It is feared that the rise in the value of sterling could have a negative effect on levels of domestic tourism as more people start looking to holiday overseas, according to consultancy PricewaterhouseCoopers (PwC).

Following news that the pound has risen above US$1.60 for the first time since November 2008, David Trunkfield, director of PwC, said it is a "mixed blessing" with benefits for those people wishing to travel abroad but bad news for the domestic tourism sector. However, "The UK travel and tourism industry shouldn't panic just yet," he said. "While those still desperate for warmer climes and a change in culture are heading to medium haul, non-Euro zone destinations such as Turkey and Egypt, we still expect to see crowded UK beaches this year.

"Every consumer is a bargain hunter in a recession, choosing their destinations on the value of the pound and the cost of travel. In fact, we should see a flurry of late summer holidays as travellers sit tight waiting to monitor UK weather and currency."