THE hospitality industry has bounced back from “devastating setbacks” caused by the pandemic, according to its leaders.
However, Jersey Hospitality Association co-chief executives Marcus and Ana Calvani further said that the sector was “still far from out of the woods”, with cost-of-living pressures and duty increases presenting an “uncertain” picture for many businesses.
More recently, restaurants, hotels and cafés were hard hit by a gas outage after Island Energy was forced to shut down its plant last weekend, which left many businesses unable to provide hot meals to customers, causing several bookings to be cancelled. Supplies began to be reconnected last week.
The latest report from Statistics Jersey highlighted resilience in the sector, with the largest percentage increase in value added to the economy observed in the ‘accommodation and food service activities’ – hospitality – sector.
The figure had increased by 24.7%, continuing the sector’s recovery from the Covid pandemic, and the sector contributed £225.8 million to the economy in 2022, an increase from £181.1 million in 2021.
Mr and Mrs Calvani said: “Whilst hospitality businesses are still recovering after months of being forced to stay closed during the pandemic, this shows just how adaptable, dynamic and resilient our industry is, and the potential for growth meaning that hospitality can and will become a larger chunk of our Island’s overall economy ‘pie’.
“This is thanks to the incredible business owners and entrepreneurs that believe in our industry’s future on our Island and are willing to invest and take risk. These people need to be further supported and championed by our government.
“Removal of barriers to business, industry strategy backed in a collaborative way by all our ministers, uniting with other industries and further supporting our industry will only see the economic contribution continue to grow.”
They said that while businesses in the sector were beginning to “thrive”, “it is taking time to make up for the devastating setbacks of 2020 and 2021”.
They continued: “If you add in the cost-of-living crisis, 11% increase in minimum wage, 9% proposed duty increase, 12% hike in utility bills, plus a number of other significant increases in the cost base that are coming next year, the picture remains uncertain for many businesses, so we are still far from out of the woods.
“We really need to take a step back and look at the long-term impacts that these increases will have on how competitive we are as a visitor destination, how our connectivity as an island will be impacted and the detrimental effect to Islanders’ quality of life.
“Hospitality remains a vital part of the economy, supporting the activities of the finance industry and other sectors, as well as attracting visitors from around the world and a major export product for Jersey. Our sector has proven its worth time and time again and that’s recognised by the politicians and officials that are concerned with growing Jersey’s economy. We continue to work towards joining the dots that make up our economy and linking our industries, including agriculture and fishing, so that there is a broad base and balance that the whole Island benefits from.”
