More overseas travelers are choosing to holiday in cheaper destinations rather than the UK due to the credit crunch, according to UKinbound. The trade association also raised its concern that while with Britons continue to travel abroad for the summer, the UK tourism deficit, will continue to grow.

The view has been supported by a survey, carried out by TripAdvisor, which found that 41 per cent of people worldwide said that rising prices and fuel costs effected their travel plans this summer, while only 21 percent of Britons changed their travel plans.

Stephen Dowd, chief executive of UKinbound, said: "The survey shows there is little chance of UK citizens taking fewer trips abroad, so in order to mitigate the effects of the credit crunch and reduce the tourism deficit we need a real push to make the UK more attractive to overseas visitors.

"This has to mean a change in Government policy and a reduction of the barriers which currently deter tourists from visiting the UK. "