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588 SC and Practice
Journal Bulletin of Stavropol Region
UDK 330.567.22(1-924)
Monika Utzig
EXPENDITURES ON RESTAURANTS AND HOTELS OF EUROPEAN HOUSEHOLDS
Summary: Household's expenditures on restaurants and hotels increases when their incomes increases because spending on restaurants and hotels can be treated as luxury good. In the paper the structure of household's spending on hotels and restaurants and its share in total consumption expenditure in European countries are
presented. European countries were analysed by the share and structure of expenditures on hotels and restaurants taking into consideration household income per capita.
Key words: expenditures on restaurants and hotels, households, European countries.
Monika Utzig -
Dr. Faculty of Economic Sciences Department of Economics and Economic Policy Warsaw University of Life Sciences Tel.: + 48 22 59 340 37
Household is defined as a group of persons living together and sharing their incomes and expenditures. Main factor affecting household's consumption expenditure is household's disposable income [Keynes 1936]. Macroeconomic approach is interested on the decision: how much of income to consume today and how much to save for the future. According to Engel analysis, the structure of consumption expenditures changes with disposable income [Utzig 2011]. As income rises, the proportion of income spent on food falls, despite of actual expenditure on food rising.
When household income increases expenditures on luxury goods are going up. Spending on hotels and restaurants can be seen as such a luxury goods.
Expenditure on restaurants and hotels are determined by factor similar to expenditures on holidays.
They are as follows: personal restriction (income and family size), socio-demographic characteristics (age, education and size of the city of residence) and psy-chographic characteristics (opinion on taking holidays) [Nicolau, Mas 2007].
In this paper differences between European countries are analysed, so only per capita income is treated as a factor determining expenditure on hotels and restaurants level and percentage. It seems to be proper approach according to the fact that within the same country households of highest income are characterised by highest share of expenditures on hotels and restaurants, clothing and footwear and recreation and culture [Radziukiewicz 2012].
The percentage of expenditures on hotels and restaurants in total consumption expenditure of households differs between countries (table 1.).
Table 1- Percentage of expenditures on hotels and restaurants in total consumption expenditure of
households in the span of 2005-2013.
GEO/TIME 2005 2006 2007 2008 2009 2010 2011 2012 2013
Belgium 5.8 5.7 5.7 5.7 5.7 5.6 5.7 5.7 5.7
Bulgaria 7.5 8.0 6.1 5.6 5.8 6.0 6.6 7.3 7.1
Czech Republic 7.7 8.1 8.3 7.6 8.1 8.1 8.5 8.1 8.2
Denmark 5.3 5.4 5.6 5.6 5.5 5.4 5.5 5.6 5.7
Germany 5.0 5.1 5.2 5.2 5.2 5.2 5.2 5.3 5.3
Estonia 7.0 6.9 6.9 6.6 6.1 6.5 7.1 7.2 7.3
Ireland 13.4 12.9 12.7 12.8 13.3 13.3 13.2 13.4 14.3
Greece 12.1 12.1 12.1 12.1 12.1 12.1 11.8 12.8 12.9
Spain 17.5 17.2 16.8 16.3 15.9 15.6 15.7 15.3 15.4
France 6.5 6.6 6.6 6.5 6.4 6.4 6.5 6.5 6.5
Italy 8.8 8.9 9.1 9.1 9.4 9.4 9.4 9.5 9.5
Cyprus 15.3 15.2 14.9 13.7 14.0 13.8 14.7 15.6 16.4
Latvia 7.2 8.4 6.2 5.7 4.9 5.1 5.0 5.0 5.0
Lithuania 2.8 2.7 2.7 2.9 2.8 2.6 2.8 2.9 2.9
Luxembourg 7.3 7.1 7.1 7.1 7.1 7.1 7.1 7.0 7.1
Hungary 6.2 6.2 6.4 6.5 6.7 6.9 6.7 6.8 7.0
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GEO/TIME 2005 2006 2007 2008 2009 2010 2011 2012 2013
Malta 15.0 15.1 15.5 13.7 15.0 16.2 16.5 17.2 18.1
Netherlands 7.0 7.1 7.2 7.3
Austria 11.3 11.5 11.6 11.7 11.9 11.9 12.0 12.3 12.6
Poland 2.9 2.9 2.8 2.8 2.8 2.8 2.8 2.9 3.0
Portugal 10.6 10.6 10.6 10.2 10.6 10.6 10.6 11.0 10.4
Romania 5.2 5.5 5.0 5.2 5.9 3.3 3.4 3.3
Slovenia 6.5 6.4 6.8 7.1 6.9 6.6 6.4 6.8 6.9
Slovakia 6.7 7.3 6.8 6.5 5.8 5.7 5.5 5.4 5.4
Finland 6.7 6.7 6.7 6.6 6.4 6.3 6.3 6.3 6.3
Sweden 5.0 5.1 5.2 5.5 5.5 5.5 5.7 5.7 5.9
United Kingdom 10.1 9.9 9.8 9.6 9.2 9.2 9.6 9.6 9.6
Iceland 7.8 8.0 8.1 7.8 7.8 8.1 8.2 8.4 9.3
Norway 5.4 5.7 5.8 6.0 5.8 5.7 5.8 5.9 6.0
Former Yugoslav Republic of Macedonia 3.7 4.2 3.8 3.1 3.4 3.3 3.4 3.2 3.4
Serbia 2.8 2.8 2.7 2.5 2.3 2.3 2.3 2.2 2.2
Source: Eurostat database.
The highest share of household expenditures on hotels and restaurants in total household consumption expenditures is observed in Malta (between 15.0 and 18.1 percent), Cyprus (between 13.7 and 16.4 percent), Ireland (between 12.7 and 14.3 percent), Greece (between 11.8 and 12.9 percent) and Portugal (between 10.2 and 11.0 percent).
The lowest share of household expenditures on hotels and restaurants in total household consumption expenditures is observed in Serbia (between 2.2 and 2.8 percent), Lithuania (between 2.6 and 2.9 percent), Poland (between 2.8 and 3.0 percent), Al-
bania (between 2.8 and 3.4 percent) and Former Yugoslav Republic of Macedonia (between 3.1 and 4.2 percent).
The percentage of expenditures on hotels and restaurants in total household consumption expenditures in particular countries is rather stable in time.
Household expenditure on hotels and restaurants is a sum of expenditure on catering services and accommodation services. Table 2. shows percentage of household expenditure on catering services in expenditure on hotels and restaurants in the span of 2005-2013.
Table 2 - Percentage of household expenditure on catering services in expenditure on hotels and
restaurants.
GEO/TIME 2005 2006 2007 2008 2009 2010 2011 2012 2013
Belgium 91.4 89.5 89.5 87.7 87.7 87.5 87.7 87.7 87.7
Bulgaria 65.3 61.3 60.7 58.9 62.1 63.3 72.7 74.0 71.8
Czech Republic 75.3 75.3 73.5 75.0 74.1 72.8 71.8 72.8 73.2
Denmark 83.0 83.3 82.1 83.9 83.6 83.3 85.5 85.7 86.0
Germany 84.0 82.4 84.6 82.7 82.7 82.7 82.7 81.1 83.0
Estonia 74.3 75.4 76.8 74.2 75.4 73.8 73.2 73.6 78.1
Ireland 90.3 89.9 89.8 88.3 88.7 89.5 89.4 88.8 88.8
Greece 85.1 85.1 85.1 85.1 85.1 85.1 83.9 82.8 82.2
Spain 89.7 90.1 90.5 90.8 91.8 92.3 92.4 92.2 92.2
France 80.0 78.8 78.8 76.9 79.7 79.7 78.5 78.5 78.5
Italy 75.0 75.3 74.7 75.8 76.6 76.6 75.5 75.8 76.8
Cyprus 52.3 53.3 54.4 54.7 58.6 58.7 55.8 55.1 52.4
Latvia 86.1 84.5 79.0 78.9 79.6 80.4 80.0 78.0 80.0
Lithuania 71.4 74.1 74.1 82.8 82.1 76.9 82.1 79.3 75.9
Luxembourg 75.3 74.6 73.2 74.6 76.1 74.6 74.6 75.7 76.1
Hungary 79.0 77.4 78.1 80.0 82.1 82.6 82.1 82.4 80.0
Malta 62.0 62.9 63.9 59.9 66.0 66.0 64.8 64.5 64.6
90 Quaez and Prance Agricultural
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Continued
GEO/TIME 2005 2006 2007 2008 2009 2010 2011 2012 2013
Netherlands 81.4 81.7 81.9 80.8
Austria 79.6 80.0 80.2 78.6 79.0 79.0 78.3 78.0 77.0
Poland 79.3 82.8 82.1 78.6 78.6 75.0 71.4 72.4 70.0
Portugal 80.2 81.1 81.1 80.4 80.2 80.2 79.2 76.4 79.8
Romania 53.8 54.5 58.0 55.8 57.6 42.4 41.2 42.4
Slovenia 75.4 78.1 75.0 76.1 75.4 77.3 75.0 75.0 75.4
Slovakia 91.0 90.4 89.7 89.2 89.7 89.5 89.1 88.9 88.9
Finland 92.5 92.5 92.5 92.4 92.2 92.1 93.7 93.7 93.7
Sweden 88.0 88.2 86.5 85.5 87.3 87.3 87.7 87.7 86.4
United Kingdom 86.1 85.9 84.7 85.4 85.9 85.9 83.3 83.3 83.3
Iceland 83.3 85.0 84.0 83.3 79.5 82.7 78.0 76.2 75.3
Norway
Former Yugoslav Republic of Macedonia 91.9 85.7 92.1 96.8 91.2 93.9 97.1 96.9 97.1
Serbia 75.0 71.4 74.1 72.0 73.9 73.9 73.9 77.3 77.3
Source: Own calculation based on Eurostat database.
In the majority of European countries household expenditures on catering services are higher than expenditures on accommodation services. The highest share of catering services occurred in Former Yugoslav Republic of Macedonia, Finland and Spain (above 90 percent), in Slovakia, Ireland, Belgium, Sweden, United Kingdom, Greece, Denmark, Ger-
many and Netherlands (between 80 and 90 percent).
Further analysis (figure 1.) shows that there is no significant relationship between percentage of expenditure on hotels and restaurants and catering services in total consumption expenditures and the level of GDP per capita in European countries.
80 000
I1GDP per capita in PPS (additional axis)
-Expenditure on hotels and restaurants in total consumption expenditure (in %} -Expenditure on catering services in total consumption expenditure (in %)
Figure 1 - GDP per capita in PPS and share of expenditure on hotel and restaurants and catering services
in total household consumption expenditure in 2012.
Source: Eurostat database.
Higher percentage of expenditure on hotels and restaurants and catering services weren't observed neither in the countries of the highest GDP per capita nor in the countries of the lowest GDP per capita. It can be maintained that differences between countries in their preferences about household expend-
iture on hotels and restaurants are so crucial, that dissimilarity of income is becoming insignificant.
Conclusions
European countries differ in the percentage of expenditure on hotels and restaurants in household
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total consumption expenditure as well as in the expenditure on hotels and restaurants structure. Differences in preferences between countries are much more important that differences in GDP per capita.
High percentage of expenditure on hotels and restaurants in total household consumption expenditure are observed as well in high GDP countries as medium and low GDP countries.
REFERENCES
1. Keynes J. M. The general theory of employment, money and interest. 1936 URL: http:// cas.umkc.edu/economics/people/facultypag-es/kregel/courses/econ645/winter2011/gen-eraltheory.pdf (download time: 26.09.2015).
2. Nicolau J. L., Mas F. J. Simultaneous analysis of the decisions to go on holiday and vacation expenditures // El comportamiento de la emresa ante entornos dinamicos: XIX Congreso anual y XY Congreso Hispano Frances de AEDEM. 2007. Vol. 1. PP. 7-17.
3. Radziukiewicz M. (2012). Zmiany sytuacji do-chodowej a wydatki na ustugi w polskich gos-podarstwach domowych // Konsumpcja i Ro-zwój. 2012. № 1. (2). PP. 101-116.
4. Utzig, M. Zaleznosc mi^dzy przychodami a strukturq konsumpcji gospodarstw domowych w Polsce // Roczniki Naukowe Stowarzysze-nia Ekonomistów Rolnictwa i Agrobiznesu. 2011. № 13 (2). PP. 509-514.
