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The States' senior committee will commission an independent review of government support for visitor accommodation businesses before making a decision on whether to add more taxpayer money to the £6.5m already committed to the sector.
Businesses in this sector have been identified as needing ongoing support until the end of March 2021 because of the major impact of the pandemic and the resulting lack of visitors.
The Peninsula Hotel has closed for business for the rest of the year, the owner of La Grande Mare has decided to bring forward his redevelopment plans and the L'Eree Bay hotel has shut its doors for good.
Meanwhile, businesses in the sector continue to suffer, with industry representatives saying that revenues are "decimated" and the Civil Contingencies Authorities admitting that tourism is "effectively closed for business" and "facing three winters in a row".
Pictured: The owners of the Peninsula have ruled the hotel out of the market until April 2021 because of current market conditions.
Policy & Resources has agreed to extend support through the payroll co-funding scheme until September, at which point it will be replaced with a new grant scheme that will run until March 2021.
That will take the total amount of funding up to £6.5m, however P&R Vice-President Lyndon Trott said the latest signs are that more is required.
"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," he said.
"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."
Pictured: Deputy Lyndon Trott is leading the Policy & Resources' financial support measures.
The Committee has decided to commission a "short, independent" review that industry reps will be able to help set the terms of reference for.
"Given the importance of this support package, we’re seeking independent assurance that it will achieve its aim, or how it can be improved. The review will be fast, low- cost and carried out by an on-island firm.
"We also want the industry and the public to have access to the findings of this review so they can also be confident that any support scheme provided is the right one, set at the right level.”
The direct contribution of the hostelry–accommodation sector to GVA is approximately 0.9% of the overall economy.
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