The rising cost of living in the UK is having a detrimental impact on domestic tourism, particularly in popular staycation destinations such as Cornwall and Devon. Recent data from CoStar indicates that there has been an 8% decline in staycations in 2024 relative to the previous year. This trend has raised concerns among local business groups, who are warning that without immediate government intervention, the viability of these enterprises could be at risk.

A survey conducted by RSM UK, which included responses from 1,000 consumers, revealed a significant decrease in the number of families planning domestic holidays. Just 28% expressed intentions to take a UK city break, while only 27% planned a longer staycation—this marks a decrease from 40% and 35%, respectively, in 2023. Daniel Attwood, a spokesperson for Back British Holidays, articulated these concerns in an interview with the Express, stating, “everything we have been warning may happen is coming true.”

Attwood highlighted that the rising costs are curtailing plans for staycations, even in light of favourable weather conditions. “While visitor numbers have dropped, spending has increased,” he remarked. “When you dig into it, what that’s telling us is prices have gone up, and people have been required to spend more to get the same activity. This is all leading to the continuing decline in domestic tourism.” He stressed that government action is imperative to counteract this trend, calling for initiatives to enhance public transport and promote domestic tourism to make staycations more accessible and appealing.

The campaign group is urging Labour to invest in infrastructural improvements that could ease pressures on local businesses. Attwood suggested that simplifying regulations could empower businesses to create exclusive offers for staycations, potentially revitalising the sector. He commented, “It’s not just about highways, but also public transport where people are on location.”

Looking ahead, Attwood warned of severe repercussions if the government fails to act. He said, “Worst case scenario, we’re going to see businesses go under this year.” He elaborated on the broader implications, noting that closures would affect employment, decrease business rates, and lead to a significant reduction in the income that local economies depend on from tourism.

The situation remains critical, with many stakeholders advocating for a robust response to support the struggling domestic tourism sector before it faces further decline.

Source: Noah Wire Services