Unused holiday is saving businesses an impressive £4 billion a year, with as many as 63 per cent of senior executives admitting they will not use their full allowance in 2007.

The survey, by the Chartered Management Institute, revealed that despite the failure of managers to get away, an overwhelming majority strongly believe that holidays help them ‘recharge their batteries’ and when executives do manage to take time out from the daily grind, far-flung holiday destinations is the goal.

The Greek Islands, Caribbean, Australia and Canada are amongst the favourite holiday hotspots. Excessive workloads are blamed for failure to get there for one third of respondents. Some also admitted it was down to ‘poor personal planning’ and ‘enjoyment of work’.

In a further sign that workload pressure is adding to the failure of executives to take holidays, 28 per cent admit to working whilst on annual leave in an attempt to reduce pressure when they return.

Despite the findings, two-thirds of managers back the call by union body the Trades Union Congress for the additional bank holiday in October.

The survey authors also suggested that the majority of managers who do get away are guilty of ignoring their carbon footprint. Seventy two per cent will not change their travel plans to help the environment. A small minority, 14 per cent, claimed they will no longer travel by air. Just 19 per cent offset their flights, or wider travel arrangements.

Jo Causon, director, marketing and corporate affairs at the Chartered Management Institute, said: “Taking time off for a proper break is not a sign of weakness, so individuals should be encouraged to use their holiday entitlement to the full. With growing numbers also keen to offset their travel arrangements, perhaps employers could consider carbon offsetting as an option for employees looking to exchange unused holiday time.”