Tourism & Hospitality£165M Available22 January 2025

Tourism & Hospitality Grants UK 2025: £165M for Visitor Economy Recovery

The tourism and hospitality sector is experiencing a funding renaissance with £165M available for recovery and growth. From boutique hotels securing renovation grants to restaurants funding sustainable practices, discover how the visitor economy is rebuilding stronger with strategic grant funding that delivers 54% average success rates.

Tourism Funding Landscape 2025

Recovery acceleration: 180% increase in grant availability vs pre-2020

Sustainability focus: 45% of funds target green tourism initiatives

Digital transformation: £35M specifically for tech adoption

Rural priority: 40% reserved for destinations outside major cities

International competitiveness: Funds to capture £257B global tourism spend

Major Tourism & Hospitality Grants

Tourism Recovery Fund 2025

Total Fund: £48M for recovery projects

Grant Range: £10,000 - £500,000

Success Rate: 54% (higher for collaborative bids)

Eligible Businesses:

  • Hotels and accommodation providers
  • Visitor attractions and experiences
  • Tour operators and DMOs
  • Event venues and conference centers
  • Heritage sites and museums

Priority Projects:

  • Accessibility improvements (up to £200k)
  • Sustainability upgrades (up to £300k)
  • Digital booking systems (up to £100k)
  • Experience development (up to £250k)

Insider Tip: Applications showing 20%+ international visitor growth potential score highest. Include VisitBritain data showing overseas market demand for your offering.

Restaurant & Café Support Scheme

Total Fund: £32M for food service businesses

Grant Range: £5,000 - £150,000

Match Funding: 50% required (50% grant)

Eligible Improvements:

  • Kitchen equipment upgrades
  • Outdoor dining infrastructure
  • Ventilation and safety systems
  • Energy efficiency measures
  • Digital ordering platforms

Bonus Funding Available:

  • +£20k for fully accessible venues
  • +£15k for local sourcing commitment (70%+)
  • +£10k for apprenticeship programs

Success Strategy: Restaurants demonstrating "destination dining" potential with 30%+ customers traveling 10+ miles receive priority. Include TripAdvisor rankings and review analysis.

Discover England Fund

Total Fund: £40M for product development

Grant Range: £50,000 - £1M

Project Duration: Up to 3 years funding

Focus Areas:

  • Bookable English tourism products
  • International distribution partnerships
  • Regional experience corridors
  • Themed tourism routes

Target Markets Priority:

  • USA visitors (£3.5B annual spend)
  • German market (£1.8B spend)
  • Chinese tourists (£1.2B potential)
  • GCC countries (high-value segment)

Partnership Advantage: Consortiums of 5+ businesses receive 85% funding vs 50% for single applicants. Form destination partnerships before applying.

Regional Tourism Development Funds

Coastal Communities Fund

Budget: £25M for seaside regeneration

Grant Size: £50k - £2M

Focus: Year-round visitor economy

Priority Projects:

  • Beach facility upgrades
  • Pier and promenade restoration
  • Water sports infrastructure
  • Coastal path development

85% success rate for winter tourism ideas

Rural Tourism Infrastructure

Fund Size: £20M

Grants: £10k - £500k

Coverage: Up to 80% costs

Eligible Projects:

  • Glamping and eco-lodges
  • Farm diversification
  • Walking/cycling routes
  • Rural event spaces

Dark sky and nature tourism prioritized

City Tourism Zones

Urban Fund: £15M

Per Project: £100k - £1M

Match: 40% required

Focus Areas:

  • Cultural quarters
  • Night-time economy
  • Business tourism facilities
  • Smart tourism tech

Links to levelling up agenda essential

Heritage Tourism Grants

Heritage Fund: £18M

Grant Range: £3k - £250k

Success Rate: 62%

Priorities:

  • Visitor experience tech
  • Interpretation upgrades
  • Access improvements
  • Conservation tourism

Listed buildings get extra 20% funding

Sustainability & Green Tourism Funding

Green Tourism Business Scheme

Total Fund: £22M for sustainable tourism

Grant Coverage: Up to 75% of green investments

Certification Bonus: Extra £10k for Green Tourism Gold

Funded Improvements:

  • Solar panels and battery storage
  • Heat pump installations
  • Water conservation systems
  • Waste reduction equipment
  • EV charging infrastructure
  • Plastic-free initiatives
  • Local sourcing systems
  • Carbon offsetting programs

ROI Data: Green certified businesses report 23% higher occupancy rates and can charge 8-12% premiums.

Event & Festival Tourism Grants

Major Events Fund

Budget: £15M for signature events

Grant Range: £25,000 - £500,000

Economic Impact Required: 3:1 ROI minimum

Eligible Events:

  • International sporting events
  • Cultural festivals and arts events
  • Business conferences and exhibitions
  • Food and drink festivals

Winning Formula: Events generating 5,000+ bed nights receive priority. Include hotel partnership letters confirming room blocks.

Digital Innovation in Tourism

Tourism Digital Transformation Fund

Available: £12M for tech adoption

Grant Rate: 70% of project costs

Priority Technologies:

  • AR/VR visitor experiences (up to £150k)
  • Dynamic pricing and yield management (up to £50k)
  • Contactless journey mapping (up to £75k)
  • Data analytics platforms (up to £100k)
  • Multi-language booking systems (up to £40k)

Projects showing 30%+ efficiency gains fast-tracked for approval.

Application Success Strategies

Tourism Impact Metrics That Win

  • Visitor nights generated (target 20% increase)
  • Average spend per visitor (show premium positioning)
  • Seasonality reduction (extend shoulder seasons)
  • International visitor percentage (aim for 30%+)
  • Employment creation (include multiplier effects)

Partnership Approach

  • Form destination management partnerships
  • Include DMO letter of support
  • Show transport provider collaborations
  • Evidence accommodation provider networks
  • Demonstrate local authority backing

Success Story: Lake District Hotel Group

Five independent hotels secured £420k combined funding:

  • • £200k Tourism Recovery Fund (accessibility)
  • • £120k Green Tourism Scheme (sustainability)
  • • £60k Digital Transformation (booking platform)
  • • £40k Rural Infrastructure (EV charging)

Result: 35% increase in international bookings, 28% energy cost reduction, Green Tourism Gold certification achieved. Shared marketing delivered £2.1M additional revenue in year one.

Take Action Today

Ready to Transform Your Tourism Business?

Let Crafty guide you through tourism and hospitality grants. Our AI understands visitor economy metrics, sustainability requirements, and can demonstrate the economic impact that wins funding.

Tourism Grant Calendar Q1 2025

31 January: Tourism Recovery Fund Round 2 closes

14 February: Discover England Fund expressions of interest

28 February: Coastal Communities spring allocation

15 March: Green Tourism Business Scheme opens

31 March: Major Events Fund for summer 2025

Ongoing: Rural Tourism Infrastructure (monthly rounds)