Britons took fewer trips last year than at any time since 2001 and spend on overseas travel was less than in 2005, according to a new report from market intelligence provider Key Note.
It found that money spent on UK travel and tourism fell by 5.5% in 2009 to £70.17bn, and the number of bed nights dropped by 6.4% to 1.24 billion.
Package holidays were worst affected, falling by 19% from 2008 levels; the number of independently arranged holidays fell 13.2%.
However, the UK domestic market enjoyed a boost as the number of trips and bed nights rose compared with the previous year.
The number of inbound holidaymakers rose 4.6% but there were 19% fewer inbound business trips, according to Key Note, which was the largest decline for more than a decade.
Looking at early indications of market trends in 2010, Key Note forecast gains made in the UK domestic market would be maintained.
For example, in the first three months of 2010 showed a 3.8% increase in the number of trips made from 21 million to 21.8 million; a 0.7% increase from 55 million to 55.4 million in the number of bed nights; and a 2.4% increase from £3.38bn to £3.46bn in expenditure compared with the same period in 2009.
However, it warned this trend may be reversed after 2010, although the London Olympics is expected to provide a boost to domestic travel and tourism in 2012.
By Linsey McNeill
