While a number of indicators suggest the global tourism sector is in for a tough ride during 2012, there is optimism that domestic tourism in the UK will again prosper.

According to the World Travel Market (WTM) 2011 Industry Report, 38 per cent of Brits did not have a holiday during 2011. The weak pound, the government's austerity measures, the increased cost in flying and the real-term cuts in earnings combined to create a 'perfect storm' to deter travellers from holidays abroad.

This has resulted in Brits taking more domestic holidays, with VisitEngland figures showing that in July 2011 alone, the number of domestic overnight trips taken in England was 11.6 million - a 12 per cent increase on July 2010.

VisitEngland's research also reveals that 70 per cent of the population are planning a domestic break in 2012, with on to three-night breaks being the most popular choice,.

WTM director Fiona Jeffery said: "The findings confirm yet again that UK holidaymakers are reassessing how they spend what little money they have, and that government and local tourism taxes are compounding the current economic difficulties."

James Berresford, CEO of VisitEngland, added: "The staycation trend has showcased England to a wide range of people who may not have otherwise chosen it as a holiday destination.

"It is vital that we continue to work hard to keep this trend buoyant, and take full advantage of England being placed firmly at the centre on the world stage in 2012."

Earlier this month, VisitEngland confirmed that it had been given an additional £19.8m grant from the Regional Growth Fund (RGF) to promote domestic tourism.