New Reforms Aim to Spark UK Tourism Revival and Support Staycation Businesses

The UK tourism industry is set for a revival as the Government rolls out new reforms aimed at boosting staycations and supporting small businesses. With domestic travel in decline, the Plan for Change promises to cut red tape, making it easier for local firms to collaborate and offer better-value holiday packages—paving the way for a stronger UK tourism revival.

A Simpler Way to Bundle Holidays

At the core of the plan is a review of the Package Travel and Linked Travel Arrangements Regulations, in place since 2018. Though originally designed to protect consumers, the rules have made it complex and costly for small businesses to bundle services without facing significant administrative burdens.

Under the proposed changes, firms will be able to partner more easily—offering joint deals like B&B stays with local restaurant discounts, or camping sites with add-on activities like surf lessons. These adjustments are expected to bring more value to customers and encourage homegrown travel. The Government also says the reforms will make it faster to fix supplier issues and improve protections if a third-party provider fails—changes that could help small businesses recover and thrive.

Challenges Facing the Sector

The UK tourism revival comes at a crucial moment. After a boost during COVID, domestic travel has dropped sharply as rising costs push people to book cheaper holidays abroad. Out & About Live reports that UK trips have fallen from 42.3 million in 2022 to a predicted 28.8 million by 2025—a 32% drop. The group has started the Back British Holidays campaign, warning that without quick action, many local businesses could shut down.

Jobs and Local Economies at Risk

Tourism supports 300,000 direct jobs in the UK, with millions more linked to the industry. But rising costs and fewer bookings have caused many businesses to stop hiring. Without recovery, job cuts could follow. The Government’s new plan shows a clear effort to support a UK tourism revival, with easier rules, more teamwork between businesses, and better holiday deals for travellers.