THE Government’s Economy Department has put its weight behind plans to build a 179-room hotel next to Strive Health Club in St Peter – despite voicing concerns over whether the develop will bring the economic value to the Island claimed by its backers.
In a submission to the outline planning application to build a “premium hotel” with guest and staff rooms, conference centre spa and swimming pool, the department writes: “[We are] supportive of the creation of new visitor accommodation which aligns with the strategic objective to unlock investment in accommodation and ensure the capacity exists to grow the visitor economy as outlined in the Visitor Economy Strategy.”
It adds: “There is a need for investment in new supply that will lead to modernisation of the accommodation offering and enable Jersey to tap into new markets. The department is supportive of the development which will bring a number of benefits to the Island.”
However, a second submission, which is an email to Planning officers from an officer in the department written almost three weeks before the official response, contains more detailed observations.
The email’s author explains that the correspondence sets out comments and questions for the department to ask the applicant from an economic perspective, based on the applicant’s Business and Economic Plan.
The email says: “The figures presented in the business and economic plan look good. But closer inspection reveals both a number of inconsistencies in numbers, but also optimism bias. For example, staffing numbers and costs look too low for a 4/5 star establishment, average rate of £202 looks very high and occupancy rate also looks high.
“In short, the revenue forecast looks overly optimistic and the costs look unrealistically low.”
The submission also says that the “assertion that the new hotel will produce Gross Value Added [per full-time equivalent] staff double that of the sector average is implausible”.
It concludes: “In short, the economic value has likely been over-stated by the applicants” but adds “nonetheless, the investment in new, and different visitor accommodation could be good for Jersey’s economy and visitor offering.”
The major application, submitted by Strive, has generated more than 100 public comments, the vast majority of them supportive.
However, former Planning Committee chair Alastair Layzell, while supporting the principle of new investment in tourism, has voiced concern about the scale of the proposed hotel.
