The Guernsey Hospitality Association recently invited members to share their views on the proposed GST+ package ahead of next week’s States debate. The responses received showed a high degree of consistency across businesses, with several clear themes emerging.

The overwhelming message was not simply opposition to GST itself but concern that government should first demonstrate meaningful public sector reform, improved financial management and delivery of its proposed efficiency savings before asking islanders and businesses to contribute additional taxation.

Members repeatedly highlighted the importance of growing the economy, supporting business investment and improving air connectivity as more sustainable ways of strengthening Guernsey’s long-term public finances.

For the hospitality industry specifically, members expressed concern that GST, together with higher employment costs, would further increase operating costs, reduce competitiveness and potentially impact visitor demand. Guernsey’s hospitality sector is already operating under intense financial pressure, having absorbed substantial increases in energy, food and drink costs, wages, recruitment, rents and the introduction of the secondary pension scheme in recent years. Introducing a consumption tax at a time when many businesses are still managing these significant cost increases risks weakening consumer confidence, reducing spending across the local economy and placing additional strain on an industry that plays a vital role in Guernsey’s economy.

While respondents suggested a variety of alternative revenue options, there was no single preferred alternative. What united the responses was a strong belief that improving government efficiency, restoring confidence in public finances and supporting economic growth should come before introducing a new island-wide consumption tax.

The Association recognises the need to secure Guernsey’s long-term public finances and remains committed to working constructively with the States on sustainable solutions.

However, members believe that restoring confidence through meaningful public sector reform and creating the conditions for stronger economic growth should form the foundation of any long-term fiscal strategy.