Staycations are in: UK tourism industry set to be the first to benefit from last month's Brexit vote

 
Francesca Washtell
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BRITAIN-WEATHER
Oh we do like to be beside the seaside (Source: Getty)

It might be time to get your bucket and spade ready: the UK's tourism industry is set to be one of the first segments of the economy to benefit from last month's Brexit vote as "staycations" prove they're here to stay.

The drop in Sterling since the Brexit vote will add momentum to the domestic tourist economy, business recovery group Begbies Traynor's said today, driving further growth in a sector that was already in a state of "improving financial health" in the three months leading up to the referendum.

"The significantly weaker pound has already made international travel for British families so much more expensive, which should encourage more to favour staycations on home soil," Julie Palmer, partner at Begbies Traynor, said.

"Meanwhile currency fluctuations have also made travel to the UK from Europe and the US in particular more affordable, helping incoming tourists to get a lot more bang for their buck."

Read more: Last month's Brexit vote has put European tourists off visiting London

Figures released earlier this month by TravelSupermarket estimated the ten per cent drop of the pound against the euro will mean an average family will have to pay an extra £245 for a European holiday.

In the second quarter of this year, "significant" financial distress among UK hotels and accommodation fell four per cent (down to 3,382 struggling companies) and fell by a further four per cent within the wider British travel and tourism sector (3,791 companies), according to Begbies Traynor.

Some UK travel and activities firms are already feeling the benefit of the Brexit vote.

Last week, GO Outdoors said its camping gear sales had increased 53 per cent year-on-year since 23 June, while tents alone were up more than 34 per cent.

Read more: This county is a surprise top European tourist destination this summer

Meanwhile, Britons also forked out significantly less than usual for travel insurance in June, PayTooMuch.com said today.

"June is usually a stronger month for travel insurance sales than May. However, June 2016 sales were significantly less than predicted, and in fact just undershot May's sales. It's likely that June sales were about 10 per cent lower than they would otherwise have expected to be," managing director Michael Ward said today.

"My estimate is that between 10 to 15 per cent of travellers have been put off going abroad at the moment," says Ward.

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