Spending by the Elite Affluent (people with a Net Worth over US $10 million) is projected to grow significantly according to just released research from Prince & Associates/Elite Traveler magazine.
The survey of 511 Elite Affluent individuals was conducted from November 28-30 and shows while many Americans are fearful of interest rate hikes and increases in energy prices, the uber-wealthy will be spending even more this holiday than last year.
For example, the Elite Affluent are planning to spend on average $74,600 for jewelry this holiday — either for themselves or gifts, an increase of 10% from 2004. Spending on fashion accessories such as shoes and handbags will jump 39% to $29,100, according to the Prince & Associates/Elite Traveler magazine survey. Other spending categories on the rise over this holiday for the super rich include Hotel and Resort Stay (up 32% to $54,600), Yacht Charters (up 24% to $367,000), Villa and Ski House Rentals (up 27% to $61,700), Watches (up 17% to $44,900), Wines and Spirits for Entertaining (up 18% to $14,200) and Holiday Entertaining (up 22% to $29,800).
“These results show that the super rich are continuing to power the economy with mega-spending,” said Douglas Gollan, President and Editor-in-Chief of Elite Traveler, a worldwide magazine distributed to the super-rich aboard private jets and mega-yachts.
The survey also found the Elite Affluent will be giving on average $62,100 to charity during the holidays, a 5% increase from last year. “We believe one reason this category didn’t increase as significantly was that the very rich had just finished giving to various hurricane relief efforts,” Gollan noted.
Two new areas the research covered this year was in the arena of corporate entertaining and gifts. The survey found 51% of the super-rich plan to host an event or reception at hotel spending on average $36,300 while 75% will be sending gifts to customers spending on average $29,200.