Independent insolvency firm Begbies Traynor said it had recorded falling levels of financial distress in the wake of the June vote to leave the EU.
An ensuing weakening of the pound against both the euro and the dollar means a visit to the UK by overseas tourists is now considerably cheaper.
This has had a positive impact on businesses in the sector with companies reporting significant financial distress in Q2 2016 in the hotel and accommodation sector falling 4% to 3,382 companies, a 3% drop in the leisure and cultural acitivities sector to 5,464 and a 4% drop in the travel and tourism sector to 3,791 companies.
Begbies Traynor also warned against the damage done in the other direction, with the weakening pound adding £245 to the cost of an average European trip for a British family.
As a result the number of travel agents suffering from significant financial distress has risen in Q2, 2016, by 2% to 921.
Begbies Traynor partner Julie Palmer said: “Despite the typically unpredictable British weather over the past three months, our data shows that levels of ‘significant’ financial distress actually decreased across all key sectors of the UK tourism industry in the lead up to the Brexit vote, suggesting the sector is in rude health ahead of its vital summer season.
“Since then, while most sectors of the economy have started to batten down the hatches to wait for the Brexit storm to blow over, in contrast the UK’s domestic travel and tourism industry is expected to be one of the first sectors of the economy to see tangible financial benefits from the Referendum result.
“The significantly weaker pound has already made international travel for British families so much more expensive, which should encourage more to favour staycations on home soil.
“Meanwhile currency fluctuations have also made travel to the UK from Europe and the US in particular more affordable, helping incoming tourists to get a lot more bang for their buck.”
