UK tourism set for upgrade under new proposals

The UK’s struggling travel industry is to be given a shot in the arm, as part of new measures to cut red tape for local hotels, restaurants, and pubs.

On Monday, the Government unveiled its Plan for Change. It aims to cut “outdated regulations”, allowing local firms in tourism, hospitality, and leisure to collaborate directly with each other to offer cheaper breaks, a win-win for holiday goers and small businesses. 

Minister for Employment Rights, Competition and Markets, Justin Madders, said: “These common-sense changes will help small firms, boost British tourism, and give families more choice when booking a staycation. More options, better value, and a stronger UK economy.”

The news comes as the holidays sector is on its last legs. Over the weekend, a campaign group began calling for urgent intervention to protect SMEs, warning that domestic holiday trips could this year drop by almost a third this year due to the cost of living crisis.

What’s in the Government’s new holiday package?

Since July 1st 2018, the Package Travel and Linked Travel Arrangements Regulations has set strict stipulations for organisers of package holidays. These aim to provide sufficient security for repatriations and refunds in the rare event of their own insolvency.

However, the Government has decided that the complex legislation is creating barriers for holiday providers to offer competitive deals to customers.

So far, details are thin on exactly what actions will be taken. But according to a government press release, the new plans will help businesses by making it quicker to fix problems with suppliers and easier to protect customer payments if a third-party provider goes bust.

Combined, this should allow small businesses to work together on experiences, giving consumers better value and supporting growth across the tourism sector.

For example, a B&B will be able to offer its customers a discount at a local restaurant. Or a Welsh campsite may be able to bundle in surfing lessons. 

Under current regulations, setting these partner deals up would require reams of paperwork for small firms, creating admin costs that may often be passed down to the customer. It’s hoped that the new changes will encourage Brits to stay local for their summer holidays.

Too little, too late?

The Government’s latest announcement may come too late for affected small businesses. Like fish and chips at the seaside, the UK holiday industry has taken a battering. 

During COVID, the sector enjoyed a surge in demand as lockdown stopped Brits from going abroad. But five years on, the trend has now reversed, as rising prices send many consumers hunting for cheaper package deals from providers based abroad.

A report by industry group, Out & About Live estimates that domestic trips in the UK have fallen by 32% in the past three years, from 42.3 million in 2022 to just 28.8 million by 2025. The body has launched a national campaign, Back British Holidays, to address the problem. 

Spokesperson Daniel Attwood told the Express that campsites are being particularly hard hit, adding “The decline has been much, much more significant than anybody expected. We’re at a point where if action is not taken, we’re going to start to see businesses going under.”

With many companies having paused hiring due to the increasing cost of employment,  closures could have a big impact on the unemployment rate. Currently, the sector reportedly employs 300,000 direct jobs, along with three million workers indirectly employed.