How we get on and off the island is the main priority set in Guernsey’s new economic work plan, while challenges facing the marine and construction industries are among those issues marked as ‘watch and see’ on the island’s ‘to do’ list.
Put together by Economic Development (ED), the new plan promises to address the problems caused by years of underinvestment in our infrastructure.
Tourism and digital innovation also feature while helping small and medium enterprises is lower down the list.
ED President, Deputy Sasha Kazantseva-Miller said the 2026-29 work plan has eight priorities in total, which will strengthen the economy, improve competitiveness, and support long-term growth.
“Guernsey has strong economic foundations” but it is “operating in an increasingly challenging demographic and global economic environment”, she said.
“Years of underinvestment in productive infrastructure have also constrained our ability to grow, and we cannot assume that past success alone will secure future prosperity.”
The priorities
As well as focusing on improving air and sea links, growing the finance sector even further features high up the priority list, along with tourism, trade links, and digital advancements.
These ‘economic levers’ are already within ED’s mandate, with the committee adopting an 80:20 approach.
This means the committee will focus 80% of its time and resources on the eight priorities, while keeping 20% back for responding to any “emerging themes and new opportunities” that may arise over the next three years, ahead of the 2029 election.
ED’s eight priorities
- Air and sea links
Improving air and sea connectivity, including reviewing the Air Policy Framework and Air Transport Licensing Policy, developing new air routes and enhancing inter-Bailiwick links. - Tourism
Increasing visitor numbers and visitor satisfaction through the Visitor Economy strategy, tourism product improvements and consideration of a visitor levy. - Trade links
Strengthening trade links with strategic markets, including France and the Commonwealth, and supporting the extension of international trade agreements such as CPTPP and the GCC. - Finance sector
Delivering and implementing the Finance Sector Growth Strategy, supported by the Finance Sector Growth Forum. - Innovation
Accelerating digital adoption, AI and innovation through an updated Digital and AI Framework and an Innovation Plan. - Legislation
Completing the review of competition and regulation legislation and taking forward electricity regulation workstreams. - Infrastructure
Maximising the economic value of the Guernsey Registry and Aircraft Registry. - Long-term vision
Developing a new Economic Development Strategy to set a longer-term vision for growth, investment, skills, productivity and workforce participation.
Deputy Kazantseva-Miller said these priorities reflect “the areas where we believe we can make the greatest difference across the economy”.
“It is largely industry-agnostic, with priorities including improving connectivity, strengthening tourism and trade, supporting the continued growth of our finance sector, accelerating digital adoption and innovation, ensuring proportionate regulation and developing a long-term Economic Strategy for the Bailiwick,” she explained.
“Many of the drivers of economic success sit beyond the committee’s direct responsibilities, making a joined-up approach across government, industry and the community more important than ever. That is why developing a long-term Economic Strategy is one of our key priorities, providing a shared direction for sustainable growth across the Bailiwick.”
Priority 1 – Air and sea links
Described as an ‘ongoing’ priority – ED wants to “improve air and sea connectivity through review of the Air Policy Framework and Air Transport Licensing statement (2026), developing new air routes and enhancing future sea and inter-Bailiwick links”.
ED says our air and sea links are “the backbone for business and daily life” and weak links “constrain growth by raising costs for businesses and undermining confidence”.
“Strengthened connectivity will unlock tourism markets and trade opportunities, support freight resilience, stimulate investment and maintain essential routes vital to the community, while providing greater overall confidence in the economy.”
To do this, ED wants to review the Air Policy Framework and Air Transport Licensing Policy, develop new air routes and enhance inter-Bailiwick links.
Priority 2 – Tourism
Also described as an ‘ongoing’ priority, ED wants to “increase visitor numbers and visitor satisfaction”.
They plan to do this through “strengthening links with France and the UK, as well as capitalising on the launch of the British Airways service to Heathrow and its global reach”.
Targeted promotions, extending the shoulder seasons and developing a Tourism Product Strategy all feature in ED’s plans, along with working with the smaller islands of the Bailiwick to “showcase what all the islands can offer”.
Priority 3 – Trade links
Another ongoing priority is ‘enhancing’ our existing trade links with new ones.
This work started last year, ED said, with the committee pledging to work with on-island businesses to “identify and develop trade opportunities” with France, and the Commonwealth Enterprise and Investment Council.
Priority 4 – Finance sector
Work that arguably started five decades ago will continue with plans to “grow the finance sector”.
Over the next decade an existing Finance Sector Growth Strategy will be used to “facilitate further growth” in Guernsey’s finance sector globally and domestically.
This will include more money for Guernsey Finance (already funded by ED) and investment into the internal Finance Sector Development team.
Priority 5 – Innovation
2027 will see a focus on “improving technology adoption and productivity”.
An updated cross-government Digital and AI Framework (2026) will be paired with a new Innovation Plan, drawn up between ED and the Innovate Guernsey Board, which is due out next year.
Priority 6 – Legislation
Next year will also see ED complete a review of Guernsey’s Competition and Regulation Legislation and the work of the Guernsey Competition Regulatory Authority, which started this year.
Once complete, the review should provide information to help ED “unlock the renewable energy market through Electricity Strategy regulation workstreams” by this time next year.
Updating all the legislation will also enable ED to ensure the burgeoning renewables market evolves “in a stable, competitive and sustainable manner”.
The review will also provide the framework for new technologies and producers.
Priority 7 – Infrastructure
Over the next couple of years, ED plans to “maximise the economic value of the Guernsey Registry and the Aircraft Registry”.
Expanding the functionality and service offerings of both will help boost the amount of money they make.
Priority 8 – Long-term vision
Beyond 2027 ED wants to develop a “long-term vision for growth, including an investment framework and a forward-looking approach to skills, productivity and workforce participation”.
This will then guide future economic development through “clear success measures, economic indicators and priority actions to guide investment decisions, policy focus areas and long-term workforce development”.
Input
The economic work plan was put together following a round of consultation with business bodies, representing the different sectors that each feed into the island’s economy.
We haven’t been given access to the evidence or feedback the different industry bodies gave during that consultation process, but we know some of them are keen for the States to get moving on making changes that they believe could stabilise the economy.
The Institute of Directors, Guernsey International Business Association and Chamber of Commerce have recently cautiously supported the current Tax Reform proposals, warning that continued uncertainty itself was damaging the economy.
They jointly issued a blunt ultimatum to the States ahead of July’s debate: pass a credible financial package now, or risk paralysing the local economy through political indecision. A decision on whether the tax plans are approved is now not expected until early October.
Hospitality bosses said the three corporate groups did not speak for all business sectors though – warning that a majority of members of the Guernsey Hospitality Association wanted the States to “improve government efficiency, restore confidence in public finances and support economic growth”.
The Guernsey Retail Group then said that the island’s finances cannot be achieved through taxation alone. The GRG called for policies that encourage investment, support local businesses and strengthen the economy that ultimately pays for public services.
ED said the various sectors’ input on the economic work plan, which came earlier this year, helped inform the priorities listed above.
Deputy Kazantseva-Miller said her committee will continue to engage with industry and business groups regularly as work continues on the delivery of economic development actions.
“A consistent theme was the importance of measurable outcomes, and this will be a key theme as we progress the delivery of the workstreams under the eight priority areas,” she said.
The future
While 80% of ED’s time and money will be spent pursuing the above, the remaining 20% will be directed at “emerging themes that may develop into prioritised workstreams”.
This might include sea fisheries and the blue economy, the creative and film sectors, support for small and medium enterprises and the real economy, enhancing St Peter Port, and challenges facing the construction sector.
