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25/08/2011 14:27:13

Holiday spending habits changing due to financial pressures, R3 reports

People are changing their holiday destination or spending habits in order to save money, according to a report by the insolvency trade body, R3.

The survey found that 66 per cent of people are opting for a cheaper travel destination, while 60 per cent are reducing their activity and dining budgets, and 59 per cent are staying in the UK in a bid to make savings.

Frances Coulson, R3 president, said: "It's unsurprising that people are choosing to stay at home instead of holidaying abroad to cut down on their expenditure, given that we have seen consumers' disposable income become squeezed as a result of inflationary pressures."

Some 30 per cent of Britons are choosing to forgo their holiday altogether, while five per cent admit to borrowing in order to pay for their break.

Mr Coulson warned people who are paying for holidays with credit cards or loans that they should be aware of paying high rates of interest.

The BBC reported the tourist industry in the UK is benefitting from pressures on personal finances as the April Bank Holiday was the best it has been in five years in terms of visitors to hotels, restaurants and tourist attractions.