The number of domestic holidays taken by Brits in July increased by two million, a 32 per cent rise on last year, according to figures released by VisitEngland.
The UK Tourism Survey also showed that outbound travel dropped by 17 per cent for the first six months of the year, after holidaymakers reacted to the weak pound and wider economic circumstances.
James Berresford, chief executive of VisitEngland said: “We are seeing people shun outbound travel and opting to take a break in England as they re-discover what there is on offer in this country, whether it be a relaxing long weekend in the countryside, an action-packed activity holiday for the family or a stimulating city break."
It was initially feared that July's wet weather would have forced UK residents abroad, but VisitEngland’s research shows that less than 1 in 10 people changed their plans to holiday at home.
Forward bookings for holidays in England for 2010 and 2011 are also up across many sectors of the industry, but the outlook remains bad for hotels relying on business traded. Overall, trips taken in the UK, including for business, holidays and to visit friends and family, has risen just 4 per cent so far this year.
Berresford said: “Overall growth has not been as strong as holiday growth alone, as business travel remains a sector that continues to suffer as businesses cut costs in the current economic climate.”