A recent report by the Swiss bank UBS says that Dubliners are enjoying some of the highest salaries in the world but at the same time suffering some of the highest prices.
In the list of cities with the highest paid citizens Dublin ranks fifth, with costs rating forth. Only in cities such as Copenhagen, Oslo and Zurich could you earn more according to the report.
The report says, "Oslo, London and Copenhagen remain the most expensive cities for visitors. However, one city is boldly challenging the top of the list. In 2005, Dublin was the thirteenth most expensive city we surveyed; now it ranks number four, just in front of Zurich."
The Epoch Times talked to the Lord Mayor of Dublin Councillor Paddy Burke about what this means for the Irish economy, tourism and the less well off in Irish society.
"It is clear that unprecedented growth in the Irish Economy has brought about enormous changes to the Country and city that we live in today. Dublin is an almost unrecognisable place from where it was in the 1980's when unemployment was over 20%, there was widespread emigration and a complete lack of investment within the city", said the Lord Mayor.
"Dublin is now one of the fastest growing cities in Europe attracting large number of international populations and investment. Over the past decade, the Irish economy has grown at unprecedented rates.
"The challenge now is to build on Dublin's recent success to make it a truly world class city to attract the next generation of international talent, investment and jobs.
"One of the side effects of Ireland's success is increasing costs; this can be seen in Dublin's rapid advance in cost of living tables when compared to other international cities. Rising costs can been seen as both a symptom and as a threat to our success.", he explained.
It was also noted that costs in a city do not alone impact the ability of a region to generate employment and economic success. The skill set of the work force, their productivity and quality of infrastructure also play an important role. Attracting a skilled workforce to Ireland from abroad is also vital for Ireland to continue to attract major investment.
"Dublin City Council needs to ensure that quality of life and the attractiveness of Dublin as a city to live work and visit is maintained", said the Lord Mayor.
"Dublin is now one of the fastest growing city regions in Europe and non-Irish nationals now account for over twelve per cent of the city population"
The Lord Mayor explained that high wages are not necessarily a bad thing when trying to create jobs in Dublin. High wages are necessary in order to attract the best people from throughout Europe to come and work here.
"Dublin needs to be able to attract the brightest and best workers to the city. Firms and business will locate to Dublin if it is a city that attracts the right type of workers.
"High wages are one of the factors that can assist in attracting such talent to a city. We also need to ensure that the buzz or character of the city along with the welcome on offer continues to be of a high standard", he said.
Tourism is increasing although prices are rising
The tourism industry which is vitally important to the Irish economy is threatened by the rising prices in the city coupled by the strength of the Euro against the Dollar.
However the Lord Mayor explains that the number of tourists coming to Ireland is increasing year on year.
"With respect to tourism even though the costs of visiting Dublin have risen it is clear that this has not had a negative impact on the influx of tourists to the city. Record numbers of tourists visited the city in 2006", he explained.
The figures agree with him; in 2006 5.6 million visitors visited the Dublin region and they spent 1.6 billion Euro. This was double the revenue generated in the year 2000 when the Celtic tiger economy was just getting started.
Dublin has now established itself as one of the prime tourist destinations in Europe with a vibrant pub, club and restaurant sector to match Europe's best, coupled with the traditional attractive scenic beauty and friendly locals.
Although the Lord Mayor does not think Dublin is in a position to compete with the major capitals of Europe such as London, Paris and Rome our ranking is very similar to a cluster of other cities such as Prague, Barcelona, Vienna, Amsterdam and Madrid.
This poses both and opportunity and a threat explains the lord Mayor, "In order to continue to be well positioned in the rankings, Dublin must continue to be competitive. Ireland, and in particular Dublin, is now considered a high cost destination and this poses a threat to competitiveness and perceived value.
"Where tourism product prices become expensive relative to those in competing destinations, the commercial response required of the industry is to deliver value for money to its customers. The overall quality of the tourist experience then becomes the defining criterion of value."
Distribution of wealth
There is no doubt that the Dublin of today is completely different to the Dublin of twenty years ago. The Celtic tiger brought huge resources for the government to invest into the city and this can be seen throughout the landscape especially in Dublin city centre where much of the city has been redeveloped.
"The economic boom over the past ten years has brought massive changes and prosperity to the city. It is clear that the city is a much better place to live in compared to the 1980's where there areas in terminal decline especially in the inner city", said the Lord Mayor.
"It is clear that the success of major council led regeneration projects has benefited the city as a whole. Major regeneration in areas such as Fatima Mansions, Ballymun, O'Deaveney Gardens are bringing about positive changes to the most disadvantaged areas of the city."
However not all of Ireland is currently taking home high salaries to help pay for the rising cost of goods. A recent comprehensive study on deprivation in Ireland found, "that research has shown that the worst affected areas in 1991 were generally in the same position in 2006, despite the unprecedented economic growth that has been experienced by practically all parts of the country."
In response to this finding the Lord Mayor said, "The rising tide seems to have lifted most boats, but this 'lift' has tended to conserve the relatively stable differentials that exist between affluent and poorer areas."
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