Dublin Economic Monitor - Issue 38 | September 2024
Highlights
Employment levels in Dublin reached a new peak of 826,600 (SA) residents employed in Q2 2024, as the county’s unemployment rate remained close to lows.
Retail spending in the Dublin economy increased by 0.7% QoQ in Q2 2024, continuing a sequence of QoQ increases stretching back four years.
Housing commencements across Dublin increased by 74% QoQ, and more than doubled YoY, to reach a new peak of over 7,500 units in Q2 2024.
Business activity in the Capital softened in Q2 2024, with growth driven by the services sector and an increase in construction activity while the manufacturing sector weakened.
Passenger journeys on Dublin’s public transport network continued to expand to 70.7 million journeys (SA) in Q2 2024, representing a 7.6% QoQ increase.
Dublin's hotel market recorded a strong early summer 2024 period with the supply of hotel rooms reaching peak levels and occupancy rates of 86.9% in July.
Welcome to the September 2024 issue of the dublin economic monitor
The Dublin Economic Monitor is a joint initiative on behalf of the four Dublin Local Authorities, and is designed to be of interest to those living and doing business in Dublin or considering locating here. The report is produced by Grant Thornton with inputs from S&P Global and MasterCard.
There are two special feature articles this quarter, both of which centre on AI and its current effect on the Dublin economy. The first is from Mark Kelly, Founder of AI Ireland and focusses on the impact of AI on Dublin’s economy with regards to jobs, starts ups, doing business and future impacts. The second article is by Leon Harding, Enterprise and Engagement Manager of Dublin and Dún Laoghaire Education and Training Board, which focuses on educational support for businesses in Dublin.
The Monitor is divided into the following themes for Dublin:
Economy
Business Developments
Retail Hospitality
Labour Market International Rankings
Housing Transport & Travel
For more data and insights see: www.dublineconomy.ie
The next edition will be published in December 2024.
www.dublineconomy.ie
@DCCEconDev
Cover Photo: Innovation Centre, Tallaght courtesy of Ben Ryan
Budget season, and (almost) all is well
Budget season is upon us a bit sooner than expected. October 1st will confirm how the government plans to allocate spending in what will be the final budget of this mandate. As is so often the case, we will know a lot of what will be announced in the Budget well ahead of time. There is already talk of a significant cost of living package to support families as the effects of the inflation crisis continue to linger. An overall budgetary package of €8.3 billion will be provided for and will include additional expenditure on childcare and healthcare.
Ahead of Budget 2025, a key phase of the budget cycle is the Summer Economic Statement which provides a status check on where the economy is, and what the fiscal situation is. The Summer Economic Statement notes that Budget 2025 is being prepared against a backdrop of relative stability. Inflation in both the euro area and in Ireland has eased back towards target, with the stance of monetary policy responding as a result. Households are starting to feel the benefits of the disinflation process, with real wages increasing again. As a result, the Summer Economic Statement expects that the economy, measured in Modified Domestic Demand, will grow by 1.9%, with a modest acceleration – to 2.3% – in 2025. Beyond that, a growth rate of 2.9% is expected.
population also results in labour supply issues. Across the other ‘Ds’, global conflict has worsened over the past year and more protectionist trade policies are at play in Ireland’s major trading partners. Decarbonisation needs to ramp up dramatically to reach our targets, creating both opportunity and challenge. With respect to digitalisation, there are two articles on AI in this edition of the DEM that speak to the opportunities this can bring. Suffice to note, it could fundamentally change how the economy operates, and requires close attention.
Expensive times lie ahead and so exchequer returns this year will bring relief – income tax, VAT and business taxes delivered almost €8 billion in July to create a surplus of €3.4 billion for the year to date. The strong labour market and consumer spending played a part in this. €2.9 billion came in via income tax in July, 7% higher than a year earlier as wage growth increased tax paid by employees. VAT also increased by close to 10%, reflecting a more engaged consumer. In the year to date up to the end of July, the government has collected €10 billion more in taxes than a year ago. Peter Vale, tax partner at Grant Thornton voiced concern about the reliance on corporation taxes, especially in a changing economic and political environment. “A recession in the US or a broader global economic downturn would almost certainly impact on corporate tax receipts, in particular given our reliance on such a small number of multinationals. While a recession still appears unlikely, corporate tax receipts in the key month of November would be impacted in such an event.”
At the time of writing, stock markets around the world have been declining off the back of weaker than expected US job growth numbers and mounting fears of a US recession. The more likely scenario is that the US economy will slow down in the second half of 2024 rather than slip into recession. This would not be entirely unexpected given the strength of performance in 2023.
While recent budgets may have felt more geared towards the immediate challenges facing the economy, there remains a firm focus on future fundamental challenges. These challenges – the “4Ds” of demographic change, decarbonisation, digitalisation, and de-globalisation –are each going to have a significant effect on the Irish economy, and Irish finances. An aging population will increase demands on health and other services to the extent that an additional €16 billion per annum on age-related expenditure will be required by 2050 just to maintain current service levels. Bear in mind an aging
One final note of caution in an otherwise positive outlook relates to unemployment figures. Nationally, at the time of writing, unemployment has edged up for the fifth month in a row. We have to go back to December 2021 to the last time there were this many people unemployed. Accepting that employment numbers in Dublin have climbed to new peaks in Q2, with over 16,000 more people unemployed nationally than one year ago, we are less able to fall back on the comfort blanket of recent years that the labour market is powering ahead despite headwinds. There is a trend forming here and the government’s budget planning should be increasingly mindful of headwinds in the labour market and plan accordingly.
Business Developments
Technology to the Fore in Latest Dublin Business Developments
Dublin Leads in Technology Fundraising
According to TechIreland’s Startup Funding Vibes report for Q2 2024, Dublin startups continued to dominate in the national context. Of the €371 million in funds raised in Q2, €289 million (77.9%) was secured by companies in the Capital. This was spread across 29 companies out of a total of 48 companies nationwide. The most sizeable fundraisings amongst Dublin companies in the quarter were for SynOx Therapeutics (€70 million, pharmaceuticals sector), AccountsIQ (€60 million, software) and GridBeyond (€52 million, energy technology). Q2 represented a significant uptick in funding for Dublin companies from the €41 million raised in the first quarter of the year.
Labour Market Movements
IBM has announced that it will create 800 new jobs in Ireland, with the majority at its Dublin and Cork campuses. The roles will be in research and development, sales and consulting. Tech firm, Slalom, which established in Dublin last year with the creation of 40 jobs, intends to recruit a further 300 in the coming five years across AI, Salesforce, data analytics and business advisory services. KPMG has also announced the creation of 200 jobs in Dublin as part of its new European Artificial Intelligence (AI) Hub. Microsoft and Cranium will collaborate with the company on the hub which will focus on AI and regulation, and especially the EU AI Act. In contrast, Indeed is to let more than 60 people go from its Dublin office as part of a second wave of job losses at the company.
Springboard Stock Exchange
The Irish Stock Exchange, Euronext Dublin, has announced that it is opening a springboard stock market for start-ups and fast-growing small and medium businesses. The exchange will pitch to firms worth between €3 million and €10 million with a view to building Euronext Dublin’s other exchanges following delistings by CRH, Flutter and Smurfit Kappa over the past 12 months. The Chief Executive of Euronext, Stéphane Boujnah, said that “what’s happening in Dublin is much closer to what’s happening in London than the rest of
IBM has announced that it will create 800 new jobs in Ireland, with the majority at its Dublin and Cork campuses.
Europe.” In this regard he outlined how in “the rest of Europe […] we’re not seeing this exodus of companies, even if we are seeing a smaller number of IPOs.”
Commercial Property Dealmaking
Dublin’s commercial property market remained in uncertain territory in Summer 2024. Vacancy rates (shown in the chart) increased in the Suburbs but declined in Dublin 2/4 in Q2. A number of notable leases were signed in recent months. Stripe signed the largest deal in Q2 when it secured a lease for 156,000sq ft of office space at Wilton Park One in Dublin 2. The office was originally pre-let to LinkedIn, but will now be Stripe’s new European Headquarters following what was the largest single leasing agreement signed in the Capital since late 2022. EY have also agreed to let space at Wilton Park from 2026 onwards, with LinkedIn taking up a smaller office than originally expected at the campus.
Dublin Job Creation Slows in Q2 Purchasing Managers’ Index
Although the Dublin PMI showed a slowing of economic growth during the second quarter, the Capital remained in expansion mode and is on a solid footing heading into the second half of the year. The main area of weakness was manufacturing which continued to scale back production, but the service sector in particular powered ahead.
The Q2 2024 Dublin Purchasing Managers’ Index (PMI), which tracks business activity in the Capital, showed that activity in Dublin’s private sector rose for the sixth consecutive quarter – though job creation slowed. The headline activity rate softened to 52.4 from 53.1 in Q1, and was lower than the 54.9 reading in the same quarter in 2023. After a weaker start to 2024, business activity (52.8) in Rest of Ireland outpaced Dublin in Q2.
The services sector in Dublin continued to drive growth in Q2 with a robust index reading of 54.0. There was also a further increase in construction activity (51.9) which likely reflects the acceleration in housebuilding in the Capital in recent quarters. However, a deepening downturn was registered in manufacturing with the headline rate slipping to 46.5 from 49.9 in Q1. This is firmly below the 50 mark which denotes growth and is a concern given the sector has been in contraction for seven of the last eight quarters.
Reflecting the overall deceleration in business activity, the Q2 rate of job creation by Dublin businesses was the softest since Q1 2021. The slight increase in employment in the quarter (50.8) contrasted with the solid rate of 53.9 recorded in Q1. Job creation in the Rest of Ireland was steady with the index remaining at 52.5.
On a positive note, the new orders index for Dublin signalled an increase for the second consecutive quarter in Q2. At 52.0, it was marginally weaker than the 52.7 seen in Q1 2024 but the level still bodes well for activity in the coming quarters. New orders across the Rest of Ireland (53.2) rose at a faster pace than in Dublin.
RETAIL
Dublin retail spending growth maintained in early summer 2024
MasterCard Total Retail Sales Index (SA)
Retail spending in the Dublin economy continued to increase in Q2 2024, maintaining the moderate growth rate recorded in the previous quarter. Total expenditure reached an index reading of 147 (100=Q2 2015) in Q2, up by 0.7% QoQ and 2.3% YoY. Spending by consumers has now risen QoQ in every quarter for four years, and has maintained an upward trajectory despite challenges including the Covid-19 pandemic. In contrast, retail spend nationally declined by 0.3% QoQ in Q2, but did expand by 1.3% YoY.
Increased spending in Dublin in the quarter was driven by Entertainment spend which increased by 1.5% QoQ, thus providing the hospitality sector with a fillip in what has been a challenging period. Discretionary sales in department and clothing stores rose by 1.2% QoQ.
This may be an indication that consumer confidence is growing and consumers are gradually spending more in ‘non-essential’ areas, following contractions in the latter half of 2023.
Further growth in real incomes is expected over the coming quarters and will be expected to be influential in this regard.
Necessities and Household Goods spending remained relatively stable in Q2, each recording minimal declines of 0.1% QoQ. While minor, these were the first such declines recorded across both categories since Q3 2023.
eCommerce accelerated in Q2, rising by 1.6% QoQ versus +1.3% QoQ in Q1 2024.
METHODOLOGY
US market drives tourist spending increase in Q2
Spending by tourists in the Dublin economy grew for a second consecutive quarter in Q2 2024. Expenditure increased by 0.3% QoQ and by 4.1% YoY following a tumultuous series of quarters in which spending from specific markets has wavered considerably. Despite the expansion in tourist spending, the growth rate was slower than in the first quarter of the year (+1.6%) and this highlights the ongoing uncertainty in the industry.
Increased spending in Q2 was driven predominately by US tourists - a critical market for tourism in the Capital. Expenditure by visitors from the US increased by 4.5% QoQ, having failed to record growth across the preceding two consecutive quarters.
The Chinese and French markets also recorded growth in expenditure, increasing by 2% and 0.6% QoQ respectively.
In contrast, marginal contractions in spending were recorded from both the German (-0.7%) and UK (-0.4%) markets. The latter is of greatest concern given UK visitors are vital to the Dublin economy, especially for weekend breaks.
Across Ireland, tourism spending grew at faster rates, increasing by 2% QoQ and 6.4% YoY. Increases from the French (+4.9%) and US (+3.4%) markets were key drivers of growth QoQ, with the Chinese market –which is relatively small – also recording an expansion of 4.7%. Spending from the German market remained flat in the quarter, while spending by visitors from the UK recorded a decline of 0.9% QoQ which was more severe than in the Capital.
Interest Rate Expectations
As a key tool in the fight against inflation, interest rates were hiked by central banks across the world over the past two years. As inflation has eased, the ECB has moved to reduce its headline rate to 4.25% with expectations that further cuts will materialise over the coming quarters.
As shown in the chart, an ECB Survey of Professional Forecasters in July 2024 showed that expectations are for cuts to 4% in Q3 2024, 3.5% in Q4, 3% in 2025 and 2.5% in 2026. While such expectations are subject to significant uncertainty, it appears interest rate cuts are imminent – each of which would provider a further stimulus for consumers in Ireland.
HOSPITALITY
Hotel rates in Dublin reach new peak in june
Dublin Hotel Supply & Occupancy Rates
Dublin's hotel market recorded a strong early summer 2024 period through to July. Occupancy rates stood at 88.5%, 90% and 86.9% in May, June and July respectively, broadly aligning with the same period in 2023. Average daily rates (ADRs) for rooms reached a new peak of €216 in June, an increase of 3.4% when compared to June 2023. This followed YoY declines across each of the previous seven months. Performances by global acts including Taylor Swift in June are likely to have influenced ADRs in the month, which declined again to €177 in July. The supply of hotel rooms also reached a new peak index reading of 136.2 in the month of July as new hotel developments continued to feed the market.
Prime time restaurant bookings resilient through August 2024
Seated Diners at Dublin Restaurants (% Change Relative to 2019)
Seated diners at Dublin restaurants remained buoyant through August 2024, following a slow start to the year. According to OpenTable data, the volume of diners on Saturdays in the Capital remained above the 2019 baseline (0% on the chart opposite) every week from late February - with a notable spike at the St Patrick's weekend in March. This comes in spite of challenging operating conditions which have seen a number of significant restaurant closures in recent months. Nationally, the performance of the sector has been stronger in 2024, with the number of diners more than doubling in midAugust versus the 2019 baseline.
Funded Education & Training Supports for Enterprise in Dublin helping to address challenges of the Artificial Intelligence revolution
Leon
Harding
Enterprise Engagement Manager, Dublin & Dún Laoghaire Education and Training Board (DDLETB)
While businesses in Dublin are increasingly understanding the power and potential of AI, challenges remain to ensure detailed knowledge of the subject among some business leaders in the capital, a number of whom do not yet have a clear AI vision or strategy in place for their business. Other challenges include the need to ensure that I.T. and other staff are equipped with the skills required in a continuously changing technological and regulatory environment. In response to these challenges, education and training providers are developing and delivering a range of training supports to help ensure AI readiness.
Recent research by Storm Technology, a business technology consultancy, found that 59% of business leaders believe that their company needs to adopt AI in order to remain competitive, and 46% of respondents believe that their company will lose market share if they fail to invest in AI. The same research found that 49% of business leaders said that their senior management do not fully understand the potential of AI.
These figures illustrate that while there is a clear understanding of the growing importance of AI, there is also a need for business leaders to learn more about it to ensure that their company can maximize the potential of AI and secure against risk. The fact that 63% of Ireland’s tech workforce is located here, means that for Dublin in particular, it is vital that the appropriate training supports are in place and are easily accessible for staff at all levels in the capital.
Dublin and Dún Laoghaire Education and Training
The fact that 63% of Ireland’s tech workforce is located here, means that for Dublin in particular, it is vital that the appropriate training supports are in place and are easily accessible.
Board (DDLETB), through their services for business unit, provide a wide variety of funded workforce development supports for enterprise, including certified courses funded through the SOLAS Skills to Advance programme. In the area of AI, DDLETB provide funded training solutions at various levels aimed at different cohorts – an example of these include a series of business breakfasts where business leaders can talk directly to AI industry experts and get an insider’s look at how AI can transform their business. The ETB are also developing an AI foundation course to follow this. For those who wish to progress to more advanced training, they offer the ICDL certified Artificial Intelligence module which covers what AI is, how AI works, common AI examples and AI adoption: challenges and potential. For I.T. professionals wishing to upskill, they have scheduled courses including Microsoft AZURE AI.
As AI skills become increasingly vital for economic growth, funded, flexible and accessible training supports in this area will help to ensure that enterprise in Dublin remains equipped, ready and at the forefront of what is a rapidly changing landscape.
To learn more about the education and training supports available to business in Dublin email: servicesforbusiness@ddletb.ie
LABOUR MARKET
Dublin's unemployment rate continues to fall
Dublin's unemployment rate fell to 4.5% (SA) in Q2 2024, having fallen for the last two consecutive quarters. The Q2 rate represented a 0.3 percentage point (pp) reduction QoQ and 0.2pp decline YoY, in what is an indication of the rude health of the local labour market. At the national level, unemployment increased by 0.1pp QoQ to 4.4% (SA) but remains close to full employment. Skills and labour availability remain an issue in the Capital and nationally and are challenges for many organisations.
Employment levels climb to new peak in Q2
Employment levels amongst Dublin residents gained further momentum to reach a new peak in Q2 2024. The number of residents in employment reached 826,600 (SA) in the quarter. This was up by 1.6% QoQ (+13,200 jobs) and 2.9% YoY (+23,600 jobs). Industry was the biggest driver of QoQ growth, increasing by 20.3% in the quarter (+10,900 jobs). The public sector and private services sector also recorded increases of 1.3% and 1.2% respectively. In contrast, there was a decline in the construction sector of 17.1% QoQ. Research indicates a decline in commercial and civil engineering activity may be indicative of the fall in construction employment.
Employment by Broad Sector '000s (SA)
Dublin job postings continue on downward trajectory
The number of Dublin job vacancies posted on the Indeed website continued on a gradual descent through August 2024. The jobs posting index for the Capital stood 13.6 percentage points (pp) below the 2020 baseline in August, in part due to the Capital’s exposure to industry slowdowns in technology and professional services. In contrast, across the rest Ireland in August, job listings stood 46pp above the 2020 baseline. In spite of the high index readings outside Dublin, job postings have been moderately declining towards more ‘normalised levels’.
Exceptional Q2 FDI growth after slow start to 2024
Based on a rolling 4 quarter average, foreign direct investment (FDI) into Dublin increased rapidly QoQ in Q2 2024, following a slow start to the year. Average capital investment over the 4 quarters increased by 36% QoQ to $846m, driven by a strong Q2 which saw capital investment in absolute terms more than quadruple QoQ to $1,452 million. In spite of increasing investment, the number of FDI projects and jobs created declined QoQ by 11.7% and 1.2% respectively, based on a rolling 4 quarter average – an indication that projects, although fewer, have been more capital intensive. FDI per capita in Dublin based on a rolling 4 quarter average compared favourably internationally at $736 in Q2.
Dublin’s Third Level Credentials Underlined in Latest 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 opposite).
Quality Education
The reputation of Dublin as a centre for quality education was further bolstered by the 2025 QS World University Rankings. Trinity College Dublin remained the top ranked Irish university at 87th globally. This was a reflection of particularly strong scores in global engagement and employability metrics. UCD also ranked in the top 150 in the world. Its ranking of 126th was also related to global engagement and employability, with sustainability marking a further strong point for the university. The other Dublin universities of DCU and TUD recorded strong showings of 421st and 851st900th. Faculty student ratios, which compare students to educators, was a notable weak point for all Dublin institutions, according to QS.
Liveable City
Dublin remains one of the most liveable cities in the world, despite a modest reduction in its international rankings. According to the Economist, the city ranks as the 39th most liveable globally, albeit down from 32nd in 2023. The decline in ranking was one of the largest in the report, and “disruptive protests” were highlighted as a factor in this. In a broader context, the Economist noted that “Western Europe remains the most liveable region, but has seen a decline in stability scores amid increasing instances of protests…on a variety of issues” – including the rise of far-right extremism, EU agricultural policy,
and anti-immigration sentiment. Vienna remained the world’s most liveable city for a third consecutive year.
Cost of Living Challenge
Dublin has been ranked in the top 50 most expensive cities in the world for international employees. The Capital was placed in 41st position by Mercer, up 10 places from 51st in 2023. While Dublin is more expensive than European cities including Milan (57th) and Rome (67th), it was ranked behind the likes of London (8th) and Berlin (31st). According to Mercer, the cost of living in Dublin remains relatively stable for international workers and that while the Capital’s ranking increased, prices remain low relative to other, nearby cities. The 2024 rankings were topped by Hong Kong, followed by Singapore and Zurich.
Construction Issues
The Capital has been ranked as the 4th most expensive city in Europe in which to build. Turner & Townsend’s International Construction Market Survey for 2024 positioned Dublin behind only Zurich (average cost of $5,035 per square metre), Geneva ($5,022) and Munich ($3,797). Dublin’s average cost of $3,775 per square metre was linked to strong investment in both public and private housing projects by Turner & Townsend. Residential and retail construction costs were notably higher in Dublin with apartment costs ($3,667 per square metre) exceeding those recorded in the likes of Paris, Munich and Amsterdam.
DUBLIN'S INTERNATIONAL RANKINGS
DUBLIN'S LATEST INTERNATIONAL RANKINGS
Housing market activity falls in June 2024
Dublin Residential Property Transactions (SA)
Activity levels in the Dublin residential property market fell in June 2024. Total transactions dropped to 1,582 (SA) in the month, the lowest volume since January 2023. This reflected declines of 16.4% MoM and 12.9% YoY which are likely related to relatively high interest rates and limited housing supply, both of which are affecting potential buyers. Housing transactions fell at similar rates across Ireland in June, declining by 12.6% MoM and 9.9% YoY. The housing market presents a mixed picture, with fluctuations in property transactions contrasting with continued increases in house prices amid tight supply.
Residential property prices continue to rise in Q2 2024
Residential Property Price Index (2015 = 100)
Residential property prices in Dublin continued to increase over Q2 2024 to reach a level marginally below the Celtic Tiger peak index reading of 160. House prices in Dublin reached 158.9 on the index in June, reflecting an increase of 0.8% MoM and 9.3% YoY. The MoM growth rate represented a quickening of pace from the preceding months of April (+0.1%) and May (+0.4%), and coincided with the ECB cutting interest rates by 0.25%. Outside of Dublin, prices have followed a similar trend, increasing by 0.6% MoM and by 8.2% YoY in June, with an index reading of 205 recorded in the month. Factors including the recent growth in the labour market and real incomes are likely drivers of increasing house prices - alongside interest rates which are expected to fall further in the coming quarters.
Residential rents rise across 5 main areas of Dublin
Residential rents for advertised properties continued to increase across the Dublin region in Q2 2024 according to data from Daft.ie. Monthly open-market rents increased across five of the six areas of the Capital, with the strongest QoQ growth recorded in North County (+3.5%) and North City (+3.4%) respectively. In contrast, South County, which remains the most expensive area with open-markets rent of over €2,600 per month, recorded a marginal decline of 0.6% QoQ. On a YoY basis all six areas recorded growth, with both North City and West County recording growth of over 5%. Rent prices pressures are likely to remain as supply remains constrained.
Construction commences on a record number of new homes in Q2
Housing commencements across Dublin reached a new peak of over 7,500 in Q2 2024. This represented an increase of 74% QoQ and a more than doubling YoY in what is a fillip for the residential stock in the Capital. In April alone, construction commenced on almost 6,000 units, the highest monthly total since records began in 2011. This was most likely a result of a levy waiver support to reduce housebuilding costs, which had been scheduled to end in April but has since been extended to December 2024. Housing completions also recorded an increase in the quarter, rising by 3% QoQ, and adding 2,250 (SA) new units to the housing stock. While this was down YoY (-10.9%), the robust supply of housing in the pipeline and the continuation of government supports to stimulate growth - including the extended levy waiver and an Irish Water rebate - should contribute to rising completions in the coming quarters.
TRANSPORT & TRAVEL
Public transport journeys exceed 70 million in Q2
Public Transport Million Trips (SA)
Passenger journeys on Dublin’s public transport network reached a new peak in Q2 2024. A total of 70.7 million journeys (SA) were recorded in the quarter, reflecting an increase of 7.6% QoQ or an additional 5 million passengers (SA). YoY growth was even more pronounced with an additional 8.1 million journeys recorded (SA), an increase of 13%. Journeys on the Luas network, which marked its 20th anniversary in June, increased by over 2 million passenger journeys in the quarter to 14.7 million (SA), having recorded the largest QoQ expansion (+16%) of all modes. QoQ increases were also recorded across Irish Rail (+9.1%), Dublin Bus (+5%) and Bus Eireann (+4.5%). In the last week of June, there were small increases in short journey fares across the Luas, Dublin City Bus and Irish Rail services as the first phase of the Transport for Ireland 2024 fares determination for Public Service Obligation (PSO) services took hold.
Traffic volumes in Dublin fall through summer
Traffic volumes on eight main roads in the Dublin region declined MoM over the summer period. Average daily traffic counts stood at 602,500 (SA) in the region in the third week of August, a decline of 3.1% from the same week in July. This broadly repeated a trend of declining traffic volumes in the late summer periods of both 2022 and 2023, and a post-summer pick-up may hence be expected. MoM declines were mainly driven by lower off-peak traffic volumes which contrast to peak AM and PM periods where respective MoM increases of 5% and 1.1% were recorded.
Dublin Average Daily Traffic Count '000s (SA)
Busy Q2 at Dublin Airport as summer schedule kicks
off
Dublin Airport Passengers '000s (SA)
Dublin Airport passenger numbers remained strong in Q2 2024, as its summer schedule commenced. Almost 8.7 million (SA) passengers passed through the airport in the quarter, representing growth of 3% QoQ and 4.7% YoY. The increase of 255,000 passengers (SA) QoQ was aided by big events including the Europa League Final which was hosted in Dublin in May, and appearances by global acts such as Taylor Swift and Bruce Springsteen in June. Thursday 23rd May was the airport's busiest ever day for departures, with throughput of more than 68,000 departing passengers. This was due to a surge in football fans making the return leg of their journey following the final at the Aviva Stadium.
Dublin Port activity remains stable YoY in Q2
Dublin Port Tonnage Million Tonnes (SA)
Total trade volumes at Dublin Port remained stable YoY in Q2 2024. The total tonnage handled at the port reached 8.9 million tonnes (SA) in the quarter, the same volume handled in Q2 2023, however there was a 2.2% increase QoQ. Just over 5.5 million tonnes (SA) of imports were handled in Q2 2024, an increase of 2.5% YoY (+134,000 tonnes SA). In contrast, exports declined to 3.4 million tonnes (SA) in the quarter, a 3.8% decline YoY. To increase capacity and keep up with expected future demand, Dublin Port Company has recently received €73.8m in funding as part of the EU's Connecting Europe Facility for Transport programme to support sustainable, safe and smart transport infrastructure.
Dublin's AI Revolution: A New Chapter in Ireland's Tech Success Story
Mark Kelly AI Ireland Founder
How Artificial Intelligence Is Transforming Dublin into a Global Tech Hub and Reshaping Its Economic Landscape
If you haven’t walked down by the River Liffey recently you may have missed Dublin's skyline which now stands as a testament to Ireland's remarkable journey from economic underdog to European tech powerhouse. Now, artificial intelligence (AI) is writing the next chapter of this success story, positioning Dublin at the forefront of the global AI revolution. As the founder of AI Ireland and the AI Awards, this year looks to be the most impactful for the awards with over 500 applications on the island of Ireland.
The AI-Driven Transformation of Key Sectors:
Fintech: Dublin's New Goldmine
In the International Financial Services Centre (IFSC), AI is more than a buzzword—it is a profit driver. Fenergo, a Dublin-based regtech unicorn, has leveraged AI to slash client onboarding times by 82% for major banks, directly impacting bottom lines. Meanwhile, Stripe's European HQ reports a 35% improvement in fraud detection rates, safeguarding millions in transactions daily.
AI isn't just optimising operations; it is redefining what's possible in fintech. Dublin's unique ecosystem of talent, tax incentives, and EU market access makes it the perfect launchpad for AI-driven financial innovation.
MedTech: AI's Life-Saving Potential Dublin's healthcare sector is witnessing an AI-powered renaissance. At St. James's Hospital, AI tools from local start-up Deciphex have boosted early cancer detection rates by 28%. This isn't just a medical breakthrough; it’s a market opportunity. Deciphex recently secured €25 million in Series B funding, highlighting investor confidence in Dublin's medtech scene.
Smart Mobility: Redefining Urban Transport
The Dublin Bus Network Redesign project showcases AI's potential to transform city infrastructure. By harnessing AI for route optimisation, the project has achieved a 22% increase in on-time performance and 8% reduction in fuel costs. These efficiency gains translate to millions in savings and improved urban living—a model that cities worldwide are eager to replicate.
The AI Talent Race: Dublin's Competitive Edge
While the spectre of job displacement looms—with 15% of current roles at risk of automation—Dublin is turning this challenge into an opportunity. The AI Skills initiative, a public-private partnership, has retrained 5,000 professionals in AI skills, with 78% landing AIenhanced roles within six months.
AI Ireland is also helping organisations prepare for the future of work, helping to shape an agile workforce and supporting proactive upskilling initiatives to further attract AI investments.
Dublin's AI Startup Ecosystem: The New Silicon Docks
Enterprise Ireland's €500,000 Competitive Start Fund for AI has catalysed a wave of innovation, launching 25 AI ventures in the past year alone. Success stories like Artomatix (acquired for €60 million) and Nuritas (€40 million Series B) are turning heads in Silicon Valley and beyond.
Dublin offers a unique value proposition for AI startups with previous leaders working in Google, Amazon and Microsoft now becoming founders to help supplement the ecosystem. Compared to San Francisco Dublin has better access to talent and a more favourable cost structure than London or New York.
Ethical AI: Dublin's Competitive Differentiator
With the EU AI Act now law since the 1st of August and 40 out of the 50 US states introducing regulation AI ethics will intensify globally, Dublin is positioning itself as a leader in responsible AI development.
In this year’s awards there are some fantastic example’s of Ireland’s proactive approach to AI ethics for the AI in Ethics category. This is also matched in the AI for Sustainability category, sponsored by Dublin City Council, with companies focusing on innovating while being mindful of our environment. As global tech giants
While the spectre of job displacement looms—with 15% of current roles at risk of automation—Dublin is turning this challenge into an opportunity.
face increasing scrutiny, Dublin-based companies can leverage an ethical framework as a seal of trust.
The 2030 Vision: Dublin as Europe's AI Capital
As London's tech scene grapples with governmental changes and reduced AI investment plans, Dublin is poised to seize the mantle of Europe's AI capital. Industry projections paint an ambitious picture: by 2030, AI could contribute a staggering €15 billion to Dublin's economy, representing 12% of the city's projected GDP. This vision is not merely aspirational; it is backed by concrete initiatives and growing industry recognition.
Key Initiatives Fuelling Growth:
• Europe's Largest AI Hub: A €300 million AI Research Centre, slated to open in 2026, will serve as a beacon for global AI talent and innovation.
• Sustainable AI: The AI for Sustainability Project aims to leverage smart city solutions to slash carbon emissions by 30%, positioning Dublin at the forefront of green AI applications.
• Fostering AI Excellence: The prestigious AI Awards, set for 26 November 2024 at the Marker Hotel, will showcase Dublin's AI prowess. This event will bring together investors, educators, entrepreneurs, and local businesses, all united in the mission to harness AI for positive impact.
Dublin's journey to become Europe's AI capital is more than an economic transformation—it is a testament to the city's innovative spirit and forward-thinking approach. As we look towards 2030, Dublin stands ready to write the next chapter in the global AI narrative, offering a unique blend of technological innovation, ethical leadership, and sustainable growth.
