UK’s tourism agency Visit Britain proposed the idea. Its acting head, Patricia Yates, told MPs on Tuesday that the the tourism industry had suffered losses as the coronavirus lockdown prevented travel during the two bank holidays in May.
Downing Street said the government was backing the tourism industry through this “challenging period” and would “respond in due course” to the idea presented by Visit Britain.
A spokesman said it was “worth acknowledging that extra bank holidays do come with economic costs”.
Ms Yates argued that the additional holiday in October would allow the UK tourism sector to prolong the season.
She added that the industry could not sustain itself with the changes throughout the pandemic.
She said it would be very difficult to calculate the amount of losses caused due to the lockdown.
She told the Digital, Culture, Media and Sport Select Committee: “Every time we do the modelling the figures get worse.
“So for inbound, I mean we were looking at the beginning of this year at about £26.6bn coming from inbound tourism, we reckon a £15bn drop on that.”
Ms Yates said an inquiry showed 74 percent of those who have a holiday plans for some time between July and September did not think they would take place.
UK Hospitality, the trade association that speaks for leisure companies from bars to hotels, agreed with the proposal, but issued a caution about the move.
Its chief executive, Kate Nicholls, said: “A bank holiday in October may provide a welcome boost for hospitality businesses, not least at a time when consumer confidence will hopefully be returning to healthy levels.
“However, we are still some way from knowing what the sector will look like.