Travellers are expected to generate around £1.25bn for the UK economy over the upcoming long weekend, of which £1.1bn will be spent in England.
Around 5.1m people are planning an overnight trip, with 4.6m holidaying in England.
It marks a small rise on the 4.8m Britons who enjoyed a UK staycation over the August Bank Holiday in 2015.
VisitBritain director Patricia Yates said: “Record numbers of Brits have been taking holidays at home this year and with so much going on this summer the August Bank Holiday weekend is another chance to enjoy a great holiday whether on a seaside, countryside or city break.”
It follows growing numbers of people taking UK staycations in the first four months of 2016.
From January to April Britons took 11m trips in the UK – up eight per cent on 2015 – and spent £2.8bn.
Earlier this year accommodation providers anticipated a record-breaking summer season, with over half expecting a rise in visitors following the EU referendum.
Yates said that the weakened pound meant holidaying in the UK gave people ‘reassurance and certainty’ in terms of costs.
A separate study by BDRC Continental found that 77 per cent of travellers were wary of safety concerns when considering foreign trips, with nearly three quarters planning a short break of less than four nights in the UK.