Tourism could ride to the rescue of the Westcountry economy after figures revealed the sector is to grow rapidly over the next ten years.

A study by VisitBritain estimates the value of tourism is expected to shoot up by more than 60 per cent by 2020, making the sector worth £188 billion to the economy.

It spells good news for Devon and Cornwall, whose economic health is inextricably linked to the buoyancy of the domestic holiday market.

The number of jobs supported by tourism is predicted to increase by 264,000 to 2.89 million in the next ten years, VisitBritain predicted.

Domestic tourism has reaped the rewards of the "staycation" trend, with 25 per cent fewer overseas trips reported last year.

But Malcolm Bell, director of VisitCornwall, said there was no guarantee the growth of the sector would translate into a boom for the Westcountry.

He said: "There is a general feeling among economists that once people have got one car, or one fridge, or one washing machine, you don't need another. So you spend your money on entertainment or leisure.

"In the last 15 years we have acquired a lot of physical goods, so now we will be spending our money on tourism and recreation.

"The challenge surrounds where that money is being spent. Does it get spent abroad? Or does it get spent in emerging parts of the UK? There is a lot of competition for us."

The amount of spending per year by overseas residents is likely to almost double from £16 bn now to £31bn in 2020.

Only the financial and business service sectors are likely to grow faster than tourism over the next few years, said VisitBritain.

The report, by professional services company Deloitte and forecasting organisation Oxford Economics, calculated that the economic contribution home and overseas visitors make to the UK is £115bn a year.

The report said favourable exchange rates, the lure of the 2012 Olympics and the appeal of UK attractions should ensure the tourism sector grows at an above-average 3.5 per cent per annum between now and 2020.

But despite the optimistic forecasts, the report warned that Government intervention would be the key to success, as a range of market failures need to be tackled.

These included co-ordinating marketing to help small and medium-sized tourist businesses who cannot afford to do it themselves.