Property investors with buy to let holiday homes will have seen a surge in bookings due to more people deciding on a ‘staycation’ this year claims a holiday lettings company.

Wight Locations on the Isle of Wight reported a 32 percent rise last year, and has already seeing a further 10 percent increase in 2010 and its boss thinks this is because of a major change in the way people holiday.

“Last year people almost stumbled into a UK holiday, mainly fuelled by two things; the recession and a rocketing Euro,” said Mark Curtis, managing director of the lettings company.

“In 2009 holiday makers were looking for value for money from their UK break, that is why the self catering and camping sectors performed so well. People were still determined to get away but were being more careful with their money.

“I’m encouraged we are now seeing this momentum continue. If things keep going the way they are bookings in 2010 will be another record.

“If as an industry we can ensure people have another great experience then there is every chance we will have convinced them to look on the UK as their number one holiday choice - which would be a major achievement.”

Curtis does warn there are still challenges for holiday homeowners such as people are leaving booking until the last minute, which means the industry must be able to react quickly.

He added: “Another is that the pound has grown in strength against the Euro and it may well continue to do so once the uncertainty of the election is over and the new government takes steps to reduce public debt.

“Many countries in the Eurozone, particularly Spain, have also been marketing themselves aggressively and reducing prices to make them more competitive.

“But overall I am convinced the UK tourism industry is in for another good year.”

The comments from Curtis mirror the findings of a recent Marketplace Report by holiday rentals specialist HomeAway UK that found 89 percent of travellers surveyed plan to stay in a rental in 2010.