Tourists take cheaper options as budgets thin

The latest Crossman Insights survey showed 55 per cent of respondents didn't intend to travel over the coming weeks due to financial constraints.

The findings were supported by mortgage provider Homeloans Ltd's Christmas spending survey, which found most Australians would not be travelling over the Christmas holidays.

National marketing manager Will Keall said, ''Staycations certainly seem to be the choice this year.''

But Eurobodalla tourism manager Catherine Reilly said tighter budgets were more likely to produce a different style of holiday rather than none at all.

While the Crossman Insights survey indicated those travelling expected to spend less - with 42 per cent ditching the motel in favour of staying with friends or family - Ms Reilly said certain businesses would be boosted by low-key revellers.

''We have seen in other times of low consumer confidence that the butchers do well and the take away bottle shops,'' she said.

Ms Reilly said global financial pressures had seen an increase camping numbers on the South Coast, which boosted trade for businesses such as outdoor suppliers.

Ms Reilly said summer spending was a major source of income for many of Eurobodalla's small businesses, but the Crossman Insights survey found that 42 per cent of respondents believed they would spend less than $1000 on all travel, accommodation, food and spending money for the entire travelling household.

Additionally, almost one in two families with children expected to spend $500 or less on the entire family getaway.

Ms Reilly said while the tourism industry tended to be resilient, summer spending would be essential for many traders this holiday season.

''For small businesses, it's a very important time of the year,'' she said.

''If they have a poor summer, it really impacts. They need this time of the year to make up [for winter losses].''

While spending figures may be in doubt, Ms Reilly said accommodation bookings were on par with last year.

''We actually have an undersupply of accommodation for the couple of intense weeks over Christmas.'' But the length of travel also appears to be changing, with 54 per cent of travelling respondents going away for a week or less.

Ms Reilly said accommodation providers had seen a trend over the past few years of people booking in for shorter stays.

''People are looking at a few days rather than a longer break. It's harder for accommodation services to manage, but they're becoming flexible because the market is changing.''