Barclays has reported spending on travel by UK consumers has fallen for the first time in five years, as the war in Iran continues to impact the economy and international tourism infrastructure.

According to the bank, overall spending on travel fell by 3.3 percent last month, however card payments for UK breaks were up 1.2 percent, as travellers opt to spend their holiday period closer to home.

“Shoppers delaying major purchases and building up a savings buffer in response to the shock from the Middle East reinforces our view that activity will be muted in the coming months,” said Barclays chief UK economist Jack Meaning.

The bank’s head of retail, Karen Johnson, added: “March’s figures may highlight some differences between how consumers feel and how they actually spend.”

“Many are once again carefully managing their money while finding ways to prioritise the things that matter the most to them – an ongoing balancing act.”

Speaking to the BBC, Blackpool hotelier Paul Gregory-Ward said “people are holding back” already as “they are just not sure where the economy is going.”

“The only way we’re going to get through it is by offering the right prices without being undervalued to ourselves and being fair to the guests. It’s a fine line.”