Hospitality firms fear GST could increase costs

The Guernsey Hospitality Association says its members have raised concerns about the impact of a goods and services tax (GST) on the sector, ahead of next week's States debate.

Businesses are worried about introducing a new consumption levy at a time when many firms are already facing significant financial pressures.

Members also highlighted economic growth, investment and improved air connectivity as important to strengthening Guernsey's long-term finances.

They said the States should first demonstrate public sector reform, improved financial management and delivery of planned efficiency savings before asking islanders and businesses to contribute additional tax.

The association said hospitality businesses have already absorbed significant cost increases in recent years, including higher energy bills, food and drink prices, wages, recruitment costs and rents.

It warned the GST+ package proposed could place further pressure on an industry it said played a vital role in Guernsey's economy.

The group said rising operating costs could affect competitiveness, consumer confidence and visitor demand, with wider implications for spending across the local economy.

It added that it remains committed to working constructively with the States on sustainable solutions for Guernsey's long-term financial future.

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