British people would rather cut back on major purchases such as cars and sofas in order to pay for their annual holidays in Spain, it has been claimed.

Frances Tuke, a spokesperson for the Association of British Travel Agents (Abta), said holidays had fared relatively well in other recessions and are seen as an important and often essential expenditure.

In a recent survey by TUI, 88 per cent of people said they would rather give up something else than sacrifice their foreign holidays.

"They are certainly an area where people don't want to cut back on, they'd rather give up a brand new sofa or car rather their holidays," she commented.

A survey carried out by Abta earlier this month found that 60 per cent of people are on an emotional high when they return from their holidays.

Further results show that almost of half of people think a holiday is necessary to get through the credit crunch doom and gloom.