'Budget' hotels will affect local business

Wednesday 24 July 2019

Although the opening of two 'budget' hotels could be a "positive" for Guernsey, some hoteliers have raised concerns as staffing in the sector continues to be an issue.

Work is soon to begin on a site at Admiral Park which will be home to a Premier Inn, while earlier this week Travelodge announced plans to open a hotel in the island.

However, many local businesses in the hospitality sector are currently suffering with staff shortages, which have even caused some to temporarily close their doors. It is thought the opening of two large brands could exacerbate the problem.

"The introduction of the population management regime in 2017 had a negative impact on not just hospitality but other local industries as well," explained Joint Heads of the Chamber of Commerce Hospitality Group, Alan and Áine Sillett. "Also, due to Brexit and the falling pound there has been a steep drop in European guest workers coming here.

"Unless we find a solution soon this issue will only get worse."

Pictured: Plans for a Premier Inn at Admiral Park were announced last month.

The Chamber Hospitality Group is working with the States to find ways of recruiting staff from non-EU countries in a faster, simpler way.

"If this is achieved it will not solve all of our problems, but it will certainly alleviate them to a great degree," added Mr and Mrs Sillett, who also manage the Duke of Normandie hotel.

Both UK hotel brands have said they aim to create year-round jobs for workers in Guernsey.

"I am sure both chains have done their research and realise how difficult recruitment and retention in this industry is in the island," said Managing Director of Sarnia Hotels, Karel Harris. "We accommodate 80% of our staff in our staff houses and have spent millions purchasing and updating them over the past decade.

"Let's face it, Travelodge and Premier Inn will not come to Guernsey out of the goodness of their heart to provide low cost accommodation. They will come if they can see a profit."

Pictured: Travelodge on the Rhyl seafront where rates start from £29 per night.

The Premier Inn project forms part of a wider investment by local property developer Comprop on its land at Admiral Park. However, Travelodge has announced it is appealing for the States to invest in its opening as part of a wider tourism strategy.

"As a local business owner who has never had a penny subsidy from the States, even for our environmental issues," added Ms Harris, "I would hope that the States would not provide land/States assets or a subsidy to a non-local operation."

The new hotels are expected to bring some "positive" changes to the hospitality industry though, as well as other local businesses.

"We are absolutely in support of any incoming business to the island and proves we have opened the doors and welcome new trade," said Charlotte Walker from The Little Big Hotel Group. "Perhaps on behalf of Les Douvres and Fleur Du Jardin - considered boutique hotels - we may not see threat to these larger properties given the difference in offering. With the Peninsula as a 99-bed hotel, and at many times at capacity, this shows the demand for further hotel beds on the island.

Pictured: The Peninsula hotel.

"Indeed, we have struggled with staffing in the industry for the last 12 months or so. Never at one time have we not been advertising for a role. However, considering the network and database of these UK chains, one would imagine they have a plethora of staff available to staff the properties. One would hope this may then encourage new staff to enter the island and contribute towards our offerings."

Mr and Mrs Sillett added: "Both hotels will be positive additions to the island's accommodation sector. We think although a small drop in occupancy might occur in the first six months of one of the new hotels opening, in the medium to long term the effect will be negligible. In fact it could be positive as they could attract new visitors to the island, who end up returning and possibly staying in different hotels in the future."

Guernsey's first Premier Inn is due to be built by December 2021, while plans for a Travelodge have not been confirmed yet.