On Wednesday (5 January), Boris Johnson announced that from 4am Friday (7 January), fully vaccinated arrivals will no longer have to take a pre-departure Covid-19 test.
Those arriving in England will also only be required to take a lateral flow test, instead of a PCR test, on or before Day 2.
Reacting to the changes, Aito executive director Martyn Sumners said the association was "pleased and encouraged" to see the government take the "long overdue" step to reverse the return testing regime.
"Consumer confidence will undoubtedly be bolstered by the relaxation of these rules, and it will unquestionably help the economy if the travel industry is allowed to trade without restrictions," he added.
"The government should now work on a solid plan to ensure that the travel sector can operate without any further obstacles."
Sumners called on the authority to sanction financial support for the travel industry if, going forward, it should be necessary to impose any further restrictions.
"We are now close to the third year of the pandemic and our industry has been hammered to the Nth degree," he concluded.
Meanwhile, Julia Simpson, president and chief executive of The World Travel and Tourism Council (WTTC), said the move would "significantly boost" the UK travel and tourism sector and help both it and the wider UK economy recover "much faster than expected".
"The testing measures being removed never actually stopped infections coming in and were a blunt policy which only damaged the travel and tourism sector," she added.
Joss Croft, UKinbound chief, said the industry will be "very pleased" to see the removal of "onerous" pre-departure testing and the replacement of the Day 2 PCR test with a lateral flow test.
"However, this is not job done," Croft added, highlighting the fact that January to March is a key booking period for inbound travel.
He echoed calls from fellow industry leaders and urged the government to provide a "clear roadmap" for the removal of all travel restrictions in a bid to ensure the "successful revival" of the UK’s "valuable" inbound tourism industry.
Ailsa Pollard, chief executive of Dnata Travel Group UK and Europe, said the testing overhaul could be "just the positive start to 2022 that the travel industry needs".
"Our brands have seen demand and bookings increase day by day since Christmas, showing that confidence is returning to the British consumer and that they’re eager to get away in the next 12 months and explore the world," Pollard added.
"There have been many false dawns since this pandemic begun, but this is a sensible and timely move."