Up to 41 per cent of British adults are planning to spend their main holiday in the UK during 2012 - the highest level seen since the beginning of the recession in 2008.

The figures come from the Annual Holiday Index by budget hotel chain Travelodge, which questioned 5,000 adults in the UK.

With the average week's holiday in the UK costing £433.47, the study estimates the 'staycationing' effect is set to benefit the UK tourism industry by £8.7bn – up £1.5bn on 2011.

Grant Hearn, Travelodge, Chief Executive said: "The staycation is going to be bigger than ever this year despite British household budgets being attacked by a second recession.

"2012 is such a momentous year for British tourism and it?s a great bonus that the economy will be further boosted by ú8.7 billion due to more Britons holidaying at home this summer."