Consumers escape "economic gloom" by going on holiday

Foreign holidays are considered a necessity rather than a luxury and people are prepared to make sacrifices to ensure they get a break, an expert has said.

The Association of British Travel Agents (ABTA) said the credit crunch has not affected consumers` travel plans and this summer`s bookings have been "very healthy".

Recent research carried out by ebookers and reported by Travelmole found over half of consumers considered a holiday as either important or necessary. Over half said the credit crunch would not affect their holiday plans.

Figures indicated people are cutting back on other expenditure by going out less, taking a packed lunch to work and buying fewer supermarket luxuries to fund their annual holidays.

ABTA`s Sean Tipton said it is the outcome of the "potentially quite depressing situation" the UK economy is facing.

"People are much more likely to cut back on other aspects of their life rather than forego a summer holiday," he commented.

The first four months of 2008 showed a five per cent rise in international tourism, according to the World Tourism Organisation.