RACV's annual online Travel Intentions Survey found that that 41 per cent of 500 respondents expected to be travelling within the state these holidays, a significant increase from 24 per cent in last year's survey.

The survey showed that most of this increase was the result of less people intending to travel interstate, 46 per cent this year compared with 58 per cent previously.

Only 13 per cent of respondents planned to travel overseas.

RACV Tourism and Travel general manager Neil James said regional tourism operators could be the big winners this year as holidaymakers look to more local and affordable options.

"When we asked our members and the public about the impact of petrol prices on their holidays, 72 per cent said there was some or great impact," he said.

"When compared to last year's 47 per cent, it's clear that people are more careful about the overall cost of their holiday plans, particularly when 73 per cent of people plan to drive for at least part of their holiday.

"Asked how they would adjust their holiday plans to cope with increased costs, 49 per cent of the 500 respondents said they would have less spending money available, 35 per cent said they would go away for a shorter time and 31 per cent said they would travel shorter distances."

Mr James said the shift to holidaying closer to home could provide a much-needed injection of cash into the Victorian economy and could help reinvigorate interest in some of the local tourism destinations.

Meanwhile Hepburn Regional Tourism Association president Carol Hulst said the survey results were "obviously good" for the shire.

"We find that because we are just one hour from Melbourne, even in tough times, we can still attract the visitors," she said.

"I imagine that we are all in a bit of downturn at the moment but people still want to go somewhere.

"And I think it will dip back up when people are not so nervous."