UK hotels and restaurants are feeling the benefits of record employment and consumers’ willingness to spend rather than save.
New figures from the statistics office showed that spending by households in this category is at the highest in five years, at £45.10 pounds per week. The data include restaurants and pubs, as well as hotel stays and take-outs. Separate numbers showed that the average weekly spend on cinema and theatre tickets, television subscriptions and newspapers held steady.
The Office for National Statistics cited "high levels of employment and rising disposable income" in its analysis. The most recent labor-market data showed the UK employment rate is at a record high, while unemployment - at 4.8 percent - is at the lowest in more than a decade.
While the amount spent on dining out and staying at hotels per week in 2015-2016 is the highest since 2010, it’s still below the previous peak of £52.20 in 2002-2003.
Total average weekly spending by households was little year-on-year at £529, though it’s also well down on its pre-crisis levels of £554 in 2004-2005.
Average spending on alcohol and tobacco continued its long-term downward trend and fell below £12 for the first time, the statistics office said. Adjusted for inflation, spending is down from almost £20 in 2001-2002.
News by Bloomberg, edited by Hospitality Ireland