Clue: Holidaymakers' initial destination perhaps in Lesotho not so awful? (5)
Answer: HOTEL
Explanation: Definition: Holidaymakers' initial destination perhaps
 **Anagram of**(… awful) [ "Lesotho" **minus**(not) "so" ].
Defn: …. Also word representing the **1st letter of**(… initial) "Holidaymakers" in the phonetic alphabet.