VisitEngland reported an increase in the number of holiday trips in England by 3% and tourism spend by 10% in the first six months of 2011 compared with the same period last year.
However, a spokeswoman said that tourism establishments had not benefitted from the increased spend.
“The rise was really cancelled out by inflation and increased costs,” she said.
Bed and breakfast houses have suffered from a drop in bookings as people have booked alternative accommodation on line.
During April, holiday trips in England were up 8%, in part due to the royal wedding, but in May were down 8%.
VisitEngland has appointed a travel trade executive to encourage travel agents to sell more domestic trips.
