Herm management fears a £2m. loss
HERM could lose up to £2m. due to the lockdown, management has said, as it confirmed it did not want to refund holiday deposits because it would add to the financial pain.
The lockdown has been eased on Herm, but no residents are allowed to leave and no visitors are allowed in.
There are 36 permanent staff on the island, many of whom are living there with their families.
Normally there would be five return sailings a day between Guernsey and Herm at this time of year, but all public sailings have been suspended.
‘The current directive from the States of Guernsey is that Herm residents must remain completely remote, even from Guernsey, and since the lockdown on 23 March, no residents have left, and no visitors have been to the island,’ the island management wrote.
‘We are extremely fortunate in that there have been no Covid-19 cases in Herm and the States has now given permission for residents to re-commence certain repairs and refurbishments, providing social distancing and hygiene measures remain strictly enforced. This will greatly ease our ability to prepare for the time when we can once again welcome you to Herm.’
The island’s staff have been trying to handle bookings for the upcoming season, which have been cancelled. They will start processing bookings from Monday 4 May and are contacting customers, starting with those from March and April.
The customers are being emailed information about how to transfer their deposit to a future date or request a credit note.
‘However, it will take some time to work through everyone, so we would appreciate your continued patience and if you could please wait for your email to arrive,’ the management wrote.
They advised people to contact them by email and only call in exceptional circumstances.
The island’s management has explored any assistance which might be available from insurers and the States of Guernsey. ‘Herm’s insurers have stated that our policies cover flood, fire etc., but not restrictions imposed due to a global pandemic,’ the management wrote.
‘On the other hand, the States has helpfully provided support with salaries to minimum wage levels for an initial period, which will amount to some 50% of salaries and will hopefully be extended throughout the lockdown. This assistance has been at a slightly lower level than in the UK, but payment has been implemented more speedily and we are extremely grateful for this support.’
However, the States is not providing any assistance with refunds of deposits or ongoing loss of revenue due to the island being closed.
‘Our aim is to keep Herm’s core team of 36 permanent staff in place throughout and beyond the lockdown period, so that we can provide you with the holidays you all enjoy so much at the earliest possible time,’ management said.
‘It will not be easy to re-open the island’s facilities in full once lockdown is over, as we are without our usual extra 100-plus seasonal staff, but we will do our very best to offer what we can.
‘Securing your holidays for future years will come at a very heavy cost to Herm this year; nobody knows when restrictions will be lifted, but we estimate Herm’s loss may be around £2m. Refunding deposits would add to the pain so we hope those guests who have not received a refund from your insurers will support us in transferring your deposit to a later time period when restrictions are lifted.’
John and Julia Singer took on the lease for Herm in 2008.
