The British public is spending an increasing amount of money on leisure pursuits.

The British Lifestyles 2007 report suggests that holidays are now the number one priority for adults, with one in four (23 per cent) planning a foreign holiday and 22 per cent choosing a short break this year.

In 2006, spending on overseas holidays (£23.8bn) increased by 28 per cent on the previous year, with long-haul foreign holidays proving the fastest growing travel sector. Between 2002 and 2006, spending on holidays rose by 41 per cent to around £8bn.

In addition, domestic holidays (£9.8bn) have regained popularity over recent years, with sales growing 20 per cent in the past four years.

The restaurant and eating out sector has also picked up steam in a market now worth £17.7bn – up 18 per cent on 2002 – with the launch and expansion of gastro pubs and specialist fast food outlets, such as Gourmet Burger Kitchen, Sea Cow and Canteen. In the next six years, this market is likely to grow by 27 per cent.

Although eating out has become more popular, people are increasingly drinking expensive alcoholic drinks such as champagne and cocktails at home. Retail sales of wine and champagne (now worth more than £10.2bn) have jumped 26 per cent in the four years since 2002, while sales of spirits and liqueurs have risen 16 per cent.

Retail analyst Neil Mason said: “Whether people’s finances and the economy will allow Brits to continue prioritising holidays and eating out over day-to-day essentials, such as loan and mortgage repayments, is the current hot topic among economists.

“Rising interest rates and mixed messages about the housing market have, as yet, failed to dampen consumer spending in the high street. But a degree of caution is creeping into the consumer economy, which means we’re likely to see a slower rate of growth in the medium term.” Details: www.mintel.com