Pontin's, the UK holiday company, today announced that it will create 2,000 new jobs and invest £50 million in refurbishment and expansion of its sites as cash-strapped Britons choose to holiday at home.

The company, which employs 800 people at six sites in the UK, plans to increase its staff to 2,000 by the summer period this year, rising to 3,000 in 2010, "with scope to go as high as 4,000".

The new posts will be across the business, from entertainment, including its "blue coats", to bar staff, catering, support services and construction workers.

The recession, and the effect on people's spending power, has been exacerbated by the pound's decline against the euro.

Ian Smith, the chief executive of Pontin's, said: "If people went abroad last year, they're staying at home now. With the standing of the euro and dollar against the pound, it's impossible for people to enjoy themselves if they go abroad.

"They can sit there all day with a glass of lemonade if they like, but I wouldn't."

The new jobs will be a mix of full-time, part-time and seasonal positions, and Mr Smith said that he would like to employ "as many as possible from the local areas" around their sites, but that "sometimes you have to bring the entertainment talent in".

Pontin's current talent stars include Joe Pasquale, the stand-up comedian and former winner of TV's I'm a Celebrity Get Me Out of Here!, and Duncan James, formerly of the boyband Blue.

Bananarama, the 1980s girlband, will also be appearing over Easter. Mr Smith said that he also hopes to see an increase in the live music, including "60s and 70s tribute bands".

The refurbishment plans will affect all of Pontin's six sites, with Pakefield in Suffolk seeing an expansion from 40 acres to 100 acres, which will double the accommodation available. The pitch and putt course will also be upgraded.

At Brean Sands in Somerset, and Prestatyn Sands in North Wales, the company hopes to improve amenities including the Queen Vic pub, the Lunars and Fun Factory – which feature live entertainment and bingo – and there is a plan to add new chalets. Mr Smith said that all this would be subject to planning issues.

The sites at Camber Sands in East Sussex, and Southport will be completely redesigned and rebuilt. Mr Smith said that these will be longer term projects and will be "much bigger issues for planning". He also said that the company hasn't ruled out buying new sites, and that "there is one possible relocation — Blackpool".

The holiday camp chain, which was started in 1946 by Sir Fred Pontin, is owned by Ocean Parcs, a consortium led by the former Pontin's chief executive Graham Parr with funding from Abbey.

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