Many young Austrians plan to fork out more on holidays

Almost one in three young Austrians plan to spend more on their holidays next year, a poll has shown.Insurance agency Generali, which spoke to around 1,000 Austrians, announced today (Tues) that 26 per cent of Austrians aged 30 or younger will increase their holiday budget in 2011 compared to investments on vacations this year.Only 19 per cent of all interviewed Austrians said the same. Twenty-three per cent of men of all age groups said they will fork out more on their holidays next year, while 17 per cent of women have the same plan.Holiday budgets top the chart when it comes to the question on what kind of services or products Austrians will spend more next year compared to their investments in the current year.Investments on living come second among men and women of all age groups ahead of expenditure on wellbeing / health products and services and sport activities.Research figures showing that Austrians will spend more on holidays in the new year come as a surprise as many economic experts predicted a reverse development due to upcoming tax increases.The joint federal administration of Social Democrats (SPÖ) and the conservative People’s Party (ÖVP) agreed to raise the tax on mineral oil products such as car fuel. The coalition also announced a new ticket tax will burden every plane ticket by eight to 35 Euros depending on the flight’s destination from April.Economists are at odds whether the tax increases will eventually help the government to more revenue. Some analysts warned an opposed development was likely as many poorly paid Austrians may save even more money to make ends meet.Austria has the fourth-highest per capita gross domestic product (GDP) among the European Union’s (EU) 27 member countries.Research agency RegioData said earlier this month it expected Austrians’ purchasing power to jump by 2.6 per cent year on year in 2011. The firm said this increase would mean people will have 450 Euros more available to spend – despite higher taxes and welfare spending cuts.