Visit Lincolnshire's board of directors has confirmed that it will be calling in administrators after the local authority axed future funding support for the agency.
Interim chief executive Marc Etches has urged Lincolnshire County Council to explain how it will spend a proposed tourism budget of £204,000 after cutting the agency's funding.
Etches said: "As a direct consequence of the loss of public funding, most recently from Lincolnshire County Council, Visit Lincolnshire's Board has made a very difficult decision to begin the process of appointing administrators."