Labour has been warned that local businesses across the country could collapse if more is not done to protect the domestic tourism industry. Staycations in the UK dropped by 8% in 2024 in popular areas such as Cornwall and Devon compared to the previous year according to data from CoStar, and a campaign group has warned that the worst may be yet to come. A survey carried out on behalf of RSM UK on 1,000 consumers and published on January 4, 2024, suggested that less than a third (28%) of families planned a UK city break, and only 27% planned a longer domestic holiday, down from 40% and 35% in 2023, respectively.

Daniel Attwood, spokesperson for Back British Holidays, said "everything we have been warning may happen" is coming true. He told the Express: "UK adults are planning to cut their overnight spending on accommodation, eating out, and activities. And 25% will reduce the number of overnight trips they will take. This is exactly what we warned would happen."

Daniel explained that rising costs are preventing people from enjoying staycations across the country, despite the recent period of warm weather.

He added: "While visitor numbers have dropped, spending has increased. 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. And despite the recent weather, I think we're not going to see a break in that trend unless something urgent is done, and by that I mean Government action."

The campaigner called for Labour to invest in improving services like public transport to make staycations more accessible and enjoyable before "it’s too late".

He said: "Some of it is not a major financial cost, and some of it was already in the pipeline; it's just speeding that up. It's things like promoting domestic tourism, getting behind the industry that needs their help.

"Improving public transport, not just highways, but also public transport where people are on location. And giving the domestic tourism industry the support it needs. Don't leave until it's too late."

Looking to the future, Daniel warned that if the Government doesn't take on this advice, vulnerable coastal economies could be severely impacted. He concluded: "Worst case scenario, we're going to see businesses go under this year.

"We're talking not just about the impact on the local tourism, on the businesses that close, but the employment, the decline in business rates, all of the associated incomes that the tourist areas are reliant on, will start to reduce. It can very quickly become a snowball."

This comes after Labour announced cuts to red tape intended to bring down the cost of a staycation by making it easier for businesses to offer package deals.

The measures being looked at are still in the consultation phase, but if enacted, they could make it easier for businesses to "bundle offers together", helping hotels, attractions, and restaurants "team up to provide exclusive deals".

For example, campsites could offer discounts for local surf schools and B&Bs could team up with restaurants to offer a discount on dinner when purchased with the room booking.