Hospitality trade 'desperate' for government help

About 90 people from the sector attended a meeting at the Manx Museum

Energy bills that have become “absolutely crazy” and staff recruitment challenges were amongst a raft of concerns raised by hospitality representatives at a meeting with government ministers.

The 90 vendors gathered at the Manx Museum lecture theatre were described as “a room of people who are in a desperate business situation” by one trader at the meeting.

Suggestions for “urgent action” to help the industry included lower taxes on second jobs and reduced freight costs, alongside previously called for VAT cuts.

Treasury Minister Alex Allinson said government would work with the sector to understand how to "alleviate the various pressures" facing businesses.

Enterprise Minister Tim Johnston admitted that historically the sector had received "limited" government support while giving a presentation to the audience.

The gathering followed calls by the Licensed Victuallers Association (LVA) for politicians to support struggling pubs, bars, restaurants and hotels on the island.

'Crisis'

During a question and answer session, ministers heard how one business owner was “petrified” of soaring energy bills each month, while another had cashed in two pensions to keep his 160-year-old village pub afloat.

Others described the situation as a "crisis" and said without immediate support they faced going bust within months.

Alejandra Mateo Corfield from The Bohemian Coffee House said difficulties and delays securing visas could mean "there's not going to be anyone behind the counters".

Dr Allinson said he would look to reduce the "immigration backlog" and try to fast track visas for key essential workers such as chefs.

But he said some of the "longer term investments in terms of training and reducing the financial burden" would take more time and the government needed to "try do that within the confines of overall government expenditure, which is stretched".

Andy Saunders said urgent action was needed to help save struggling traders

There were also renewed calls for a reduction in VAT hospitality outlets on the island during the meeting.

But the treasury minister explained to those gathered that the move would mean a "significant loss of government income".

After hearing feedback on how the reduction of taxes on those with a second job could help the trade, Dr Allinson said he would "see if there's anything we can bring in relatively quickly to try and alleviate some of the staffing shortages affecting the sector".

Pub landlord and LVA chair Andy Saunders said the move would encourage residents to "come out and help with problems we have and also have more money to spend back into the industry".