VisitBritain - the national tourism agency responsible for promoting the UK globally - has had its budget slashed by two-fifths with immediate effect.
Ministers told the organisation last week its annual budget was being cut with immediate effect from £18m to £10.5m for the year.
At the same time, the government ordered VisitBritain to meet a tough new target of 50 million visitors to the UK by 2030, up from the previous target of 30 million.
Nick de Bois, chair of VisitBritain, was also told he is to lose his job.
Critics point out that tourism is key to economic growth - which Chancellor Rachel Reeves says is the government's top priority.
The government moves mean an ambitious new TV campaign, a four-minute cinematic romp through TV shows and blockbuster films set in the UK, is likely to be axed.
Unveiled to much fanfare in January, it includes scenes from James Bond , Paddington and Notting Hill as well Bridgerton , House of the Dragon and Succession, which filmed Logan Roy's birthday party at Duns Castle in the Scottish Borders.
Visit Britain spent £8m of its budget on broadcasting the advert in five markets between January and March of this year - the USA, France, Germany, The UAE and Australia.
Research shows that nine out of ten potential visitors from those regions, most of whom come from the US, come to the UK with the intention of visiting film and TV locations during their trip.
Mr De Bois claims that the budget cuts spell disaster for the 'Starring Great Britain' campaign.
The former Tory MP said: 'The immediate impact means pulling the campaign from some of our largest and most valuable inbound visitor markets.
'Be in no doubt these unexpected cuts are a huge blow, affecting the UK's ability to compete for international visitors and, critically, their spending.
'International visitors spend tens of billions of pounds in the UK, in our shops, our small businesses, our restaurants and pubs.
'So, to take an axe to our budget that is spent directly on attracting those very visitors is, as a former chancellor once said, like sending your opening batsmen to the crease with their bats broken in half.'
He told the Mail on Sunday last night: 'That £8million from January to March was for just one quarter of what was planned as an annual campaign in five different key markets.
'We will now reduce the markets we spend in, so reach far fewer people, and only spend over a whole year what we spent in one quarter last year.'
Mr de Bois had formerly sought reappointment as chair of the British Tourist Authority, which trades as Visit Britain, a position he has held since 2022.
But the Minister for Creative Industries, Arts and Tourism, Sir Chris Bryant, has made it clear that he will not get a second term.
When the job comes up at the end of October, it appears likely a new chair with links to the Labour Party will be appointed.
He said: 'I was looking to continuing the work we have in hand to help grow this amazing tourism sector we have in Britain so I was disappointed with the ministers decision not to approve a second term, but that is his right and his choice.
What matters most to me is providing VisitBritain with the resources needed to achieve its expansion goals, and I will dedicate my remaining time to ensuring this success.
The analysis indicates that if tourism to the UK were increasing at the same rate as in Western Europe, the sector would generate an extra £4.4 billion annually by 2030.
A representative from VisitBritain stated: "These reductions occur when our projections indicate that the UK is beginning to fall behind internationally as a tourist destination, both on a global scale and compared to key Western European competitors."
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