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Mr Holmes has decided to step down from the party on Monday after a clash with his fellow MEPs.
The South West MEP said he had no confidence in the ruling executive.
He said: "Whilst the bitterness and the infighting seems certain to continue, the party is severely damaging its chances of conducting a successful campaign for the UK's political withdrawal of the membership of the EU.
 Michael Holmes resigned after a clash with his fellow MEPs
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In a joint statement the other two UKIP MEPs, Nigel Farage and Jeffrey Titford, said if Mr Holmes was resigning from the party he should also resign his European Parliament seat.
Their statement said: "UKIP is the only vehicle through which to achieve our independence and the party will continue to prosper without Mr Holmes.
"We are relieved that the infighting is now at an end."
"UKIP is conscious that out voters in the South West have been badly served and calls upon Mr Holmes to resign as an MEP in order that our supporters are properly represented."
The party took 7% of the vote in 1999's Euro elections, and is now going through a leadership contest.
The party has been going through turmoil recently. In October the party voted to dismiss all of its 16-strong ruling executive during its annual conference.
The UKIP's first leader, Alan Sked, resigned after the 1997 general election.
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