There is also evidence the UK holiday boom is over, with resorts saying they have the normal level of vacancies in the peak month.

Here is the news affecting travel on Friday 5 July.

UK will be in recession next year

The Bank of England has warned the UK will fall into recession as it raised interest rates by the most in 27 years. The economy is forecast to begin shrinking later this year until the end of 2023. Interest rates rose to 1.75% as the Bank battles to stem soaring inflation, now set to hit over 13%. Soaring energy bills, due to Russia’s invasion of Ukraine, is driving inflation, with households paying almost £300 a month for their energy by October. (BBC)

Households to face ‘biggest income squeeze on record’

Bank of England governor Andrew Bailey said families faced a "very big" shock to their finances due to rising energy bills. The Bank’s bleakest set of forecasts since the pandemic predicted the largest hit to real household incomes since records began in 1963, with a fall of 3.7% across 2022 and 2023. (Daily Telegraph)

Staycation boom ‘is over’ say tourism chiefs

The holiday at home boom is over, tourism bosses have said, blaming “staycation fatigue” for a slump in bookings at even the most popular UK destinations. Covid restrictions on international travel meant last year was a bumper year for hotspots such as Cornwall, but “catch up consumers” are heading abroad in huge numbers. (Daily Telegraph)

Briton killed in Marmaris boat collision

A British woman was killed and her husband left in critical condition after a speedboat crash in front of horrified tourists at a Turkish beach resort. Anna Capuano, 45, died when the small pleasure craft she was riding in collided with a fast-moving sea taxi off Marmaris near the Elegance Hotel. (The Sun)