Rural Tourism Partnership – an action plan and a new minister

In the wake of the cabinet reshuffle, which saw a significant reorganisation of ministerial responsibilities, the tourism sector has a new minister.

Stephanie Peacock MP has been appointed as Minister of State jointly in the Department for Culture, Media and Sport (DCMS) and the Department for Science, Innovation and Technology (DSIT). Peacock replaces Sir Chris Bryant MP, who has been shuffled to the Department for Business and Trade (DBT).

This change in leadership at DCMS offers an opportunity to push the rural tourism sector to the top of their agenda. Rural tourism has been overlooked for the growth it can provide, and if the new cabinet is looking for growth opportunities, the minister should be a strong proponent of rural tourism.

The Rural Tourism Partnership, re-established in 2024 by the CLA, has published a comprehensive Action Plan to unlock the full potential of rural tourism.

With a combined membership of over 125,000 businesses, the partnership brings together a coalition of organisations all committed to ensuring that rural tourism can thrive.

The partnership includes:

• British Holiday & Home Parks Association
• CLA
• Countryside Alliance
• Historic Houses
• NFU
• PASC
• STAA
• The Bed and Breakfast Association
• The South West Tourism Alliance
• Tourism Alliance.

The Action Plan sets out a clear ambition: to increase rural visitor numbers by 7.5% annually to 2030, this will help meet the government’s ultimate target of 50 million visitors by 2030. It identified five key challenges to reaching this goal and proposes targeted solutions.

The first major challenge is the need for sustainable and regenerative tourism. If the sector is to grow it must actively regenerate the communities and environments it impacts. This means addressing issues such as the lack of affordable housing and poor connectivity, while also ensuring that tourism contributes positively to local economies, ecosystems and social wellbeing.

Secondly, rural tourism is particularly vulnerable to seasonal fluctuations and is largely dependent on the landscapes it exists within. The natural beauty of rural areas is a key draw, but it also means that businesses are exposed to weather-related risks and seasonal downturns. To remain competitive, the sector must find ways to balance domestic and international visitor flows and offer year-round appeal.

The third challenge is the sector’s exposure to political and economic shocks. Covid-19 and economic instability have demonstrated that rural tourism businesses can often lack the resilience they need to diversify and adapt.

Fourth, the devolution agenda is at risk of prioritising urban areas, leaving rural tourism, and other rural sectors, underrepresented in regional decision-making. The creation of bodies such as the Visitor Economy Advisory Council without effective trade association input has exacerbated this concern. Rural tourism must be properly integrated into devolved strategies to avoid widening the rural-urban economic divide.

Finally, there is a persistent issue of policy uncertainty and fragmentation. We have just been appointed yet another new minister after all. Inconsistent decisions around tax, planning, transport, and skills have created an unstable environment for rural tourism businesses. A lack of coordination across Whitehall and the assumption that rural matters fall solely under Defra have led to missed opportunities and ineffective policymaking.

To address these challenges, the Action Plan proposes a series of strategic interventions.

First, rural tourism must be recognised as a key driver of economic growth. With 75% of rural visitors being domestic, there is significant potential to grow inbound tourism from abroad. This requires investment in infrastructure, better transport links, and support for farm diversification. The government must work directly with stakeholders to ensure growth is inclusive and regionally balanced.

Second, the sector needs a dedicated skills framework. Tourism must be seen as a viable career, not just a seasonal job. By working with Skills England and the Visitor Economy Advisory Council, the government can help establish clear career pathways and revitalise employment in the sector.

Third, rural tourism can play a vital role in improving public health. Nature-based tourism has proven benefits for mental and physical wellbeing. As the NHS shifts toward prevention, rural tourism should be part of the solution.

Fourth, rural tourism businesses are well-positioned to support the UK’s clean energy transition. Many operate on land suitable for renewable energy regeneration but face barriers due to infrastructure and financing. With the right support, these businesses could become net producers of clean energy.

The Action Plan also calls for planning reform. While permitted development rights have helped, local planning authorities must better recognise the benefits of rural tourism. Access to finance is another critical issue. The decline of grant programmes has left many businesses unable to invest in growth. The government should introduce “soft loans” at 0% interest to support diversification and expansion.

Finally, the tax regime must be reformed. The UK’s 20% VAT rate on tourism and hospitality is significantly higher than in other European countries, undermining the UK’s competitiveness. Reducing VAT and avoiding poorly designed tourism taxes and council tax changes – like those in Wales – would give businesses greater confidence.

With a new minister in post, we have a fresh opportunity to shape the government’s Tourism Growth Plan which we expect towards the end of the year.

The partnership will share the Action Plan with Minister Peacock, and we will seek to meet with him to discuss how rural tourism can be embedded in national growth strategies. Civil servants have already received the document, and we will continue to work with them to ensure its recommendations are reflected in future policymaking.

This is a critical moment for rural tourism. With the right support, it can drive economic growth, improve public health, and help Britain become a clean energy superpower - all while preserving the landscapes and heritage that make our countryside so special.