In just over a month's time, Irish shoppers will descend on New York for the annual Christmas spending splurge, handing over an estimated €500m to retailers as they smoke out the latest bargains on Fifth Avenue. The annual spending frenzy costs Irish retailers dearly. Last year it was estimated that the exodus to the US cost retailers here over €1bn and the state more than €300m in lost taxes.

With money so scarce at the moment, you would be forgiven for thinking that the Irish might stay home this winter and exchange home-made presents, but the signs are that it's business as usual. John Donohoe of the Irish branch of NYC and Company, the city's official marketing and tourism organisation, says anecdotal evidence suggests this year will be busier than ever.

"Airlines like Continental and Delta are saying they are absolutely buoyant and jam-packed and the other indicator is that the hotels that we know are big with Irish people visiting New York – the Beacon Hotel and Fitzpatrick's – are running at a higher occupancy rate than last year. It is still very good," he said.

Consumers are benefiting from reduced fares – fuel surcharges last year added as much as €150 to the cost of a return flight – and a more competitive market for accommodation, with New York hoteliers responding to the recession by reducing prices. That said, if you haven't already booked your trip, you should brace yourself for a serious dent in your finances.

Money Talks contacted several tour operators seeking prices for a three-night trip for two to New York, flying out on Thursday 3 December and returning on Sunday 6 December. This is the weekend after Thanksgiving, traditionally a busy time for Irish shoppers heading stateside to take advantage of the sales. With accommodation at a relatively decent hotel, the cheapest available package was a hefty €947 per person. The most expensive quote, staying at Fitzgerald's, was an eye-watering €1,340 per person. That's before you include the cost of local transport – you'll need the odd taxi or two to get those bags back to the hotel room – as well as food and entertainment costs.

So is it worth the effort? Well, yes and no. Only a fool would tell you that there isn't great value to be had in New York. A quick trawl of the internet reveals that retail prices are already considerably lower, but when you factor in the strength of the euro against the dollar, they are even more attractive. You can also use your passport to register as a visitor at department store's such as Macy's, and thus avoid paying local sales tax at source. However, the only way to ensure you get real value out of the trip is to shop until you drop.

"The more you buy the more you save," said Donohoe. "People are going over with specific items in mind. We all have the internet; we know what the prices are there compared to here. Look around Dublin and see the kids wearing Abercrombie and Fitch. There's no shop in Dublin. They are buying that on Fifth Avenue. People are going over for specific items, with the Christmas shopping list ready and they have their homework done."

Attacking the shops with military precision is the way to maximise your bargain hunting. Use the internet to plan well in advance what you want to get and what you are willing to spend, and stick to it.

One shopper who made the trip last year told Money Talks that they were hugely disappointed, returning home with bags full of clothing that they didn't want or need but bought because they felt they would be wasting the opportunity otherwise. For more information on shopping in New York and visiting the city in general see www.nycgo.com.

Now for the really tricky bit. Legally, when you return to Ireland you should declare any items over and above a certain threshold to customs and pay whatever VAT or duty is applicable. You are allowed to bring a limited amount of goods into the country duty-free.

For anyone over the age of 15, this limit stretches to €430 collectively, and for under-15s, the limit is just €215. This includes all goods – gifts, souvenirs, perfumes and clothing.

You should also note that the limit does not apply to a single item that exceeds the threshold, so if you buy a camera worth €700, you will pay import charges on its full value rather than on the balance after €430. The usual alcohol and tobacco allowances also apply.

Let's be realistic though: thousands of people travel to New York annually to spend with impunity in the hope that they can slip by customs officials unnoticed on their return. And the truth is that many of them succeed. However, a spokeswoman for the Revenue Commissioners warned that anyone who is caught trying to sneak past customs with undeclared goods runs the risk of having those goods seized and possible prosecution. And you can forget about ripping the tags off your new goods in the hope that customs officials will be fooled into thinking that $1,000 coat from Barney's is just your everyday wear.

"Custom officials at the airports are very experienced and if there is a trace of suspicion or they are not satisfied that the goods are for your own use, they will confiscate the goods and detain them for valuation. They are very experienced at this. They know that if someone is going to New York for three days they aren't bringing four or five suitcases with them," said the Revenue spokeswoman.