Spending on fun in the UK has grown by 6% year-on-year
The British public seem to have learned how to relax again as spending on leisure activities has increased by six per cent in a year and is expected to keep on growing.
The amount spent on leisure between April and June 2018 also grew over the first quarter of the year, according to Deloitte’s Passion for Leisure report.
Deloitte, one of the big four accounting companies, examined 11 different leisure categories and found consumer spending to have increased in seven of these. They surveyed 3,166 adults across the United Kingdom.
The report says: “The leisure consumer is in good spirits. Consumer confidence reaches a new high since 2011, while leisure spending has increased across almost all categories.
“Helped by a strong labour market, low levels of inflation and gradual real wage growth, alongside the return of good weather, consumers are once again keen to spend their disposable income on enjoying themselves.”
Long holidays showed the largest increase, with five per cent growth over the quarter. Short holidays also saw an increase of three per cent.
Eating out, drinking in pubs and bars, culture and entertainment, going to the gym and playing sport and other leisure also grew.
The only segments to not show an increase were betting and gaming, drinking in coffee and sandwich shops, in-home entertainment and sporting events.
Compared to the same period last year, long holidays only show a one per cent increase, while spending on short holidays has decreased by two per cent. All other categories but sporting events showed growth over the same period.
The category that showed the largest increase year-on-year was eating out, with an increase of five per cent.
Perhaps wishfully, British consumers expect to spend more in the third quarter of 2018 on going to the gym or playing sport, while the World Cup in Russia appears to have driven an increase in those who say that they expect to spend more on betting and gaming.
Consumers also expect to spend more on long holidays, while spending on short breaks is expected to stay flat.
Deloitte partner for hospitality and leisure Simon Oaten told Travel Weekly: “Leisure spending is an important bellwether for the health of the UK economy.
“If consumers are spending on discretionary items, whether that be cappuccinos or holidays, that is a clear sign of confidence in personal disposable income.
“It has been a challenging first half of the year,” he continued. “The fact that leisure consumers are in good spirits is welcome news. Crucially, habitual categories such as eating out and drinking have seen a spending boost, a sign of easing income pressure and improving confidence.
“The positive leisure outlook is in contrast with news about the struggling high street and political uncertainty.
“Leisure businesses should feel optimistic about the growing confidence and spending intentions of leisure consumers.
“Significantly, our research revealed consumers are looking to spend across a range of leisure categories.
“This means businesses from across the sector should benefit, whether a holiday operator, café, hotel, theatre or sports venue.”