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Visitor tax on the cards for next year but comes with a warning

Visitor tax on the cards for next year but comes with a warning

Friday 27 September 2024

Visitor tax on the cards for next year but comes with a warning

Friday 27 September 2024


Visitors to Guernsey are set to pay a new tax next summer.

But the President instructed by the States to bring forward the proposal has warned that it could damage an already fragile recovery in visitor numbers.

A visitor levy raising up to £2million was one of the ideas that survived from the first major tax review debate at the start of last year with an expectation it would happen by March this year.

Economic Development President Neil Inder said he was not a fan of a visitor tax, but it was his job to take directions of the States.

"The initial intent is to get something rolled out by the next season," he said, adding that an officer still needed to look at the details.

"We've got to be very careful, because there is a price point on all travel. There really is. And if we chase the actual budgeted figure, my great fear is that we will end up affecting a tourism sector which is still in recovery."

His "big fear" was damaging that recovery, he said.

When it comes in, the levy is not the only rise visitors face next year, with Guernsey Ports proposing passenger fees rises of up to 73p per passenger at the airport and harbour, as well as a new service charge at the airport of 70p to help improve assisted travel arrangements.

The latest figures show there were 58,000 staying visitors in Guernsey during the second quarter of 2024, an increase of 9% above the same quarter in 2023.

"That is still recovery, but it is 14% below the level in 2019.

"Travel habits have changed, and the cost of living pressures are affecting disposable income, and it cannot go without comment that the twin issues are revolving around our sea and air carriers have not helped that recovery."

The visitor tax was part of the original 'Fairer Alternative' Tax Package that was created to ward off a GST this term.

While many of its and Policy & Resources suggestions failed to progress through successive debates, this was one of the ideas that won support.

More than 40 countries and holiday destinations have a form of visitor levy, including Croatia, Paris, Barcelona, Balearic Islands and New Zealand.

A common approach is to include a small additional charge to overnight stays for commercially let visitor accommodation, it commonly ranges between 50p and £5 per night depending on the type of accommodation.

Edinburgh is consulting on a charge of five per cent on overnight stays for a maximum of seven nights.

Wales is also consulting on a levy, which is likely would be introduced by 2027.

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