A “TOURIST tax” is one of the initiatives the government is examining to boost investment in the Island’s struggling tourism industry, according to a new report.
The Visitor Economy Strategy – published this week by the government in partnership with Visit Jersey and other industry representatives – sets out 48 policy priorities grouped under various strategic objectives including connectivity, accommodation, sustainability, and digitalisation.
It also outlines the challenges facing the sector, including visitor bed stock reaching “critical levels”.
The strategy highlights Jersey’s falling visitor numbers – from 771,000 in 2019 to 475,000 in 2022 – and outlines the potential of a “bed tax” to raise funds for the tourism and hospitality sectors in the face of this decline.
Many locations around the world have such a tax, also known as a “tourist tax”, which involve small fees levied on visitors.
They are often based on length of stay, with the funds generated used to pay for improvements to infrastructure.
Barcelona has had a tourist tax since 2012, while Valencia and Venice have just introduced one. German cities Berlin, Hamburg and Frankfurt have a “bettensteuer” (“bed tax”) of around 5% of the visitor’s hotel bill.
As for the accommodation sector, the government explains in the document that it will liaise with the Treasury Department about the establishment of an “infrastructure fund”.
Meanwhile, although the Housing Minister last year announced a clampdown on Airbnb as part of moves to combat the housing crisis, it was included as a key prong of the strategy, which said a clear policy needs to be developed to allow growth in the short-term holiday-let and self-catering market.
The government outlines plans to “work together across the economy, housing and planning policy areas to increase the clarity of existing policy relating to the development of self-catering accommodation”.
The strategy also suggests “unlocking development on government-controlled sites” as a way to tackle the “critical levels” of tourist beds in the Island.
It explains that, given the challenges around cost and competition for sites, government would “need to exercise its powers” to ensure sites are made available for the development of visitor accommodation and “not lost to other uses”.
This includes the allocation of sites on government land, as well as the compulsory purchase of assets which are deemed “strategic”.
The strategy also emphasises the need to improve the appearance of St Helier to “enhance the visitor experience”.
Citing a 2022 audit conducted by professional services company Colliers International – which describes the town as “only moderately enticing” and the public realm as “dated” – the strategy explains that “work needs to be done to ensure all facilities become a factor of delight not disappointment” for tourists.
The strategy goes on to say that road and building works continue in Jersey even during the summer season “with little regard for how this impacts the experience of the visitor”.
It explains that “in many destinations such works are not permitted to reduce negative impact during the high season which is key to the economy’s functioning”.
Launching the strategy, Economic Development Minister Kirsten Morel said that it was about more than just holidaymakers coming to the Island.
“…[It] includes all the events, experiences, businesses and people who serve and interact with visitors. It also includes all Islanders, whose spending on hospitality is so important, as well as people who are visiting friends and family, and business visitors,” he said.
“Implementing this strategy will require the efforts of not only government but also the industry and other stakeholders. This will take time, but it is necessary if we are to achieve the goal of becoming a globally recognised, sustainable and enriching destination.
“We all have a part to play in the future of the industry, and that is an important message for all Islanders: you are part of the visitor economy and can contribute to its future.”
