The World Travel and Tourism Council (WTTC) has urged government to suspend Package Travel Regulations (PTRs) until August.
It says the UK government could alleviate “unbearable pressure” on the sector by allowing tourism companies to issue credit notes.
When PTRs were drafted they stipulated clients are entitled to a cash refund if a trip is called off.
Research conducted by the WTTC suggests one million travel jobs are at risk in the UK during the Covid-19 crisis, alongside 6.4 million in the EU and 75 million around the world.
WTTC has called PTRs “unfit for purpose” and asked for them to be suspended until at least August.
“This measure should be implemented immediately and help lift the already crushing financial pressure on travel and tourism organisations and save the millions of livelihoods that depend on them,” said Gloria Guevara, WTTC’s president and chief executive.