The county was awarded silver at the prestigious awards ceremony at Battersea Evolution in London on Wednesday evening, missing out on gold to Cornwall.
Despite being knocked off its perch, silver is still being seen as a huge success by the county’s tourism chiefs given the stiff competition.
Nigel Jarvis, chairman of the Heart of Hadrian’s Wall Tourism Association said “This is such a wonderful result; thank you to all our visitors and everyone who voted.
“It's a great boost for everyone who contributes to Northumberland's wide ranging tourism offer and who calls this fabulous county 'home'. This makes Northumberland proud."
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David Hall, chairman of Northumberland Tourism, added: “This award acknowledges the great county that Northumberland is - its authenticity, its people and the amazing array of things to see and do.
“We at Northumberland Tourism work so hard to promote the county across the UK and beyond; the fact that the visitor economy has grown by 10.3% in the last three years is a testament to that hard work and also just how popular the county is to visitors who just keep coming back time after time.”
Following last year's win, Northumberland Tourism and Northumberland County Council launched a major social media campaign to encourage everyone who loves the county to get behind the award to place their votes.
Coun Cath Homer, cabinet member for Culture, Arts, Leisure and Tourism said: "This is truly fantastic news for Northumberland and we want to thank all those visitors, businesses and residents who took the time to vote.
"To be one of the top two best holiday destinations in the UK demonstrates the love people have for this amazing county and will allow Northumberland to continue to promote itself far and wide so that more people can start discovering the beauty it has to offer.
"This award is for everyone involved in the tourism industry and is a testament to their hard work and dedication."
The British Travel Awards have been running since 2008 and last year saw 334,522 consumers cast 753,938 votes across the 83 award categories.