Hotels and restaurant have reaped benefit of UK consumer boom

(Supplied)
(Supplied)

London - UK hotels and restaurants have been 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 was at the highest in five years, at £45.10 per week in 2015 to 2016.

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 labour-market data showed the UK employment rate is at a record high, while unemployment - at 4.8% - is at the lowest in more than a decade.

While the amount spent on dining out and staying at hotels per week was the highest since 2010, it’s still below the previous peak of £52.20 in 2002 to 2003.

Restaurant owners predict 2017 won’t be as lucrative.

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 to 2002.

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