A thriving staycation economy is boosting small businesses around the country according to a new survey from Barclays Business, with more than three quarters of UK adults (77 per cent) revealing they have been on, or are planning a UK staycation.

Barclays business data reveals turnover for SMEs in the accommodation and food services sector is up 17 per cent since 2009, the highest since its peak in 2006.

Furthermore, the sector is the most volatile to seasonality, experiencing the highest turnover growth of any other sector during the months of July to September, 7.3 per cent above its annual average.

The research reveals £22.5bn is spent on UK staycations every year, with the Welsh spending £536 per party on average.

Men spend more than five per cent more than women, while those over 55+ budget £619 on average and are most likely to go away in September than any other month.

In the last five years the overall number of businesses in accommodation and food services in the UK has risen by 17 per cent.

The seaside is the most popular type of staycation for Welsh consumers with 53 per cent heading to be beside the sea, followed by a city break (40 per cent).

A country break is chosen by one in three (37 per cent). Caravanning is a popular UK holiday activity for one in five staycationers (17 per cent) and is most popular with 18-34 year olds (20 per cent) compared to 13 per cent aged 55 and over.

Furthermore, 13 per cent of Brits have a penchant to be pampered on a UK spa break – including one in 12 men (eight per cent).

When choosing where to go, famous landmarks and attractions (48 per cent) are the main draw for Welsh domestic tourists, followed by finding the best deal (44 per cent) – despite having a bigger budget, men are more likely to hunt for a bargain than women.

Other key factors when selecting UK holiday accommodation are online reviews (35 per cent).

Karen Thomas, head of Business & Corporate Banking for Cardiff and South East Wales, said: “The staycation economy is a huge driver for businesses across the UK and with £22.5bn spent on average every year, this presents business owners and the tourism industry with an opportunity to plan ahead to make the most of the rise in domestic tourism.

"We have seen a number of businesses adapt and diversify to make the most of seasonal tourism particularly during summer months. Great beaches, local landmarks and beautiful scenery are just some of the drivers of regional tourism, while many accommodation businesses are catering for the nation’s appetite for more unusual places to rest their head, such as a yurt or camper van.”

The South West is the nation’s favourite staycation spot, with 31 per cent of holidaymakers heading to the region for their breaks.

It is also the region with the highest turnover growth according to Barclays Business data. What’s more, 55 per cent of those living in the South West stay in the region for their holiday, rather than travelling further afield. The next most popular regions people visit are Scotland (21 per cent), and Wales (16 per cent).

With alternative accommodation on the rise, the findings also reveal 64 per cent enjoy staying somewhere a bit more unusual than a traditional bed & breakfast or hotel. The most popular is a caravan or a tent, followed by a cabin and a canal boat; while a camper van also appeared in the top five. More quirky stays include a floating hotel or tree house.