasing rate of contraction ▼ 25

Q2 01

Dublin companies continued to increase their staffing levels during the second quarter of the year, extending the current period of job creation to 23 quarters. The pace at which employment rose eased from the previous quarter, but remained marked. The Rest of Ireland also posted a weaker increase in staffing levels in Q2, and one that was slower than that seen in Dublin.

National excl. Dublin

about The Dublin Purchasing Managers’ Index® (PMI) series is produced by IHS Markit Economics, an independent research company that produces highly-regarded surveys of business conditions in nations around the world www.markit.com // 11

SANDYFORD BUSINESS DISTRICT

SANDYFORD BUSINESS DISTRICT

BY SHARON SCALLY DIRECTOR/CHAIRPERSON SANDYFORD BUSINESS IMPROVEMENT DISTRICT CLG

Driving innovation in east Dublin’s global business quarter and aiming to become the Sandyford Innovation District by 2021 Sandyford Business District (SBD) comprises four Business Parks (Central Park, Sandyford Business Park, South County Business Park and Stillorgan Business Park) and is bordered by the Leopardstown Racecourse & Naomh Olaf GAA Grounds. With its readily accessible location, highly educated workforce and proven track record for key industry sectors, the SBD is a prime location for SMEs and multinational companies alike.

Located in the east of the Dublin region, Sandyford Business District is a vibrant mix of established communities, young families and business, with a total workforce of approx. 25,000 in 1,000 companies. It is well serviced by a modern light rail system (LUAS) to the City and by the M50 road network to the rest of the country.

This accessibility and strategic positioning has been a key factor in attracting a large number of high profile businesses including; Microsoft, Google, Sage, Vodafone, Mastercard, Salesforce, Bank of America Merrill Lynch, SSE Airtricity, and Ardagh Group.

Although currently well provided for, imminent development plans include 600 new apartments and the new Nord Anglia International School for 800 students opening in September 2018 which further strengthens the fabric of the community for working families and its attractiveness to employers.

THE SANDYFORD BUSINESS IMPROVEMENT DISTRICT COMPANY Business Improvement Districts (BIDs) involve local businesses, forming a company that is funded directly by them and charged with identifying and implementing key projects which aim to make material improvements for those working and living in an area.

In October 2016, Sandyford BID CLG (SBID) was established (www.sandyford.ie).

12 //

of the major “ Onebenefits of the Sandyford Business Improvement District (BID) to its members is that they can utilise the company to engage with the Council on their behalf and identify areas of improvement within the district.”

The Smart District “ Initiative has helped

SBID is made up of a highly motivated Board of Directors, drawn from the business community, and representatives of Dún LaoghaireRathdown County Council (DLRCoCo) with over 60 companies participating on its six Task Forces to develop solutions around key areas, namely: Business Attraction, Infrastructure, Marketing and Events, Smart Innovation, Saving & Benefits & Wellbeing.

No company is successful without a good team behind it and SBID is led by its new District Director Fiona Fitzpatrick and supported by an Office Manager, Event Manager and Innovation Champion to assist with growing and promoting Sandyford as a smart destination to live, work and invest.

Collaboration and networking are key elements of a successful Business Improvement District and members are invited to a broad range of networking and signature events which include; the Sandyford Business District Awards, Sandyford Spirit 5k run & Wellness week, €10 million breakfast, Sandyford Innovation Forum, Sandyford Summer BBQ along with monthly networking meetups. These events are critical to developing a sense of ownership for participants in the district.

SANDYFORD SMART DISTRICT Sandyford was officially launched as a “SMART District” by DLRCoCo in May 2018. To advance the level of collaboration, innovation and specialist talent development, SMART Sandyford manages a series of morning meet-ups and lunchtime briefings, inviting key speakers from multinationals, SMEs and start-ups.

The district is also very engaged on SMART Travel initiatives in collaboration with DLRCoCo. Significant investment will made to promote smarter travel in cycle routes, improved pedestrian routes and crossings. Traffic management measures will also be designed to manage traffic flows in the district. (http://www.sandyfordsmartertravel.ie) Working with DLRCoCo, substantial success has been achieved with an investment of over €150,000 in landscaping and herbaceous boarders within the district including a pocket park on Bracken Road. Looking forward, a public park with amenities for the district will commence in the coming months. Further improvements to roads and infrastructure will commence in October and plans are well underway for a new signage scheme which will bring uniformity and identity to the district.

to focus our resources specifically on the challenges facing the area and has assisted in developing innovative solutions to meet the needs of the people and business in Sandyford.”

Philomena Poole, Chief Executive, DLCCo.Co.

THE MISSION OF SANDYFORD BUSINESS DISTRICT IS TO CREATE AND PROMOTE THE AREA AS:  A world-class destination in which to work and reside.  A vibrant community of businesses and residents with a unique identity.  A place where living, working, shopping and spending leisure time is attractive, easy and positive.

THE SANDYFORD INNOVATION DISTRICT: Seeking to build on the success of its experience with SBID and the Smart District initiative, the team is planning on developing a Sandyford Innovation District in the coming years. Innovation districts constitute best practice in terms of placemaking and clusters, combining the best of entrepreneurs, educational institutions, startups, schools and mixed-use development and public infrastructure all connected by sustainable transit, like bike share and trams, powered by clean energy and wired for digital technology. This combination of collaboration, innovation and entrepreneurship makes Sandyford one to watch and a smart place to invest.

// 13

SPECIAL REPORT

DUBLIN BAY BIOSPHERE TURNS UNESCO DESIGNATION INTO AN OPPORTUNITY FOR SUSTAINABLE BUSINESS

BY LES MOORE HEAD OF PARKS SERVICES DUBLIN CITY COUNCIL AND CHAIR OF THE DUBLIN BAY BIOSPHERE PARTNERSHIP

International recognition for Dublin Bay Biosphere offers a way to promote Dublin’s natural heritage together with the growth of local sustainable tourism.

On the 24th June 2015, the then Minister for Jobs, Enterprise and Innovation Richard Bruton TD, welcomed the announcement that Dublin Bay had been awarded by UNESCO the designation of Biosphere reserve, in recognition of its unique ecological status and cultural heritage. Minister Bruton stated “UNESCO’s decision to award Biosphere status recognises the international importance of the biodiversity and habitats in Dublin Bay." The UNESCO recognition prises the successful partnership established between Dublin City Council, Dún LaoghaireRathdown County Council, Fingal County Council, Dublin Port Company and The Department of Culture, Heritage and the Gaeltacht. Failte Ireland are also now a partner as the UNESCO recognition of Dublin Bay dovetails with their strategy to reposition Dublin as a must visit destination that rivals other European capitals and indeed, due to its proximity to sea and countryside, can offer more than most.

“

I believe that this international designation of Dublin Bay will considerably enhance the potential to develop the green tourism market in a way which creates sustainable employment without damaging natural resources or the cultural integrity of the bay.”

Richard Bruton Minister for Education and Skills

14 //

While biospheres are recognised for their ecological diversity, they are managed to promote a balanced relationship between people and nature and this goal is fulfilled through conservation, learning and development initiatives. Biosphere Discovery Tour Guides delivered tours to almost 11,800 passengers in 2017, including a Spring programme of school tours. This ecotourism initiative provides employment and enables visitors and locals alike to experience Dublin Bay and its fascinating wildlife and cultural heritage firsthand. As a unique hallmark, Dublin Bay Biosphere Reserve encompasses not just the marine but also terrestrial areas, opening a further range of opportunities for the local green and sustainable tourism market.

Around Dublin Bay there is in fact a necklace of villages which invite visitors to enjoy the local heritage, packed with great restaurants and shops. Each affords wonderfully evocative sea views and opportunities for a long walk or cycle to lift the spirits.

Whether it’s rock-climbing in Dalkey, sea-kayaking in Howth, kite surfing in Dollymount or learning to sail in Dun Laoghaire, there’s something for all adventure seekers in Dublin’s coastal villages.

Dublin Bay Biosphere in association with Local Enterprise Offices will be seeking to develop a sustainable business charter for local business’s which support the ideals of the Biosphere project. This represents an incredible opportunity for businesses to engage with new customers and to showcase sustainable, responsibly sourced and ethical products and services which enhance this unique resource.

Dublin Bay is part of a global network of 651 Biosphere Reserves in 120 countries. In April 2019, the European and North American networks will meet in Dublin for their biennial conference to strengthen the network, to share information on best practice and to inspire and empower people to implement the principles of UNESCO and its Biosphere programme.

Further information about Dublin Bay and recreational activities in Dublin’s coastal villages is available on www.dublinbaybiosphere.ie and www.visitdublin.com

ECONOMIC SCORECARD

dublin: economic scorecard aug 2018 Note: These "petrol gauge" charts present the performance of the particular indicator relative to a range of performances from most positive (green) to least positive (red). Each gauge presents the latest value compared to the peak value and the trough value over the last decade (except for public transport trips which cover the past 5 years and housing completions which cover the past 6 years). The Commercial Property gauges are red at the high and low extremes, in recognition of the undesirability of rents or vacancy rates that are either too high or too low.

economy ihs markit business pmi q2 2018

46

51

8

40

57

58.5

34

unemployment rate q1 2018

100

10

7

63

kbc/esri consumer sentiment q2 2018

70

12

5.7

5

3 month moving average (sa)

120

13

53

% (sa)

140

154

160

index (2003 = 100) (sa)

transport airport arrivals mar 2018

870

1,000

740

7.7 1,120

1,217

615

seaport cargo q2 2018

1,251

000's/month (sa)

public transport trips q1 2018

8.4

7.1

9.0

9.6

6.5

49.3

47.0 44.6

42.2

million tonnes/quarter (sa)

51.7

53.9

million trips/quarter (sa)

residential property average residential rents q1 2018

1,200

1,310

1,090

961

residential property price index may 2018

1,527

69

113

104

55

â‚Ź/month

1.100

800

99

84 1,420

housing completions q1 2018

128

400

100

index 2005 = 100

1,400

1.214

1,760

units/month

commercial property dublin city centre office rent q2 2018

460

540

380

296

dublin 2/4 office vacancy rate q2 2018

700 â‚Ź/sq.m.

700

10

5

25

5.5 %

18

15

20

15 620

dublin suburbs office vacancy rate q2 2018

30

11

8

22

8.6

25

%

sources: cso, except consumer sentiment kbc/esri; pmi markit; seaport cargo dublin port; public transport nta; residential rents prtb; commercial property cbre research

// 15

THE DUBLIN BAY BIOSPHERE WORKING TOGETHER TO PROMOTE A BALANCE BETWEEN PEOPLE AND NATURE DUBLINBAYBIOSPHERE.IE