Tourist board Visit Cornwall has gone into voluntary liquidation, Business Live understands.
The community interest company is responsible for promoting the Duchy as a visitor destination - from its accommodation to eateries to its beaches. It also represents some 500 tourism-related businesses across the county.
It is understood the organisation made the decision to wind up the business as it was facing "insurmountable" financial issues.
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Jon Hyatt, chair of Visit Cornwall, said it was "incredibly difficult" and acting in the best interests of employees and members had been the organisation's "priority".
"The Visit Cornwall board consists of non-executive voluntary directors responsible for the organisation’s strategic direction," he said. "The board have explored every avenue possible, including discussions with funders and key partners, to find a solution to these problems.
“However, with SPF funding, which has been vital to Visit Cornwall for the last four years, ending in March 2026 with no sign of a replacement programme, and another round of payments due to come from our members in the next two months, we had to act.
“Sadly, today’s was the only responsible decision – this was about doing the right thing by our members and doing the right thing for our staff.”
The organisation's six employees are being made redundant, but it is understood they will receive compensation.
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Mr Hyatt added: "We want to thank those staff, our members and partners for their commitment and contribution to Cornwall’s visitor economy over the last decade.
“Visit Cornwall will be missed. It has proved that there is a need for a voice that represents, supports and promotes the sector and it leaves behind it an opportunity for a new voice to emerge. We hope the sector will unite and, with Cornwall Council, make that a reality.”
Kevin Georgel, chief executive of St Austell Brewery, said the news of Visit Cornwall’s liquidation was "deeply concerning" and marked "a critical moment" for Cornwall’s visitor economy.
"We urgently need to understand what a robust and coordinated plan to support the tourism sector looks like moving forward," he said.
"Tourism remains the backbone of Cornwall's economy, supporting thousands of jobs and sustaining so many local businesses."
Mr Georgel said the loss of Visit Cornwall comes as the tourism sector faces "unprecedented challenges" including falling visitor numbers, rising costs and the closure of attractions and venues.
"The sector needs leadership, investment and a clear strategy to navigate the current climate and build resilience for the future, which we recognise can only be delivered by a collaborative approach that brings together public and private businesses to drive recovery and growth," he added.