Economic Development has brought tourism businesses together at a conference to discuss how to operate a scheme which would charge visitors a small fee on arrival in the island.
The committee’s tourism lead, Lee Van Katwyk, expedited discussions on a visitor levy rather than awaiting the uncertain outcome of the States’ tax debate which will resume at the end of this month but may not conclude until later in the year.
‘The States is under resolution to investigate the introduction of a visitor levy in lieu of a goods and services tax,’ he said.
‘I took the decision to begin the visitor levy work before the GST debate concludes so that we can be best placed to hit the ground running with a new revenue stream should GST fail to be implemented.’
It has been estimated that charging every visitor a few pounds could raise up to £6m. a year – equivalent to nearly one-quarter of the income expected from GST once income tax reductions have been taken into account to relieve pressure on lower earners.
UK prime minister Andy Burnham announced last week that he wanted to hand England’s mayors the power to introduce an uncapped tourist tax on overnight accommodation, a move strongly criticised by hospitality bosses.
But the Guernsey Hospitality Association welcomed speeding up work on a visitor levy locally and confirmed that it supported the idea on the condition that the income raised was retained for the industry and not ploughed into States’ general revenue as GST receipts would be.
‘Our position has always been that, if designed correctly and developed in partnership with the tourism and hospitality industry, a visitor levy could provide a sustainable source of funding to support the promotion and development of Guernsey’s visitor economy,’ said the association’s president, Alan Sillett.
‘Any funds raised through a visitor levy must be ring-fenced and invested solely in tourism-related initiatives which directly benefit the industry and the island’s visitor economy.
It should not become a general revenue-raising measure.’
Economic Development’s work plan for the States term, published recently, stated that one of its priorities included ‘improvements to the tourism product and scoping opportunities with a visitor levy’.
An amendment which proposed introducing a visitor levy but not ring-fencing the proceeds for the tourism industry was narrowly rejected by deputies in July, but the idea could be revived in new amendments ahead of the Assembly resuming its tax debate two weeks today.
Deputy Van Katwyk said he had decided that preparations for a visitor levy could not wait for that debate to conclude.
The association has argued that additional funding could help Guernsey compete with destinations which invest more heavily in tourism marketing, infrastructure and visitor experiences.
Mr Sillett said the association believed that industry support was essential to the success of a visitor levy scheme.
‘Our position has remained consistent since we first presented our proposals to States members four years ago and we remain committed to engaging constructively with government and the wider industry as discussions continue,’ he said.
Tourism consultant Fiona Drane told States members last year that a well-designed tourist tax could give Guernsey the ‘tools it needs to compete and thrive’ but stressed the importance of transparency and industry involvement.