Two in three families plan a summer staycation boosting UK tourism to £12billion The number of people staying at home this yearr has risen to 65 per cent Cornwall toppled from staycationers' top spot by London and Edinburgh The survey by hotel chain Travelodge says last year's Olympics helped By Sean Poulter, Consumer Affairs Editor Two-thirds of British families will holiday in the UK this summer amid a cost of living squeeze that means a foreign holiday is a luxury that will have to be sacrificed. The number of people choosing to holiday at home rose from 35 per cent to 41 per cent between 2011 and 2012, while the figure is put at 65 per cent for this year. Historically, Cornwall has always topped the staycation popularity list, but the survey claims it has been overtaken by London, Edinburgh and the Lake District. 'Staycationers' are snubbing Cornwall, left, in favour of destinations including Edinburgh, new research shows London, with sights including St Paul's Cathedral, tops a new poll of where those holidaying at home want to go The popularity of London was helped by the Olympics and pageantry around the Queen's Diamond Jubilee, however it is also a particularly expensive destination. A separate study published by the package holiday Thomas Cook suggests Britain is not the cheap option that many people believe. In terms of the cost of a shopping basket of typical holiday purchases, from a glass of wine to a meal and ice cream the UK is the second most expensive holiday destination behind Sydney, Australia. However, the survey did not include the cost of travel and accommodation, which is where people who stay at home and take day trips or short breaks make a big saving compared to a foreign package. The staycation research was commissioned by Travelodge, which has an interest in people staying in the UK, however it was based on an online poll of 3,000 people conducted by a third party company called OnePoll. The hotel chain claims that the surge in people taking a holiday at home will boost the UK tourism industry by £3.3billion compared to last year, taking the total to £12 billion. The charms of the Lake District mean that it is near the top of the list for those choosing to stay in the UK The study found that 42per cent of the staycationers will taking a one week holiday in the UK this summer, 15per cent are indulging in a two week break and a third will take three short domestic breaks. People in Wolverhampton, Liverpool, Cardiff, Chelmsford and Manchester were most likely to say they are holidaying at home this summer. Chief executive of Travelodge, Grant Hearn, said: "The staycation trend accelerating to record levels and boosting our economy by £12 billion this year, is a very welcome sign, and hopefully this is the start of our 2012 Olympics legacy gain. During 2012, our capital city was showcased in its true glory to all corners of the UK and the world, and it's a great result that London has been crowned as the top staycation destination for 2013. However, he said the government is failing to capitalise of the UK's tourism potential and suggested the Department for Culture, Media Sport, which is run by Tory Secretary of State Maria Miller, it at fault. The success of last year's London Olympics has encouraged more people to stay at home for their holiday He said: "We are not yet near to unlocking the true potential of our industry. British tourism needs to be treated like a serious business sector and the Government needs to move our industry from the ineffective Department of Culture Media & Sports to the Department for Business, Innovation & Skills. Lack of immediate action is costing jobs, growth and investment. The Thomas Cook study put the cost of a basket of holiday purchases in the UK at £125.74, which was the second most expensive behind the £157.96 for Sydney, Australia. The cheapest short-haul option was Tenerife at £47.28 for the same basket of goods. Tunisia came in at £52.86, while Egypt is also cheap at £54.07 and even Florida was much less than Britain at £59.25. The holiday companies have seen a big increase in the sale of all-inclusive packages, where all meals and drinks are included in the headline price, as a direct result of the squeeze on household budgets. Joanna Wild, the Thomas Cook retail director, said despite the nation's money troubles: "An overseas holiday offers exceptional value for money, whatever board basis our customers choose, given that prices in many resorts abroad are considerably cheaper than in the UK." She said all-inclusive deals now account for more than half of all holidays they sell and are particularly popular with families.