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Despite Slowing Economy 'Super Rich' Continue to Spend

NEW YORK, Jan. 31 PRNewswire — Despite continued news of a looming recession, 80.3 percent of the "Super Rich" (consumers with net worth of $30 million plus) will increase their spending on luxury goods and services. This is according to the Elite Traveler/Prince & Associates 2008 Affluent Consumer Spending Survey conducted January 10-18, 2008. The survey polled a panel of more than 600 affluent consumers who had a net worth of at least $1 million. Overall the wealthy expect the economy to worsen in 2008. However, 84 percent of the Super Rich said the current economic environment represents an investment opportunity, and they will continue to spend more on luxury products and services and increase donations to charitable organizations more than ever before. The survey also reports that affluent consumers have little faith in the government's ability to "fix" the present economic situation.

Consumers with Net Worth Less than $10 Million Plan to Cut Back in 2008

The survey revealed that 58.2 percent of "Rich" consumers (those with a net worth from $10 to $30 million) will increase their spending on luxury goods and services. However, 21 percent of consumers with a net worth of less than $10 million plan to decrease their spending on luxury goods and services.

"The Elite Traveler Affluent Consumer Survey further confirms that the Super Rich remain insulated from the economic woes that have forced even the mass affluent consumer confidence levels to an all time low," said Douglas Gollan, president and editor-in-chief of Elite Traveler and co-author of The Sky's the Limit, Marketing to the New Jet Set.

Does cost matter? As expected, the Super Rich are not price sensitive as only 7.4 percent report an increase in the cost of luxury products as playing a role in their purchasing decisions. However, almost half of the Mass Affluent consumers surveyed said cost is a deciding factor when purchasing luxury goods and services in this current uncertainty.

Although most consumers shop around to find the best deal when purchasing an expensive product, that rule does not seem to apply to the Super Rich. Less than 10 percent of Super Rich consumers said they would take more time to purchase a luxury product this year but would otherwise make speedy impulse purchases. Twelve percent of Rich consumers reported an increase in the time they would take to make a luxury purchase, while 34 percent of Mass Affluent consumers would spend more time making a purchase as they balance economic uncertainty and higher costs for everyday expenses.

For the Super Rich: It's Better to Give

Nearly 70 percent (69.1 percent) of the Super Rich say they will increase their charitable giving this year, realizing their support is needed now more than ever to offset cut backs from those who have felt the pinch from a weakened economy. At the same time, 47.6 percent of the Rich will increase their charitable giving. Only 13.9 percent of the Mass Affluent will give more in 2008.

"With the Super Rich increasing their charitable giving, the good news for luxury providers is that the Super Rich believe it is O.K. to reward themselves by continuing and in fact increasing their spending on watches, jewelry, luxury autos, fashion and the like," said Gollan.

About Elite Traveler

Established in 2001, Elite Traveler is the private jet lifestyle magazine. Its award-winning format brings to life the latest in travel, fashion and private jet lifestyle for its wealthy readers. Elite Traveler has worldwide distribution aboard private jets and mega-yachts. Elite Traveler has a BPA audited circulation with a readership of over 575,000 readers per issue in more than 100 countries; its readers are wealthy and influential, with an average household income of $5.3 million.

About Prince & Associates, Inc.

Prince & Associates, Inc. is the leading research and consulting firm to the high-net-worth and their advisors. Russ Alan Prince, President of Prince & Associates, Inc. is the author of more than 35 books on private wealth and is a highly sought counselor to elite financial practitioners.

Media Contact: Natalie Martinez/SuJin Oh, MMG Mardiks 212.219.0759, ext: 6774/6771 nmartinez@mmgmardiks.com/soh@mmgmardiks.com

SOURCE Elite Traveler