On Tuesday a proposition from Deputy Lindsay Ash calling for initiatives such as happy hours and two-for-one deals to be allowed was passed by 26 votes to two. The proposition means that the Licensing Assembly will be permitted to allow establishments to advertise drinks promotions.
Although the final decision will rest with the Licensing Assembly, Deputy Ash said the proposition would help the hospitality industry to boost its profits after Covid-19.
‘This won’t hit the wealthy drinking pink champagne on the terrace of the Grand or The Royal Yacht,’ the Deputy said. ‘It is ordinary men and women who want to have a drink with friends. I have used the term ‘‘happy hour’’ but this is about price promotion. Some people are of the view Jersey will be turned into Ibiza, with foam parties outside the Cock and Bottle, and that isn’t what this is about.’
However, chief executive of the JHA Simon Soar said the organisation was ‘extremely disappointed’ to see the proposition approved, ‘especially after it follows three years of damaging duty rises’. He said that instead of providing a much-needed boost to the sector, drinks promotions would ‘destroy much of the profit the industry needs to make to survive this difficult year’.
‘The industry has not been consulted on this measure but there have been numerous occasions when commentators have articulated how damaging this would be,’ said Mr Soar. ‘Pubs, restaurants and bars have seen a steady erosion of any profits they might hope to make as, every year, the States Assembly votes to increase the duty charged on alcohol in the budget.
‘All that drinks promotions will achieve is an increase in government revenue as it will receive the same import duty from each drink sold while the business selling it will receive less in return,’ he added.
‘By allowing a race to the bottom on price, drinkers will naturally take advantage of the cheapest prices, leaving the local businesses that provide the service with little reason to say “cheers” this year and in 2021.’
