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An estimated £6.5million is to be spent helping hotels and other businesses over the next year, as they continue to suffer from the impact of the covid-19 pandemic.
The visitor accommodation sector has been identified as being particularly hard hit by the travel restrictions imposed globally earlier this year, before the Bailiwick was put into lockdown in March.
Even with the Bailiwick now in phase 5 of its lockdown exit strategy and with travel restrictions relaxed, the number of visitors this year is likely to be extremely low compared to average numbers over previous years.
Pictured: Guernsey and the Isle of Man have agreed an air bridge for this year as both islands have no active cases of covid-19 but the visitor accommodation sector is still expecting a quieter than normal summer season.
The Policy & Resources Committee said it has recognised the financial impact the lockdown measures have had and will continue to have and it has agreed a new scheme to provide financial support to businesses in the visitor accommodation sector as a result.
Deputy Lyndon Trott, Vice-President of the Policy & Resources Committee, has been the political lead on the island's covid financial support measures.
“Accommodation providers are part of the visitor economy sector that we know is being hit hardest, with virtually no visitors coming to the Bailiwick this season and still a lot of uncertainty ahead. It is right that government looks to continue providing support. And given how varied this sector is, with a huge range in the size of operations, types of accommodation, staff costs and everything else, it was right to take a more detailed, targeted approach to how we provide that support.
"The feedback from the sector is incredibly valuable and I want to thank all of those who’ve engaged with us. It’s also shown how varied the views are within the industry on what kind of support, and at what level, is right. We had a real mix of suggestions, and no single preferred option, but we hope the grant system we’ve agreed proves effective for the sector as a whole.”
Pictured: Deputy Lyndon Trott.
The grant system will see two levels of financial support available to eligible hotels, guest houses and self-catering accommodation providers from 1 July.
The grants will be focussed on those businesses deemed to have the greatest financial need and those that are eligible will be able to claim from one of the two levels of grant offered in each category of accommodation. The highest level of financial support will be reserved for those businesses considered to be facing the most challenging circumstances.
A number of factors will be taken into account while deciding which level of support a business should benefit from, including trading results over the grant period and the access the business has to alternate funds, including its own reserves. Early indications suggest most businesses will be eligible for the ‘standard’ grant, with a small number receiving the ‘enhanced’ grant.
Deputy Trott said it is not yet known how long this grant will be required, or exactly how many businesses will be eligible for grants at the two levels, but it is intended that this support will remain available until the end of Q1 2021, and could cost an estimated £6.5m.
Pictured: Deputy Joe Mooney.
Efforts to encourage spending within the accommodation sector have seen a staycation club set up for people living in the Bailiwick.
Visitors are also expected from the Isle of Man after an air bridge was agreed between the island and Guernsey.
Deputy Joe Mooney, member of the Committee for Economic Development with responsibility for tourism, said this and the grants available will bring some benefits but they recognise it won't be enough to make up for the wider losses incurred.
“I hope this commitment to continue providing support to accommodation providers will give the sector some additional security at this very uncertain time. Islanders supporting the Staycation Club campaign are doing a wonderful job helping the industry, and anyone who hasn’t already, should take a look on club.visitguernsey.com at the huge range of offers. But while that local support helps a lot, clearly it cannot make up for a near-total lack of overnight staying tourists. The additional support from government will provide that bit more to keep these businesses going until the 2021 season.”
Pictured: A staycation club has been set up to try and encourage people to spend their holiday savings within the Bailiwick this year to try and help local businesses recoup come of their lost income.
As the grants scheme will use a large amount of public funds, the Policy & Resources Committee said it will publish information on businesses which receive support.
The grants scheme will remain under continuous review throughout this period.
The grant scheme approved by the Policy & Resources Committee follows extensive dialogue with industry representatives, including Economic Development’s Tourism Recovery Task Force which was specifically set up to ensure a broad range of accommodation providers were able to feedback to government, the Chamber of Commerce and other industry members.
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