GST ‘a disaster’ for Island hotels

Saturday 19th April 2008, 12:00AM BST.

HOTELS and guesthouses have had to invest thousands in preparing for GST.

Even though holiday accommodation will not be charged GST until January, the tax is already costing the industry time and money.

Richard Chivers, manager of the Revere Hotel, said that it would cost the company about £25,000 a year to cope.

‘It’s an absolute disaster for Jersey hotels,’ he said. ‘We need to have the system reprogrammed and train staff to work it, and all my brochures need to be recalculated. For a small to medium-sized business like us, it is difficult to upgrade our system.

‘This is just another straw to break the camel’s back. It is something which will, on its own, increase the Island’s rate of inflation. It’s a lot more hassle than the States realise.’

Mr Chivers said that GST would put people off coming.

‘The perception is duty-free, sunshine and clean beaches, and that perception is fading.’

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