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Compulsory purchasing sites for new hotels and a 'bed tax' are among the initiatives government is examining to boost the struggling tourism sector in future, according to a new report published today.
The Visitor Economy Strategy – published by the Government in partnership with Visit Jersey and industry representatives – sets out 48 policy priorities grouped under various strategic objectives including connectivity, accommodation, sustainability, and digitalisation.
It also sets out the challenges facing the sector, including declining visitor accommodation bed stock reaching “critical levels”.
Pictured: The strategy said that the decline in visitor accommodation bed stock is now reaching “critical levels”.
It also highlights the island's falling visitor numbers, from 771,000 in 2019 to 475,000 in 2022.
One of the ways in which the strategy plans to tackle this decline is by "unlocking development on Government-controlled sites".
The strategy explains that, given the challenges around cost and competition for sites, Government "will need to exercise its powers to ensure sites are made available for development of visitor accommodation" and to "ensure strategic sites are not lost to other uses".
This includes the allocation of sites on Government land, as well as the compulsory purchase of assets which are deemed "strategic".
Pictured: A new Visitor Economy Strategy for Jersey has been published by the Government in partnership with industry representatives.
The strategy also outlines plans to identify tourism and hospitality businesses at risk of closure.
Once identified, the strategy said that such businesses could be helped to prepare a "communication plan" in order to "mitigate negative interpretation".
Hotels that have closed in recent years – such as the Mayfair – cited the challenges facing the sector and the impact of the pandemic.
The aim, the strategy said, is to "ensure the communication around [closures] is consistent with our messaging of overall improvement and transformation of the island’s accommodation product".
As well as ensuring that communications around closures are managed, the strategy also hopes to support investment in the sector by exploring the feasibility of grants, loans, joint ventures, or public-private partnerships.
The strategy also outlines the potential of a 'bed tax' to raise funds for the tourism and hospitality sectors.
Many locations around the world have a 'bed tax' or 'tourist tax' which are used to fund improvements to infrastructure. Barcelona has had a tourist tax since 2012, while Valencia and Venice have just introduced one. German cities Berlin, Hamburg and Frankfurt have a 'bettensteuer' ('bed tax') of around 5% of the hotel bill.
As for the accommodation sector, the Government explains that they will liaise with the Treasury department in the establishment of an infrastructure fund.
Pictured: The island's visitor numbers have fallen from 771,000 in 2019 to 475,000 in 2022.
While the Housing Minister last year announced a clampdown on AirBnb as part of moves to combat the housing crisis, it was included as a key prong of the strategy, which said a clear policy needs to be developed to allow growth in the short-term holiday let and self-catering market.
The Government outlines plans to "work together across the economy, housing and planning policy areas to increase the clarity of existing policy relating to the development of self-catering accommodation".
The will be kept under review and communicates to the industry and general public to "ensure opportunities can be brought to fruition and not foregone due to misinformation or confusing regulations".
Launching the strategy this morning, Economic Development Minister Kirsten Morel said that it was about more than just holidaymakers coming to the island and that efforts would be made to improve the on-island experience for other groups of travellers.
"...[It] includes all the events, experiences, businesses and people who serve and interact with visitors. It also includes all Islanders, whose spending on hospitality is so important, as well as people who are visiting friends and family, and business visitors," he said.
"Implementing this strategy will require the efforts of not only Government but also the industry and other stakeholders. This will take time, but it is necessary if we are to achieve the goal of becoming a globally recognised, sustainable and enriching destination.
"We all have a part to play in the future of the industry, and that is an important message for all Islanders: you are part of the visitor economy and can contribute to its future."
You can read the full Visitor Economy Strategy onlineHERE.
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