Survey Reveals "Super Rich" Plan to Increase Spending by 55%

With no need to fear the slowdown in the economy, America's "Super Rich," those with a net worth of more than $10 million are expected to increase their spending this summer by 55 percent compared to 2005. According to the 2007 Elite Traveler/Prince & Associates Summer Spending Survey, beneficiaries of this accelerated spending include high-end watchmakers and manufacturers of designer apparel, accessories, and electronics.

According to the survey of 198 high net worth families conducted at the beginning of May, spending across 17 luxury categories will increase to $622,202 per household, from $399,187 during the summer period of 2005.

The survey reveals that 73 percent of those surveyed will buy luxury watches or fine jewelry, spending an average of $94,000; an increase of nearly 50 percent over summer 2005.

The report also shows that the three largest growth areas for increased spending are audio-visual products, up more than 121 percent; designer apparel and accessories, up more than 112 percent and luxury resort stays, up more than 78 percent. In these categories, the "average" Elite Affluent customer will spend $31,000 on electronics: $34,000 on apparel and accessories and $41,000 on luxury resort stays.

Projected expenditures on summer entertaining also registered big gains. More than 93 percent of the Elite Affluent will spend an average of $56,000 on entertaining. Sales of wines and spirits will also increase, reaching $17,000 (for personal consumption) and $24,000 (for social entertaining).

However, it's not just luxury items that will be receiving a boost this summer. Nearly 100 percent of those surveyed said they will be increasing their charitable giving in the coming months. Survey respondents will average $82,000 in contributions to their favorite charities this summer, a $30,000 increase over summer 2005.

"This survey underscores the spending power of the Super Rich and also reflects that this segment is not impacted by the ups and downs of the overall economy. In fact they are enjoying a very robust period," said Douglas Gollan, president and editor-in-chief of Elite Traveler. He added "Unlike Mass Affluent consumers who may splurge and charge up credit cards to buy jewelry or watches for the holidays, it is interesting to see that the Super Rich spend money on virtually every type of luxury good and service on a continuous basis."