Jonty
Average spend of a couple on holiday abroad including flights is £3000, aside from air fares, all the money is spent in a foreign country. IF people stay in UK then Govt views it they will spend it in UK and UK VAT is 20% so tax man will be happy. In addition it will provide jobs and income in UK. £2000 spent in Uk holiday area is probably worth £5000 to the local economy, hence why Govt will be glad as it provides jobs and stops money leaving the UK.