Further £8m. in support for tourism

And overall it is estimated the States will have covered more than half of the sector’s summer’s losses.

Policy& Resources has agreed the measures, which will cover the period July 2020 to March 2021.

The overall estimated bill has risen from £6.5m. to £8m. as a result of the reassessment of grant levels, the introduction of star rating awards and the offer of two options for businesses to choose their means of support.

This, together with payroll support paid in the March to June 2020 period, amounts to total support of £11.8m., which accounts for about 23% of the overall business support measures covering all sectors across the Bailiwick.

This support is estimated to cover between 55% and 60% of the overall proportion of the sector’s losses during this period.

An independent report was produced by the Offshore Group, which has informed the final measures.

Policy & Resources vice-president Lyndon Trott has been the lead for the Covid-19 financial support measures.

‘While it has taken longer than expected to finalise and communicate the final support package, we felt it important to wait until the final report from Offshore had been received and taken into account in amending the final package,’ he said.

‘We’ve worked hard to finalise the support for visitor accommodation businesses and I hope the availability of options and the increased levels of funding we’re providing will give them confidence for the coming months.

‘We recognise that further challenging months may lie ahead beyond this period and we will continue to monitor the situation, liaise with the industry and take any appropriate further steps to respond to the changing picture.’

Deputy Trott said they had been mindful about the money used for the scheme.

‘It is taxpayers’ money that we are using to help these businesses and we must use it carefully and proportionately,’ he said.

‘But we also know how important these businesses are to the tourism industry and to other industries more widely, as well as to our quality of life in Guernsey, such that islanders will no doubt support a reasonable level of funding for them.’

The main features of the revised scheme are that visitor accommodation businesses will have the option to receive support either through a payroll scheme or through the new grant scheme and the grant scheme gives visitor accommodation businesses a level of support per room/per unit, depending on the type of accommodation they provide.

The grants will also now be awarded according to star rating categories in recognition of the differing cost challenges faced by different businesses within the overall sector and grant levels have been enhanced in a number of areas for each of the sectors – hotels, self-catering and guest accommodation – with only a very small number of two-star hotels seeing a decrease in the original grant levels announced, which is a reflection of the further analysis undertaken, and sub-sector needs.

The level of funding for payroll co-funding will be set at 80% of minimum wage as the standard package and 100% at the enhanced level for businesses that have demonstrated a clear need.

Existing qualifying turnover thresholds will not apply in this case and access to the scheme will be automatic if selected over the grant scheme.