Brits 'spending £64bn on holidays every year'

Taking holidays has become such an important pastime for British people that some £64 billion is spent on the pursuit every year, according to research.

Private bank Cater Allen found that around one in five British people spend more than £2,500 on holidays every year and 32 per cent splash out more than ten per cent of their annual income on travelling.

Star appeal appears to be an important factor in holidaymakers' willingness to pay up to visit glamorous places, with more than a third of people admitting that they would be more attracted to a destination if it was known as a celebrity hotspot.

With locations such as Saint Tropez, Rio de Janeiro and Dubai becoming increasingly popular, holidays are now the most important expense to British people after buying a home and investing for the future, according to the survey.

Cater Allen's research found that the two preferred methods of spending while on holiday are by cash (79 per cent) and debit card (41 per cent).

A recent survey by the BBC found that more than a third of British people still plan to take their annual summer holiday regardless of the credit crunch and nearly half will not be swayed in their travel decisions by the strength of the euro.

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