An independent review of government support for Guernsey’s visitor accommodation has been greenlit in response to fears it is not enough to help the industry.
Commissioned by the Policy and Resources Committee, the review will examine the proposed grant system that will offer around £6.5m. in financial help to hospitality businesses between October 2020 and March 2021.
Businesses offering accommodation have been identified as needing ongoing support due to the devastating impact of the pandemic on visitor numbers.
‘We know some of our visitor accommodation providers are worried that the amounts of public money we’ve already committed to them won’t be enough to see them through this year. While we are very conscious of the need to avoid spending any more public money than is genuinely needed, we also recognise there’s a great deal of uncertainty as no-one has ever faced a situation like this before,’ said Deputy Lyndon Trott, Vice-President of the Policy and Resources Committee.
While the popularity of staycations has, to a degree, offset the impact of the pandemic for some businesses, others were badly struggling, said Deputy Trott.
‘We are fully aware that this does not compensate for the loss of bed night business, but overall it does have an impact on how much support is needed by the industry. Given the importance of this support package, we’re seeking independent assurance that it will achieve its aim, or how it can be improved.’
Deputy Trott instead the review would be quick, low-cost and undertaken by a local firm. Findings will also be made public.
Guernsey’s accommodation sector contributes approximately 0.9% to GVA of the overall economy. The total estimated financial support to the sector between March 2020 and March 2021, including the payroll co-funding scheme, is estimated to be in the region of £9m, which is 19% of the overall forecast of £48m. for business support measures.
