United Kingdom and Ireland Visitor Economy at a Crossroads as New Research Uncovers Deepening Tourism Management Challenges

United Kingdom and Ireland’s visitor economy faces mounting challenges as new research reveals funding cuts, staff shortages and tourism leadership gaps. According to the findings of 91 tourism leaders, the State of Destination-Making 2026 report indicates that those charged with supporting tourism growth and local economies are under significant pressure. Despite the UK visitor economy generating around £147 billion, the findings raise questions over the future of destination management and the need for increased funding, leadership and collaboration.

The newly published State of Destination-Making 2026 report examines the growing challenges facing organisations responsible for developing, managing and strengthening visitor economies throughout both countries. Its findings suggest that many destination management bodies are struggling to maintain their operations as available resources decline and responsibilities continue to expand.

Developed jointly by Dr Peter Robinson from Leeds Beckett University and Dr Natalie Semley from Falmouth University, the research brings together perspectives from 91 professionals working in destination leadership. It reveals a widening gap between the economic significance of tourism and the operational resources available to the organisations supporting its long-term development.

The findings are particularly significant given the substantial contribution of tourism to the wider economy. In 2024, the UK’s visitor economy generated approximately £147 billion in economic value, supported around 2.4 million jobs and contributed an estimated £52 billion in tax revenue. Despite this considerable economic contribution, the report indicates that the organisations responsible for managing and supporting tourism destinations are facing increasing financial and structural difficulties.

The research identifies several major concerns affecting destination organisations:

• Limited workforce capacity: Half of the organisations surveyed operate with no more than five full-time employees, highlighting the small scale of many destination management teams.
• Absence of permanent staff: Approximately one in six responding organisations has no full-time employees, raising concerns about their ability to maintain consistent operations.
• Declining financial support: More than half of respondents reported reductions in their core funding since 2022, placing additional pressure on essential destination management activities.
• Shortage of tourism leadership: Over half indicated that their local authorities do not have a dedicated tourism lead, pointing to gaps in local coordination and strategic oversight.
• Expanding operational responsibilities: Destination teams are increasingly expected to contribute to economic development, place-making, environmental sustainability, workforce skills, community engagement and improvements in visitor experiences, often without corresponding increases in staffing or funding.

Beyond these immediate challenges, the report highlights a broader transformation in the responsibilities of destination management professionals. Their work now extends well beyond traditional tourism promotion and marketing, requiring them to coordinate partnerships, support local enterprises, oversee destination development and respond to changing economic, environmental and social priorities.

The study also draws attention to growing expectations for destination organisations to demonstrate measurable benefits for local economies and communities while adapting to significant structural changes across the tourism sector. However, the research suggests that the financial resources, organisational capacity and professional recognition available to these teams have not kept pace with their expanding responsibilities.

Overall, the State of Destination-Making 2026 report raises important questions about the long-term resilience of destination management across the UK and Ireland, particularly as tourism continues to play a major role in employment, economic activity and regional development.

Dr Peter Robinson, Head of Events, Tourism and Hospitality Management at Leeds Beckett University and co-author of the report, said: “There is a fundamental contradiction at the heart of our visitor economy. We rightly celebrate tourism’s contribution to jobs, businesses, and economic growth, yet too often overlook the people and organisations responsible for making that success possible. This much-needed research reveals a growing disconnect between the expectations placed on destination leaders and the resources available to them. They are increasingly responsible for economic development, sustainability, skills and community wellbeing, often while operating with small teams, shrinking budgets and limited capacity. Successful destinations do not happen by accident. They require effective leadership, specialist expertise, strong partnerships and sustained investment. We cannot expect a £147 billion visitor economy to thrive while the organisations underpinning it are continually being asked to deliver more with less. If we are serious about the future of our destinations, we must recognise destination management as essential economic infrastructure, not an optional extra.”

Dr Natalie Semley, Associate Professor of Tourism and Destination Management at Falmouth University and co-author of the report, said: “Behind the headline value of the visitor economy are people working extraordinarily hard to make destinations function. What the research shows is that many are doing so with very small teams, reduced resources and growing responsibilities. There is enormous resilience and innovation across the sector, but resilience cannot become a substitute for proper capacity. If we want visitor economies that work for businesses, communities and visitors, the people responsible for shaping them need the tools and support to do the job.”

Beyond examining the financial, staffing and leadership challenges affecting destination organisations, the State of Destination-Making 2026 report outlines four strategic priorities designed to strengthen destination management and support the long-term development of visitor economies across the UK and Ireland.

Greater Recognition: The research calls for tourism and the professionals responsible for destination development to receive stronger recognition in national and local government policies. It emphasises the importance of acknowledging the visitor economy’s contribution to economic growth, employment and community development.

Stronger Resources: The report highlights the need for more reliable funding arrangements and improved organisational capacity across the destination management sector. Rather than depending on temporary financial support and already overstretched teams, it advocates a more stable framework that allows organisations to plan effectively and deliver long-term objectives.

Closer Collaboration: Strengthening partnerships forms another central recommendation. The research encourages better coordination between national policymakers and local destination organisations, alongside greater cooperation among destinations, tourism businesses, universities and government institutions. Such connections could help improve knowledge-sharing, strategic planning and the delivery of tourism initiatives.

Improved Professional Capabilities: The study also stresses the importance of providing destination professionals with access to relevant training, reliable research, industry data and practical management tools. As their responsibilities become increasingly diverse, these resources are essential for supporting informed decisions and helping organisations respond to changing industry demands.

The findings also reflect a broader evolution in the Tourism Management Institute’s strategic direction. The organisation is placing greater emphasis on bringing together destination development professionals across the UK and Ireland, recognising that the successful management of visitor economies now involves a much wider network of stakeholders beyond conventional tourism departments and promotional bodies.

The report is scheduled for its official launch during the tmi Annual Convention on 15 October 2026. Its findings are expected to provide a foundation for discussions among destination professionals and industry stakeholders about addressing current operational challenges, strengthening collaboration and developing a more resilient framework for the future of tourism management.

Kathryn Davis, President, Tourism Management Institute, and CEO Visit West said: “This research matters because it gives us the evidence that many people across the sector have been feeling for some time. The role of tourism and the impact of the visitor economy is hugely important, but too much of the system supporting it is operating on fragile foundations. The answer is not simply to ask already-stretched destination teams to do more, or cut services deemed as not profitable enough. We need to recognise the role they play, connect the system more effectively, acknowledge their professional skills and make sure destination-makers have the capacity to deliver the outcomes we increasingly expect from them”.