A Guernsey hotelier believes the introduction of a Goods and Services Tax (GST) could encourage tourists to choose other holiday destinations.

The island’s politicians are considering introducing tax reforms, including 5% GST, reduced income tax rates for incomes below £30,000 and social security reformto start in 2027.

Will Haegland, general manager of the Pandora Hotel in St Peter Port, said: “People are looking at prices and costs and if our prices rise further it could put people off considering Guernsey as a holiday destination. »

MP Peter Roffey, who led plans to introduce a GST, said the island’s politicians had made the necessary decision to raise money for public services.

Mr Haegland said his main concern was the impact of a GST on the island’s competitiveness.

“That means everything is going to go up, in terms of prices, food and drink as well as accommodation, and that will come back to the consumer,” he said.

“This will potentially impact our competitiveness in the market.”

An amendment to the state’s GST plans has been passed, meaning the government will have to explore the pros, cons and impact of applying the tax to food items.

Mr Haegland said he wanted to know how a GST would work in terms of reporting the tax to the government.

“If you look at some European countries, they have a different tax rate for suppliers of accommodation, food and beverage than for other goods and services,” he said.

“I think that could be a consideration if we want to become a destination and rely on tourism which is an important part of the economy.”

Guernsey Alderney airline experienced disrupted season and the island ferry timetables for 2025 have not been released due to the government’s choice of a new service operator.

Mr Haegland said: “I’ve spoken to two guests who are looking for September next year but they can’t book because there are no ferry times, which is the same for people coming from France.

“This all adds to the uncertainty and problems Alderney has faced this year.”

Mr Haegland said the hotel, operated by the same family since 1972, was unlikely to close, but travel concerns and GST could impact its operation and occupancy levels.

“Last month was considerably lower than last year. It is now November and we are hoping that last year’s numbers will be met, but that is not the case at present,” he said. he declared.

“These things have an impact and if you see that it costs you more to be open than to be closed, being closed during the winter might be something that some operators choose to do.

He added: “The main thing for us is that we have traffic to the islands that supports tourism and that we are competitive in the wider world of tourism and travel.”

The island’s politicians have been discuss the introduction of a GST on the island to plug a hole in public finances for several years.

Roffey, who successfully led the debate last week on the introduction of a GST, said there was no better way to raise the necessary money.