JHA members attending the Christmas Forum and Luncheon held at The Grand Jersey on Tuesday 20th December found out what plans Senator Alan Maclean, the Minister with political responsibility for hospitality and tourism, had for the industry when he delivered a keynote speech.  It was the first time he had spoken to hospitality and tourism leaders since his reappointment last month and he gave an upbeat message for the future of tourism. So what did his address include?

A PPP for Tourism – Let’s start with a proposal that the JHA first brought to the table in 2005. The Minister confirmed that the setting up of a new private-public sector partnership named “Visit Jersey”, a body to oversee the marketing of the industry, is close to becoming a reality.  The target is to have in place by Q1 of 2012 a truly independent Chairman and Board comprised of business leaders from Jersey and the UK. He confirmed that public sector funding for tourism will be maintained in 2012 and no costs will be incurred by the PPP for items such as IT, HR, administration and infrastructure thereby maximising the full potential of the marketing budget for marketing and promotional activity. 

These support services such as IT will not be provided by the States but would be outsourced to the private sector.  The PPP entity will have a total business focus with the M&P budget of c £6m continuing.  The Minister allayed any fears about service costs diluting the marketing budget with the M&P budget being ring fenced for 2012 and the threats of cuts will be less likely in the future with this type of entity operating. Senator Ozouf, who also spoke at the luncheon, confirmed his ongoing commitment to tourism and announced that in future budgets would be agreed for a three year cycle rather than annually as it is at present.

Commitments were also given by the Minister should tourism require any government top up or emergency funding as was the case during the Ash Cloud crisis and Foot and Mouth epidemic. The JHA has asked for a guaranteed timeline for the delivery of the PPP together with receiving a copy of the final draft report and financial plan that is in place for its delivery. This was clearly an very upbeat message for the industry and it was also directed to clear up any misconceptions or misinterpretations there may have been in the industry with the Minister fully confirming EDD’s commitment to working towards making this entity a reality very soon!

Local Jobs for Local People – The Minister also outlined details of a major new initiative to create tourism jobs for local residents – part of a plan to boost the sector and a component of a larger package of measures designed to substantially invest in order to overcome unemployment in the Island.  The plan is to fund courses that will provide the skills needed to allow locals to secure work in the sector in time for the next summer season.

The JHA will be part of this process and will be seeking to identify the number, experience, skills, qualifications and career aspirations of those currently unemployed, or at risk of displacement or redundancy on the Island as well as the skills needs of employers in the tourism and hospitality industry. This will have particular emphasis on the number, type and location of both seasonal and permanent full-time jobs and the pay structures, terms and conditions of employment associated with them. It will also consider the barriers preventing the take up of “on-island” employment, training and development opportunities in the tourism and hospitality sector by local residents together with the person specifications and skills sets required by employers to match to potential candidates and jobs. An assessment of how recruitment, skill training and development needs might best be met by local agencies and providers will also be considered.

The JHA has said that members will still want to employ the best person for the job and will work with government positively to maximise the chances of locals (5 year + residents) securing jobs but have also warned that this must done carefully and without any “knee jerk” reactions in negatively trying to control labour streams or returning seasonal workers who are so important to the well being of so many hospitality businesses.

Tourism Development Fund – The Minister confirmed that a further £700,000 has been earmarked for the Tourism Development Fund and ways the private sector may access this fund are being investigated.

Early Launch of 2012 M&P Campaign – The tourism marketing budget has been boosted by £70,000 to pay for an earlier launch of the 2012 TV advertising campaign. This will feature commercials in which Jersey born singer-songwriter Nerina Pallot and other local personalities will appear.  Jersey Tourism’s 2012, million pound TV campaign will launch on Boxing Day, one of the earliest ever launches for a Jersey campaign.  The timing of the TV campaign is to coincide with the Christmas holidays, when viewing figures are at one of the highest and will be seen by over seven million viewers. The campaign retains its positioning statement ‘the warmest place in the British Isles’ for the second year running, not only capitalising on the island’s warm climate, but also on its warmth of welcome and local people and of lasting holiday memories. 

Conference Centre – Had been included on the Jersey Conference Bureau meeting agenda on Wednesday 7th December – JCB agreed to review the position and the ED Minister confirmed a pledge to examine seriously any proposal put forward for the establishment of a Conference Centre in Jersey.

Meanwhile Earlier at the JHA Christmas Forum

With challenges prevailing for all businesses involved in the hospitality industry and going into a further uncertain period ahead, JHA President, Lyndon Farnham updated members of the JHA regarding association activity since the industry last met in August. He advised the following:

Three Year Business Plan and Budget – Work has commenced regarding the setting of objectives and the main activities of the association for the next three years.

Future Publications Strategy – Stay Jersey – Jersey Tourism is due to revert to the JHA with their findings.

Tourism Strategy – Oxera Report – Meeting took place on Monday 19th December when the draft of the Oxera Report was presented. Members were advised that following input from industry the Executive Summary would be reviewed to establish a more positive message and circulated to all concerned for any amends. The report is a pre-cursor for the Tourism Strategy which will be worked on by JHA and industry partners and will appear together before being included in the Strategic Plan Green Paper due for consultation release in February. The Economic Growth Strategy will also dovetail into the Strategic Plan.

Taxi Marshalls – A meeting of partners was held on Monday 5th December with a programme of action being agreed to be advanced, in particular Senator Farnham and Constable Crowcroft meeting with Senator Ozouf to try to have ongoing funding allocated for this scheme for 2012 and beyond.

Fiscal Policy Panel Meeting – JHA had attended a recent meeting to lobby on behalf of the industry.

Fete de la Mer – JHA is working with the Gorey Traders Association reference the arrangements for the 2012 event.

Jersey Harbours Opportunity Paper – JHA is devising a plan that will be brought back to the JHA Committee in due course.

Changes to Low Value Consignment Relief (LVCR) – Fulfilment Industry – Action Plan on Jobs – As mentioned earlier, a detailed JHA proposal has been submitted to the Social Security Chief Officer outlining a scoping and feasibility study and the implementation of an action plan for the recruitment and training of “locals” who are presently registered as unemployed.                   

Licensing Law – A paper outlining the details of the presentation made to the JHA Committee by EDD in October has been received and will shortly be available on the www.jerseyhospitality.com.

States Members – JHA will be organising an event in January to meet with States Members.

Tennerfest – Outcomes of a meeting with Tennerfest organisers and the JHA deliberated regarding the 2011 event and considered the responses made to a JHA survey to members. Members were advised that a food festival is planned in May 2012; that there had been a largely positive response to the event; it had been acknowledged that there were issues ref meaningful supplier support and varying views ref timeframes and price categories. As far as 2012 was concerned there would be a continuation of a more “Fest” led event – “Simply the Fest”; it was felt that the £10 price category would become less relevant going forward; the PR results and marketing of the event as well as the segmentation results were part of the events ongoing evolution; the timeframe for the 2012 event will be 6 weeks; it was agreed to release the Tennerfest JEP insert the day before the event commences - this would help to alleviate a slowdown of normal restaurant bookings prior to the event starting; the JHA to promote increased  supplier support and finally the need for banners and an increased number posters to promote event – so as to increase public awareness.

Jersey Recruitment – Members were updated ref the structural and operational changes made to Jersey Recruitment. The President advised that the operating costs had been reduced significantly as a result of the restructure.

Hotel Rates – JHA has had meetings with assessors – represented the industry best interests in the process.

Red Tape Review – Unfortunately owing to delays in receiving responses from some of the other organisations (last submission was only received 16th November – not the JHA), EDD are some way behind progressing this matter. The Information Systems Department of the States of Jersey is also carrying out a parallel review, seeking to evaluate how many additional returns can be put 'online', thus potentially saving business both time and effort in complying with States originated returns.  We believe it is important that any opportunity for joined up government - particularly where IT can be brought into play by the States to support local business - should be pursued as far as possible.  In this respect, whilst an initial review of responses has been carried out and provisional actions identified, it is proposed to hold a meeting with ISD prior to responding to the industry bodies involved, in order that the two ongoing exercises can be 'merged', with the intention of producing an enhanced overall output

EDD are endeavouring to circulate the combined Matrix to those organisations involved (including the JHA) sometime during the first week of January 2012

Membership Drive – JHA commencing membership drive in the New Year.

Membership Issues - GST – The issue GST was discussed by various members and the way the industry charges GST. At the moment it is the norm to include the tax in the price and this is seen as an additional cost to business. The problem is that at many times of the year the market is so price driven businesses are effectively paying the GST and not the consumer. The same applies to promotions such as Tennerfest.  Discussion has taking place amongst some members in the past that if adding GST “at the till” became an industry standard, it would not affect levels of business and it would be seen as helping the industry maintain the profitability badly needed.  This issue was opened up to the meeting with views ref maintaining it as an inclusive cost as well as treating it on an exclusive basis.  The outcome was that it should be left to each business to decide how they wanted to handle things. It was felt that business software should be adapted to show on the bill how much the customer has actually paid in GST.

Minimum Wage – The President confirmed that the JHA are considering a Proposition recently lodged by Deputy Southern for States debate on 17 January which will introduce uncertainty to the Minimum Wage increase that was recommended by the Employment Forum to become effective from 1st April 2012 i.e. recommending the MW be increased by 2.5% to £6.48 per hour from its current rate of £6.32. Deputy Southern believes the MW should go up further to bring it in line with average earnings. If the proposition is passed it would see the MW at £6.52 (4p more per hour than being recommended i.e. a 3.2% increase instead of 2.5%. The extra 4p per hour would mean a difference of a further £1.60 per week more for an employee on a 40 hour week which If approved would mean a total increase of 20p per hour and this does not include the extra Social Security contribution that would be paid by the employer.  In an island economy of increasing unemployment, a difficult employment law, higher wages and being asked by Government to employ more local staff, the JHA was considering its response.  

Following discussion it was agreed that the decision of the Employment Forum should be supported and upheld without further political interference.

What’s On App? - Presented by Barnes Publishing

Ian Barnes of Barnes Publishing presented the “What’s On App” to the audience. He reminded everyone that next year will be the year of Mobile Marketing and the rise of mobile and tablet usage will have a profound impact on media consumption habits in the future. Facebook's social news apps for example are opening up significant opportunities for publishers and only last month The Guardian revealed that its app has been installed more than 4 million times and is driving more than 1 million additional daily page views for the publication. The What's On App will replicate the What's On Guide but will be far more dynamic and interactive and will also deliver real time information. Potential visitors will be able to download it for Free before they get here which will enable them to plan their holiday entertainment in advance.

Interested? - A media pack can be obtained from Ian –  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Talking of IT - 5 lessons for hoteliers from Steve Jobs

Snippets

Arrivals and Statistics - The November Arrivals figures are now available to view online. The figures, once again, show improved numbers arriving by sea: Nov 2011 versus Nov 2010 shows an increase of 8.5% with a Jan to Nov year-on-year increase at 4.5%. Total arrivals also show an increase of 2.5% for the year.  October Statistics are also now available to view online. Staying leisure visitors throughout October 2011 show a 6.7% rise against October 2010.  For year-to-date figures January - October 2011 versus 2010, staying leisure visitors from the continent are up by 11%, yet are slightly down at -3.2% for those from the UK.  Overall, total staying leisure visitors throughout the year are up slightly at 0.4%.  AND For the Year? - Visitor numbers are expected to top 700,000, with nearly half of these (330,000) being staying leisure visitors, spending £230,000,000 in the Island, Jersey’s second industry has performed well against the bleak economic climate. Unfortunately business visitors to the island are about the lowest for the past five years, as the finance sector struggles to recover and attract new business. The hope is that they will match last year, with 65,000 staying business visitors.

AND in 2012? – Will UK events impact on UK holiday plans and Jersey visitor numbers? – there will be the London Olympic Games, the Queen’s Diamond Jubilee celebrations during June half term and European Football Championship in June, WE SHALL SEE.

Double Tax Deal – Poland – Thousands of Polish workers will not have to worry about the threat of their wages and pensions being taxed in both Jersey and Poland as a result of a double tax treaty signed by officials from Jersey and Poland.

Finally – On behalf of our President, Committee and everyone at the JHA, we wish all our members a happy Christmas and a healthy and prosperous New Year.  We will be closed over the festive period, re-opening on Tuesday 3rd January 2012. Thank you for all your support during 2911.