Australia’s hospitality sector experienced a spending surge in July, with new data showing restaurant and dining expenditure jumped 1.5% for the month as major sporting events drew consumers back to venues and experiences.
The Commonwealth Bank’s Household Spending Insights Index revealed that hospitality was among the top-performing categories in July, benefiting from increased consumer activity around the British & Irish Lions rugby tour and the State of Origin decider. The hospitality sector’s strong performance contributed to an overall 0.8% rise in the spending index for the month.
“The British & Irish Lions rugby tour and State of Origin decider helped boost spending in July as fans spent up on travel, entertainment and accommodation,” said CBA senior economist Belinda Allen.
The July results continue a positive trend for the hospitality industry, which has seen spending grow 10% over the past year, making it one of the strongest-performing categories alongside recreation and communications.
Restaurant operators and hospitality businesses are benefiting from a broader shift in consumer behaviour. “Strong growth in spending on recreation and hospitality over the year underscores that consumers are prioritising experiences and being deliberate about their spending choices,” said Allen.
The spending boost comes as consumer confidence shows signs of strengthening after months of cautious spending behaviour. The consistent growth over the past five months suggests diners are becoming more willing to return to restaurants and hospitality venues, supported by rising real disposable incomes and a resilient labour market.
Looking ahead, the hospitality sector could see further tailwinds as economists predict additional interest rate cuts, with the Reserve Bank of Australia expected to lower rates once more in November. Lower rates typically boost consumer confidence and discretionary spending, which could provide additional support for restaurant and hospitality businesses.
Based on the Commonwealth Bank’s Household Spending Insights Index data for July 2025.
