John Singer said that despite a summer blessed with good weather and a strong line-up of events, Herm’s hospitality sector continued to face significant financial pressures, with the island forecasting a loss in line with last year as the spiralling costs of running the island continue to outstrip its income.
‘The proposed introduction of GST is a serious threat to an already fragile hospitality industry,’ he said.
‘A further loss of 5% of turnover would hit every business in the hospitality sector hard, at a time when many are already on the brink, following years of escalating costs since Covid. This isn’t just a small squeeze – it could push multiple hospitality businesses into closure and deliver a damaging blow to the wider Guernsey economy.
‘Introducing further cost pressures will only further undermine the viability of Herm and place real jobs, livelihoods, and a key part of Guernsey’s tourism offer at risk.’
GST of 5% is currently due to be introduced in 2027. However the States is due to debate future tax policy next summer, with a Policy & Resources working party considering alternatives.
Mr Singer said despite events such as the new Six Fest Cider Festival, summer entertainment, and a range of corporate and private functions being well attended, overall visitor spending has noticeably declined.
‘We’ve had a fantastic summer in many ways, but the reality is that people are spending less across the board,’ said Mr Singer. ‘Running an island of this scale and uniqueness is expensive, and unfortunately the current level of income is not keeping pace with ever-rising costs in today’s economy.’
He added that unlike most communities where taxes funded vital infrastructure, Herm relied entirely on its tourism and hospitality revenues to survive.
‘Many local people are not aware that, although Herm forms part of the parish of St Peter Port, the island must fully support itself through the income generated from guests and visitors, including meeting all costs of providing electricity, water supplies, waste disposal, sewage disposal, transport of cargo, and other essential services.
‘This makes the support of visitors, both local and off-island, absolutely critical to its ongoing operation.’
Mr Singer has previously said the cost of running the island keeps escalating, with costs rising 13% in 2024.
More than 4,000 people join island’s loyalty scheme since spring launch
Herm’s leaseholder has said that a Herm loyalty scheme introduced in the spring had proved a great success.
The scheme rewards guests with 3p for every £1 spent on food and drink and 5p for every £1 spent on accommodation or shopping.
‘Since launching less than six months ago, more than 4,000 members have joined the scheme,’ said John Singer. ‘We have had excellent feedback from both local and visiting guests.’
Another new addition this year was Six Fest, a refreshed version of the traditional Ale & Cider Festival, held over three days at the Mermaid Tavern in both June and September.
‘This proved a real hit,’ said Mr Singer. ‘By significantly reducing prices and creating a lively, great-value atmosphere, the event drew excellent crowds.’
He said another bright spot has been the island’s 19 holiday cottages, which had a relatively successful year following the start of a comprehensive refurbishment programme.
‘The final eight cottages will be completed this winter, further enhancing the quality of our accommodation. To encourage more visitors during the quieter months, we are continuing our winter cottage promotion.’
Herm is working with Travel Trident to subsidise boat fares for this year’s Christmas shopping weekends at the end of the month and into December and Mr Singer said this meant the lowest fares for many years.
Mr Singer is chairman of the Starboard Settlement Charitable Trust, through which the company Herm Island Ltd has run the island for the last 16 years, and, following a lease extension in 2017, is set to remain in control until 2069.
He said that despite ongoing external challenges, including high airfares, travel disruptions, and a UK ferry timetable that remains poorly aligned with travel to Herm, the island continued to make strong strides in its marketing efforts.
‘Following the success of Brittany Ferries in boosting travel to Guernsey this year, Herm also plans to increase its marketing focus on France in 2026, opening up new travel opportunities and tapping into fresh markets,’ he said.
‘In September, we welcomed a group of leading influencers and a smaller delegation of national journalists specialising in wellbeing tourism, all coordinated through Visit Guernsey,’ he said.
‘Guests were charmed by the hotel’s unique character and the island’s natural beauty; coverage that will help extend Herm’s reach to new audiences and support our visitor economy.’
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