The Chief Executive of the Jersey Hospitality Association has said the States Assembly vote to allow drinks promotions on licensed premises will do little to help the industry which is already struggling due to Covid-19. Deputy Lindsay Ash’s proposition lets businesses offer promotions on drinks until the end of next year, but JHA CEO Simon Soar says this will destroy profits the industry was hoping to make: “The JHA is extremely disappointed to see this proposition was approved by States members especially after it follows three years of damaging duty rises. Far from providing a boost to the hospitality industry, allowing happy hour promotions will destroy much of the profit the industry needs to make to survive this difficult year.
The industry has not been consulted on this measure but there have been numerous occasions when commentators have articulated how damaging this would be.
Pubs, restaurants and bars have seen a steady erosion of any profits they might hope to make as every year the States Assembly votes to increase the duty charged on alcohol in the Budget.
All that drinks promotions will achieve is an increase in government revenue as it will receive the same impot duty from each drink sold while the business selling it will receive less in return.
By allowing a race to the bottom on price, drinkers will naturally take advantage of the cheapest prices leaving the local businesses that provide the service with little reason to say ‘cheers’ this year and in 2021.
The JHA had hoped to see some leadership from the Government on this, but instead our politicians have caused further worry for members of the hospitality industry who are already facing reduced support as we head into winter.”