Otherwise lie about holiday location (6)
I believe the answer is:
resort
'holiday location' is the definition.
(I've seen this before)
'otherwise lie about' is the wordplay.
'otherwise' becomes 'or'.
'lie' becomes 'rest' (synonyms).
'about' means one lot of letters goes inside another.
'or' going inside 'rest' is 'RESORT'.
(Other definitions for resort that I've seen before include "Put fresh order" , "Place to visit" , "Where tourists go" , "set out differently" , "Rearrange a holiday place" .)