UK Stands Alongside Ireland in Facing Tourism Management Challenges as Shrinking Budgets Threaten Destination Capacity

UK and Ireland are currently facing extreme tourism management issues due to destination funding shortages. The tourism management in UK and Ireland is under significant pressure due to reduced budgets and staff. The complications in these areas are highlighted in the Tourism Management Institute (TMI) report – State of Destination-Making 2026, as the responses of 91 destination managers were reviewed.

A widening gap is identified between the work expected of organisations supporting visitor economies and the resources available to them. For the travel sector, attention is being directed beyond promotion towards the teams responsible for shaping destinations, supporting businesses and improving visitor experiences. Their capacity is presented as central to the future of tourism.

Tourism’s Economic Weight Puts Capacity in Focus

The scale of the challenge is illustrated by the national economic figures presented with the research. Approximately £147 billion was contributed to the UK economy by the visitor economy in 2024. Around 2.4 million jobs were supported, while approximately £52 billion in tax revenues was generated.

These figures apply specifically to the UK, rather than a combined total for the UK and Ireland. Against that economic contribution, the infrastructure supporting destinations is described as increasingly fragile. Greater attention is therefore being sought for the organisations through which tourism activity is supported, local partnerships are maintained and destination development is coordinated over time.

Research Reveals a Gap Between Expectations and Resources

Organisations supporting visitor economies are examined through the responses of destination leaders. Their ability to meet growing demands is assessed alongside the resources available for practical delivery.

A widening gap between those two sides is identified. Destination professionals are being asked to address economic development, sustainability, skills and community wellbeing, often through small teams with shrinking budgets. The findings place the capacity behind tourism activity at the centre of the discussion. The management of successful places is presented as requiring both specialist knowledge and sustained support.

Small Teams Carry a Heavy Destination Workload

Staffing is highlighted as a major constraint. Half of the organisations surveyed have five or fewer full-time staff, while around one in six operates without any full-time employees. A small staffing base is therefore being relied upon across much of the survey sample.

Limited capacity is being matched with responsibilities that extend across several areas of destination development. Economic priorities, community interests and visitor needs must all be considered. The research recognises considerable resilience and innovation among destination professionals. However, those strengths are not presented as substitutes for sufficient staffing, specialist expertise or the resources needed to sustain effective delivery.

Shrinking Funding Is Matched by Gaps in Local Leadership

Funding pressures are also documented. More than half of respondents reported declining core funding since 2022. Separately, more than half said their local authority had no dedicated tourism lead. Both findings are presented against a broader set of expectations for destination organisations.

A system under pressure is described, with substantial responsibilities being assigned to teams whose resources are already limited. Reliance on stretched organisations and short-term funding is challenged within the recommendations. Greater stability is being sought so that the work behind destination development can be properly supported. The findings connect funding concerns with the wider question of local capacity.

Destination Management Goes Far Beyond Selling Holidays

The role of destination management is described as much broader than tourism marketing. Professionals are increasingly expected to coordinate partners, manage places and support businesses. Economic and social impact must also be demonstrated.

Their responsibilities cover economic growth, place-making, sustainability, skills development, community needs and visitor experience. Structural changes must be addressed at the same time, often with limited resources and recognition. A destination is therefore being considered as a place that must function for residents and businesses as well as visitors. This wider remit is central to the report’s concern about the mismatch between expectations and available operational capacity.

Visitor Experiences Are Connected to Stronger Local Support

A central concern for the travel sector is the relationship between destination capacity and visitor experience. Places must be managed alongside the businesses and communities that form part of them. In the research, these responsibilities are linked with economic growth, sustainability and skills development.

Tourism promotion is therefore placed within a much wider programme of work. Support for destination professionals is presented as part of maintaining visitor economies that serve businesses, residents and travellers together. Effective leadership, specialist expertise and strong partnerships are identified as requirements for successful destinations. Sustained investment is considered necessary to support that work over time.

Greater Recognition Is Sought for Essential Tourism Work

Four priorities are set out for strengthening destination-making. Under Recognise it, greater recognition is sought for the visitor economy and the professionals responsible for its development within national and local policy. Destination management is presented as essential economic infrastructure, rather than an optional addition to tourism promotion.

The recommendation addresses the contrast between tourism’s widely recognised economic value and the limited recognition given to those supporting its delivery. A broader understanding of the role is encouraged, reflecting responsibilities for businesses, places, communities and visitors. Recognition is positioned as a foundation for better support, not as a replacement for practical resources.

Stable Funding and Capacity Are Placed at the Centre

The second priority, Resource it, calls for greater stability and capacity across the destination system. Continued dependence on overstretched teams and short-term funding is challenged. The emphasis is placed on the resources needed to carry out an expanding workload, rather than expecting resilience to absorb every new demand.

This recommendation connects directly with the reported decline in core funding and the limited staffing found among respondents. Sustained investment is presented alongside effective leadership, specialist knowledge and strong partnerships as a requirement for successful destinations. The underlying concern is continuity: destination responsibilities must be supported beyond individual campaigns or temporary arrangements.

Stronger Connections Are Needed Between Policy and Places

Under Connect it, stronger links are sought between national policy and local delivery. Greater cooperation is also encouraged between destinations and across industry, academia and government. The recommendation reflects a role in which coordination is already expected of destination professionals.

Better connections are presented as part of strengthening the system through which visitor economies are supported. The research also forms part of the Tourism Management Institute’s wider focus on connecting destination-makers throughout the UK and Ireland. Responsibility for successful visitor economies is recognised as extending beyond traditional tourism roles, with partnerships needed across the organisations involved in shaping local places.

Skills and Evidence Shape the Next Steps

The fourth priority, Equip it, focuses on access to skills, evidence, data and practical tools for all destination professionals. These resources are considered necessary for roles that have become increasingly complex. Better support is sought so that economic, social and visitor priorities can be addressed with appropriate expertise.

Tourism management within the United Kingdom and Ireland is under pressure as reduced budgets and staff levels leave destination teams with fewer resources to meet increasing demands.