The nation spends an average of £22.5b per year on ‘staycations', according to new research from Barclays.
Barclays business data reveals turnover for small and medium-sized enterprises in the accommodation and food services sector is up 17% since 2009, the highest since its peak in 2006, as a result of the thriving staycation economy. More than three quarters of UK adults (77%) have been on or planned a UK staycation.
Research also shows the sector is the most volatile to seasonality, experiencing the highest turnover growth of any other sector during the months of July to September, 7.3% above its annual average.
Brits spend £575 per party on average, with people aged 55 and over budgeting £619 for a staycation break. The seaside is the most popular type of staycation, accounting for 52% of breaks, followed by holidays in the country (45%). A city break is chosen by one in three (37%) while 27% want to spend holidays staying with friends and family.
Caravanning is a popular UK holiday activity for one in five staycationers (17%) and is most popular with 18-34 year olds (20%) compared to 13% aged 55 and over.
Adam Rowse, head of business banking at Barclays said: "The staycation economy is a huge driver for businesses across the UK and with £22.5b spent on average every year, this presents business owners and the tourism industry with an opportunity to plan ahead to make the most of the rise in domestic tourism.
"We have seen a number of businesses adapt and diversify to make the most of seasonal tourism particularly during summer months. Great British landmarks hold pride of place in the nation's heart as drivers of regional tourism, while many accommodation businesses are catering for the nation's appetite for more unusual places to rest their head, such as a yurt or camper van."
The South West is the nation's favourite staycation spot, with a third (31%) of holidaymakers heading to the region for their breaks. The next most popular regions are Scotland (21%), and Wales (16%).
The findings also reveal three in five (64%) enjoy staying somewhere a bit more unusual than a traditional bed & breakfast or hotel. The most popular is a caravan or a tent, followed by a cabin and a canal boat; while a camper van also appeared in the top five. More quirky stays include a floating hotel or tree house.
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