IRELAND'S annual pilgrimage to the shopping mecca of Manhattan is set to continue this year in the face of growing budget fears and a continuing uncertain economy.

New York has long been the favourite festive destination for Irish consumers, seduced by its fairytale festivities from mulberry wine at Macy's to the snowmen at Saks.

Now, with a global trim on lavish spending, travel agents and hotels are slashing prices in a bid to draw in their traditional customer base.

Industry insiders say that US deals on offer this year will guarantee that the Irish continue to descend on Manhattan.

However, despite the impending stampede on Fifth Avenue and across the fashionable shopping districts, festive travel to the US from this country is expected to fall by around 10%.

"People are still considering what Brian Lenihan and Cowen are going to do in the budget – but when they see value they will buy it," said Frank Kelly of gohop.ie, the web wing of Atlas Travel.

"The main reason [for people travelling this year] is price. Obviously we are coming into the winter season and the airlines are doing fantastic prices."

Adding to the attraction this year is a favourable exchange rate. One euro is now worth $1.50, the lowest rate since August last year.

"[What should appear attractive are] the low rates and availability [of packages] because there isn't a large amount of people travelling. The value of the dollar against the euro will attract people," said Kelly.

"For anyone who has been in America, they will know what good value you get over there for that, especially in the winter months with all the sales."

Deals on trips to other US cities have also been dramatically reduced by travel companies determined to keep business going in uncertain times. But, for the time of year, New York will never lose its romance. "New York for three nights is €649 where as Chicago is €599 for four nights in a far superior hotel," said Kelly.

"New York is more expensive because of this love for New York. A lot of people go for shopping but they don't realise it's as good in Chicago, Boston – pick any city in America. But New York has the attraction of the theatre district and the whole vibe."

Bargain hunters can also wait until early in the new year when prices are expected to fall again.