The arrangement that allows it is due to end early next year, and there is an awareness within the industry that it is a balance that needs to be managed carefully.
Figures in the States’ latest quarterly travel bulletin show that in April, 23% of open accommodation units were occupied by long-stay guests, up from 15% in the same month a year earlier. The proportion eased to 13% in May and 12% in June.
The effect on the headline occupancy figures is significant. Occupancy of open units reached 84% in June, but long-stay guests accounted for 10% of that.
‘Accommodation being used for business or relocation purposes is a broader economic issue,’ said hotelier and Tourism Advisory Board co-chair Charlie Walker.
‘We need to ensure our tourism infrastructure isn’t being quietly eroded in the process. A strong visitor economy will encourage operators housing long-stay guests to move back towards genuine leisure guests, as they bring a higher spend.’
The practice dates back to the Covid pandemic. Since March 2020, temporary planning exemptions have allowed accommodation providers to take in non-visitors and long-stay residents all year round, rather than only self-catering units during the winter let period. Those exemptions are due to cease at the end of February 2027, after which establishments are expected to revert to their usual use as visitor accommodation.
Deputy Lee Van Katwyk said the Economic Development Committee would also have to consider whether the annual permission allowing hotels to provide longer-term accommodation should continue as tourism recovers.
‘We really have to question whether that long-stay exemption is going to continue, or do we want to ensure that we’ve got the bed stock for the reason that it was originally created – tourism?’ he said.
‘It’s a live discussion. We’ve got officers working in the background to get us the information to make the decisions as and when they come towards the end of the year.’
Alan Sillett from the Guernsey Hospitality Association said the visitor figures ‘translate into good occupancy levels, which for our accommodation sector is very much a case of making hay while the sun shines’.
‘The summer months are when businesses need to maximise their trade and build a strong foundation ahead of the quieter off-peak periods later in the year.’
He said the rise in business guests should not be interpreted as the industry moving away from tourism.
‘Ultimately, the accommodation sector needs both tourism and this longer-stay business at present,’ he said.
‘The priority must be to grow the tourism market further while, at the same time, addressing the housing shortage.’
Ms Walker agreed that the issue needed to be kept in perspective. She said the TAB was monitoring the situation.
‘The data shows a meaningful uplift in genuine leisure visitors, so I wouldn’t characterise this as a sector quietly shifting away from tourism.’