Summary

To maintain a viable and profitable tourism industry, with increasing visitor numbers, the JHA Management Committee perceives the Industry' s most significant key issues (in no specific order of importance) to be:

• Generating real political will for action, rather than just talk
• Reducing the cost of transportation to the Island
• Combating inflation, essentially by allowing market forces to prevail
• Finding suitable and fairly-priced sources of long-term funding
• Achieving governmental de-regulation under some laws & liberalisation of others
• Opposing implementation of counter-productive government measures
• Improving marketing strategy, whilst still achieving sound value for money
• Ensuring adequacy of staffing & staff training

Suggestions for expanding, contracting, re-arranging, prioritising or otherwise enhancing the following list will be most welcome.

1 Review of Industry Decline

Undertake to review and address, as may be appropriate, the causes of the Industry's dramatic decline over the last 10 years. These causes would include the following:

A. Falling visitor numbers and how to stem the decline - though simply maintaining bed numbers will not increase the demand. On the other hand, increased demand can be expected to result in more beds being provided by hoteliers and prospective hoteliers, eager to improve their profitability.

B. For some 5 or 6 years, the pound sterling has been very strong in relation to other currencies, in particular the Euro. This has made Jersey prices uncompetitive in relation to other European and worldwide destinations. Although the strength of sterling has fallen back by some 15% against the Euro in the past year, it still remains very much stronger than when the Euro was first launched. Euro interest rates have also just been reduced by 0.5% whilst there has been no similar reduction in sterling interest rates. Accordingly, the pound is likely to stay quite strong for a while longer.

C. Jersey's high rate of inflation is two to three times higher than that of our main UK market, which currently provides some 89% of our visitors. This has resulted in the continual erosion of the Industry's profit margin because all our operating costs have risen annually by two to three times more than any increase we can hope to apply to any nightly room-rates. Inflation results simply from the excess of demand over supply. It needs to be tackled urgently & successfully, as the continual erosion of tourism industry profit margins simply results in more bed losses, entirely due to the lack of profitability. Could we not copy the UK legislation? Whilst not under the control of the Tourism Sector, of course, there are simple political decisions which would put downward pressure on inflation – e.g.

1. Remove restrictive practices and monopolies – e.g.UK builders to compete in open market with Jersey ones (who, in any event, have a huge ' on island' advantage).

2. States to reduce their total payroll, freeing staff for other sectors of the economy;

3. Markets, such as electricity, communications etc, to be subject to real competition.

4. Consider implementation of an Open-Skies policy as per rest of Europe

5. Mergers to be disallowed if they result in a market monopoly. Existing monopolies could possibly be required to reduce their monopoly.

D. The high cost of air transportation to Jersey (particularly for last-minute bookings). This problem has not been helped by the relatively high level of airport landing fees etc, nor by the retention of the route licensing system. Jersey Airport should be required to be more flexible and, in particular, to reduce charges and fees so as to encourage more airlines to operate low cost fares to Jersey. Airlines already playing their part - Consider an experimental scheme of greatly reduced (or even zero) landing fees for the slackest daily travel period (say 11am to 3pm, Monday to Friday). Consider encouraging main arrivals & departures on Fridays & Mondays.

E. The lack of evening entertainment for Jersey's "average" visitor, who is about 56 years of age. An entertainment centre with gaming facilities (a casino) is needed to help fill this gap.

F. Elderly regular visitors, who are dying off, are not being replaced by a similar number of younger visitors (our future market). Although the numbers of senior citizen visitors are increasing dramatically, they do still die off and thus need to be replaced by younger visitors. Will our future market always be in the 50+ bracket? Are we lucky that this is an expanding marketplace and should we be taking greater advantage of it?

G. The non-availability of adequate funding for businesses

1. either from banks or by way of government assistance (compared with many other competing jurisdictions);

2. to enable prospective new-blood buyers to enter the Industry in order to help hoteliers retire by selling to a replacement hotelier rather than to a property speculator.

3. to help hoteliers upgrade relatively poor product in order to remain competitive internationally.

4. Consider JHA proposal for deposit-taking banks to run jointly owned lending company offering commercial secured loans to tourism (0.25% of £139bn deposits = £300m).

5. Consider JHA proposal to act as broker to introduce private lenders to tourism borrowers on fully commercial and secured basis (2% over bank base rate is 5.75% pa compared with 4% pa average available to depositors).

6. Consider government grants / government guarantees / government soft loans to kick-start industry re-investment program.

H. The lack of an effective brokerage service to facilitate the sale of hotels as ' going concerns' (particularly on owner' s retirement), rather than being sold to property developers merely because they appear to be the only ones with the money to buy.

I. Marketing strategies which have been insufficiently effective. Should TV advertising be reconsidered? In placing ads, should more account be taken of such items as the number, location and accessibility of UK and continental airports serving Jersey? Internet e-mailing is very cheap but effective. Use to contact travel agents and tour operators worldwide, as well as the public. Consider smaller ad sizes but appearing more frequently & run-of-paper with colour photos as well as travel pages.

J. Insufficiently effective use of Jersey Tourism' s marketing budget - Indeed inadequate use of the total tourism budget. Should less money be spent on fixed overheads and personnel and more on advertising and promoting Jersey? Perhaps a sub-committee of Tourism Board as scrutineers of spending.

K. Other general causes of the decline might have been:

1. Some poor government decisions which may have already been addressed (e.g. lodging house embargo & prime sites policy – both seriously damaged tourism property values and confidence – both subsequently reversed but effects not yet filtering through).

2. A lack of political will (particularly on the part of the previous Tourism Committee) to ensure appropriate help for an ailing industry (no grants, no casino, no Sunday shopping, no liberalising of licensing, etc, etc).

3. Predatory property speculation, though this was possibly brought about simply by the total lack of ' going-concern' buyers.

4. Poor product – though this was possibly brought about simply by the non-availability of re-investment funding.

5. Other causes of decline may be noted but would probably be seen as having been beyond the Island' s control (e.g. foot & mouth, Sept 11th tragedy, Gulf wars, etc).

2 Regulatory Issues

A. Reduce planning, building control, housing and tourism Regulations,

1. Those which make alterations, extensions and improvements to Industry properties excessively costly, impractical or impossible (e.g. excessive sound-proofing requirements, minimum self-catering kitchen sizes, hurdles re expansion into adjacent dwelling property).

2. Tourism and Planning constraints on change of use, which have reduced the value of properties as security for loans. Despite the removal of the Prime Site policy, this is still a serious problem. Collate and catalogue examples.

3. Over-regulation of the Industry by States Departments including the Tourism Department, coupled with insufficient help to assist proprietors in overcoming bureaucratic hurdles – e.g. compulsory grading requirements, registering tariffs 16 months in advance, etc.

4. Housing regulations, which require management or similar accommodation within the physical boundaries of hotel sites to remain as A-H occupancy only.

5. Housing impractical restrictions on occupancy of on-site (or off-site) management accommodation.

B. Liberalisation of Liquor Licensing Laws:-

1. Consider having no fixed closing times but requirement to continue selling non-alcoholic beverages and food during last hour before closing. In the UK – and in many jurisdictions (where drunken and disorderly behaviour is no problem) establishments may close almost whenever they want to. [check detail]

2. It is illegal to have a drunk person on licensed premises – Would perhaps be more appropriate to prevent licensed premises from ejecting a drunk person onto the street until reasonably sober – Would ensure more care on who is allowed in and how much alcohol they are served.

3. permit more than one licensee for one set of premises to facilitate absence from Jersey without prosecution (a prosecution for absence occurred recently) and the issuing of locum or general manager licenses for trading groups.

4. review the definition of licensed premises and who may be on licensed premises out of hours (staff, guests, guests of guests (particularly conference guests) contract cleaners, security personnel, etc).

C. All new legislation should, as a priority issue, take into consideration and, if possible avoid, any detrimental impact on Tourism; e.g.:

1. The introduction of Consumer Legislation (which is needed to some degree to permit a reduction of quasi consumer controls under the Tourism Law).

2. The introduction of New Employment Legislation.

3. Forthcoming Food Hygiene Regulations.

4. Forthcoming Health and Safety Regulations.

5. Prospective implementation of a "Business Rate' , probably resulting in an increase in Parish Rates.

6. The impact on the industry of the introduction of a Minimum Wage (and implications for living-in deductions). Consider the need for a youth rate as per UK.

3 Political Issues

A. Generate real political will to make decisions and take actions that positively support the local Tourism Industry.

B. Oppose political decisions, taken contrary to the advice of the Industry.

C. The general failure, on the part of our Government as a whole, to give sufficient thought to the likely impact on the Tourism Industry of any changes in the Island's Policies or Laws. Indeed, in order to maintain a diverse, as well as buoyant, economy some degree of priority & consideration should be given to the well-being of the Tourism Industry.

D. Regulation of Undertakings 5-year rule, which has dramatically reduced the general availability of staff to do the job, also causing (in consequence) poaching and disproportionate annual increases in pay-rates. Unemployment now rising & vacancies falling. Recommend urgent and total abandonment of 5-year rule?

E. Law and order:

1. Consider zero tolerance for rowdyism, vandalism, etc - essential for the island' s tourist businesses, the finance centre and for local residents too.

2. Tackle lack of public tidiness – Virtually no enforcement or selling of Ôkeep Jersey tidy' .

3. Clarification of the legal situation where customers fail to the pay the bill or bounce a cheque – is it a civil or criminal offence? (Police often refuse to become involved).

F. Excessive cost of insurance following recent terrorism and other costly events

G. Consider the need for Government to review whether Jersey should now join the EU (possibly as an independent state). Are the reasons for not joining in 1973 now obsolete or still valid?

H. Consider implementation of ' anti-bureaucracy' law as per USA (check facts)

4 Future Tax and Spending Policies – Threats

A. Imposition of Vehicle Registration Duty (VRD) on hire cars (desperate effect on visitor numbers).

B. Implementing PAYE (particularly without a realistic threshold exemption level)

C. Implementing of Benefits-in-Kind Tax (particularly without exemption for providing food and accommodation for hospitality staff).

D. Implementing VAT or similar sales tax (unless hotel beds, restaurant meals & car-hire are exempted - VAT on shopping purchases by visitors could possibly be rebated to them on departure)

5 Product Action List

A. Major Conference Centre facility (and perhaps Festival Hall) within Fort Regent – Where do we stand on this proposal. How do we speed up its execution?

B. Golf Country Club – 36-hole – top class facility and location (such as Pontins site) and at least two other 18-hole courses. Bermuda is half our geographical size with half our beds but has twice as many courses.

C. Waterfront Hotel – Latest developments.

D. Ambience and image of St Helier and Island-wide waterfront, beaches, cycle paths and walks – What further work remains to be done and what plans are in hand?

E. Restore lost air links e.g. Heathrow and Zurich (recent news indicates Zurich may be re-started). Take pre-emptive action to prevent potential loss of other routes.

F. Lack of Sunday shopping and late-night shopping (many visitors expect both, especially day-trippers) – not just during tourism season but also such times as Christmas and January sales. Judging by the UK and American experiences, Sunday has become one of the most popular shopping days for locally resident families too.

G. Complete the Mont Orgeuil refurbishment as soon as possible – how much more talking?

H. Tackle local public transport issues, e.g.:

1. Bus Services – Advice concerning policy. Who ' markets' the bus services? Open up to competition?

2. Support for, and extension of, the Easylink bus service to attractions (or provision of a similar service)

3. Weighbridge area/bus station – When will this be made attractive to residents and visitors.

4. Taxi & cab services – unification – Control, quality and safety but do not restrict market supply of licences or at least ensure enough night-time licences to prevent long queues.

5. Train taxi and bus drivers in customer care.

6. Lack of parking spaces for shoppers to be tackled.

7. Consider free parking in shoppers' car-parks and at beaches for visitors' cars and hire-cars being driven by visitors.

8. Need for much more traffic management (e.g. Beaumont & Georgetown).

I. Attractions – Offer a Jersey (multiple) pass for sale, possibly including bus transport - how do we increase numbers to visitor attractions?

J. Allow weddings in open air, on beaches & headlands (so long as location is identifiable).

K. Lack of a covered shopping mall (consider covering King & Queen Streets? – See photo of similar in Milan – Galleria Vittorio Emanuele).

L. Using Tourism Development Funds for feasibility studies, such as Chateau La Chaire's lost garden & additional festivals & events (Mike Higgins International Air Display).

M. Using Tourism Development Fund to underwrite fixed, low-fare charter flights to Jersey from popular airports on Mondays and Fridays to encourage arrivals & departures on these days; (thus the Jersey tourism industry would be able to offer weekend breaks back-to-back with midweek breaks). Cost likely to be very low or zero.

N. Deep-water berth for cruise liners.

O. Review of street lighting in important tourism public areas (e.g. Airport Road from Beaumont cannon, St Brelade' s Bay from L' Horizon Hotel)

P. Consider need for a seagull cull for public safety and for coastal and town tidiness.

Q. A bridge-link to France – easy of access to Jersey for continental tourists – would reduce pressure on population growth, building costs in Jersey, etc – could possibly be self-funding over say 30 years (tolls, electricity, fish-farming, deep-water cruise berth, etc) - Evaluate whether a feasibility study is worthwhile but taking care not to undermine seriousness and value of Board' s other advice.

R. Airport Street Lighting to Beaumont canon and through St. Brelade' s Bay.

S. More benches in Liberation Square

T. Beach Cleaning and Facilities on Beaches i.e. cafes, showers etc.

U. Promote pride in Jersey and enthusiasm for inward tourism - tackle many local residents' lack of enthusiasm for tourism. They do not appear to realize the value of tourism to everyone, not only as Jersey's economic insurance policy but also to ensure air routes, sea routes, theatre, arts and culture, sporting opportunities, healthcare, etc. Publish the Jersey Tourism Newsletter to the Jersey population generally, including a copy on the Internet.

6 Employment, training and development

A. Expand job-types open to immigrant workers and do not contemplate restricting immigration at least until it is clearly observed that there are enough staff available to fill tourism vacancies.

B. Training & Development - Continuing investment in training for the hospitality sector (and indeed anyone who comes into contact with visitors – Beinv' nue, Welcome Host and Excellence through People.

C. Recruitment - support services, information, advisory functions.

1. Tourism Board & Administration

2. Provide tourism statistics more quickly – consider possibility of weekly production.

3. A forward-booking survey is needed.

4. Review presentation of accounting information to be more user friendly.

5. Review and update 10 year Tourism Strategy.