Rachel Reeves reacts to news of economy contracting in January
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Labour has been warned that they need to act fast if they are to prevent a catastrophic ￡23 billion blow to the British economy. Currently, the British domestic holidays sector injects ￡31 billion each year into the economy and sustains 300,000 direct jobs, along with an additional three million workers indirectly employed. However, this is on the decline and Out & About Live has launched a national campaign, Back British Holidays, calling for urgent government intervention to stem this and protect small businesses within the industry.
The organisation has published an extensive report revealing that the UK domestic holiday sector is predicted to see a 32% drop in overall trips, from 42.3 million in 2022 to just 28.8 million by 2025. This equates to a staggering loss of ￡23.2 billion in spending, jeopardising businesses, jobs, and potentially leading to an irreversible decline in UK holidays.
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A campaign group has warned that Labour must act now to save British holidays. (Image: Getty)
Back British Holidays warned that staycations are on the decline. (Image: Getty)
Back British Holidays spokesperson Daniel Attwood said campsites are being particularly hard hit, with some already a drop in bookings for the peak season.
He told the Express: "The decline has been much, much more significant than anybody expected. And it's continued. And now we're at a point where if action is not taken, we're going to start to see businesses going under."
Daniel called on the Government to increase and reinstate "support funds" for coastal and rural economies that will suffer the brunt of the decline.
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He continued: "The figures are stark. We're predicting that there's a danger to 300,000 jobs, and it's very, very difficult once a business goes under to re-employ those people in other areas.
"We're talking a lot of rural areas and tourism dependent areas, and if that drops off, it's pretty difficult to recover. That's why we're saying action now before it's too late."
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Daniel warned that the impact of this downturn is already severe, as rural areas are expected to suffer a 40.8% decrease in visitor numbers, putting local businesses at risk.
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Key sectors integral to British holiday culture, such as caravanning, camping and glamping, are forecasted to lose over ￡1.2 billion, marking a 39% decline in spending.
Coastal destinations are also set to lose over ￡700 million in revenue, while cities and large towns could face a significant loss of ￡2.7 billion an 18% decline.
Back British Holidays has now launched an urgent petition calling for further support to be extended to the staycation market to prevent it from "going extinct".