This is according to ABTA - The Travel Association, which issued its statement shortly after chancellor George Osbourne's spending review.
Luke Pollard, ABTA's head of public affairs, said that despite consumer confidence having been dealt a blow by the cuts, which will see many evaluate how much they spend on their annual holiday, the travel industry "needs not to be too pessimistic".
"Yesterday we heard from Douglas McWilliams, founder and chief executive of the Centre for Economic and Business Research at our Travel Convention in Malta," he commented.
"He predicted that while the economy in the UK means British disposable incomes will be suppressed in the immediate future, current austerity will force consumers to spend smart in order that they can continue to have money for 'new' essential items such as travel."
In its Consumer Trends survey published earlier this week, ABTA revealed that more than half (52 percent) of those who booked an overseas holiday in the past year had done so through a travel agent or tour operator.
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