Despite rising interest rates and concern about the economic outlook, UK consumers plan on spending 18% more than last year in pubs, restaurants and nightclubs over the Christmas period, according to Deloitte, the business advisory firm.  With an average budget of £143 per person, in total pubs and restaurants look set to benefit from £6.8 billion in earnings during the Christmas period, an increase of £1bn on last year’s figure.

The increased spend reverses the belt-tightening seen last year when consumers said they would spend 16% less than the previous year, an average of just £121 each.  While both men and women have said they’ll spend more this year, there is still a significant difference in their average budgets. Men plan on spending £178, while women will spend £109.

The survey also found significant differences in spend around the UK. People living in the North West plan on spending the most this year, with their average budget of £178 being £22 more than the next largest spending region, London. The Welsh expect to spend the least – just £105 each.

The youngest age group 16-24 are amongst the biggest spenders on socialising with an average spend of £163, which reflects the fact that a large proportion of young people still live at home and are therefore not affected by mortgage rates.  It is however the older age groups that expect most greatly to increase their spending on socialising this year, as seen by a 40% increase for the over-55 age group and a 30% increase for the 35-54 age group.

Glyn Bunting, partner in the hospitality & leisure team at Deloitte said: “Despite some concerns in the pubs and restaurant sector about loss of business when the smoking ban was introduced this summer, our research suggests the ban has encouraged rather than deterred consumers from eating out this Christmas.  Despite some economic challenges, people expect to continue to eat out, because they want to and because they’re busy.

“Our research also shows that there is a particular opportunity for operators to boost revenues over the Christmas period by catering to family groups and older people.  Families are more likely to eat out together since the smoking ban came into force and providing friendly service, affordability and sensible menu choices will help attract them. Smart operators will also recognise that music can also be an alienating factor for family groups or older people and look to adjust their offering accordingly.”

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About this survey 
The survey findings were based on consumer data obtained by market research undertaken by TNS on behalf of Deloitte. Over 1000 adults aged 16+ were interviewed on 31 August 2007 - 2 September 2007. The respondents were selected according to a quota sample designed to be representative of all UK adults.

Survey questions relating to how much consumer will spend and confidence in the economy were repeated between 2-4 November.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other's acts or omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.