JERSEY’S hospitality industry has ‘grave concerns’ about GST being added to accommodation this month in what is an already difficult time for tourism.

The Jersey Hospitality Association, which says that GST will make Jersey less competitive with UK destinations, was unsuccessful in deferring the tax for another year when it met former Treasury Minister Terry Le Sueur in November. After millions of pounds spent on hotels by the private sector recently, the association felt that the government ‘should do their bit’ and delay GST on tourism accommodation for longer.

The States originally granted accommodation providers a zero rate for the first year of GST and the JHA was lobbying to extend that time scale in view of the current economic climate. But despite the association’s efforts, hotels and guest houses are facing the three per cent tax.

JHA chief executive Gerald Fletcher, pictured, said that the association raised the issue of deferring GST for another year with Senator Le Sueur in the light of the credit crunch.