In response to mounting concerns from the Isle of Man hospitality industry, the Government has announced a series of measures aimed at supporting bars, pubs, cafes, and restaurants as they face increasing financial pressures.

This announcement follows an urgent ‘call to arms’ meeting held last month at the Creg-ny-Baa, which was attended by members of the Licensed Victuallers’ Association (LVA), the Isle of Man Restaurateurs’ Association and other representatives from the hospitality sector.

During the meeting, the LVA issued a strong statement calling for changes to minimum wage legislation and tax policies. This plea was supported by the Chamber of Commerce, which highlighted the escalating financial pressures on businesses.

The government has since engaged in discussions with industry representatives to address these issues.

Following these talks, the Department for Enterprise, in collaboration with Treasury, has approved several initial measures designed to support the local economy, particularly the hospitality sector. This includes the launch of a new dedicated online support resource and the introduction of a new temporary financial assistance scheme to be administered over the TT period.

This will enable businesses to claim additional payments to give to staff working in excess of 37 hours and help further incentivise workers undertaking additional hours during this busy period.

Additional measures supported by the Economic Strategy Board to support customer-facing businesses in the short-term include expansion of the existing seasonal worker incentive and employee relocation incentive to now include individuals working in retail and hospitality as eligible workers.

And additional funding is being provided to support 50% of the costs in relation to hospitality qualifications under the Liquor Licencing and Public Entertainments Act 2021, with training for all ‘responsible persons’, ‘door staff members’ and, subject to ongoing consideration of proposals, ‘authorised persons’.

The government say this is an increase on the 30% historically available through the vocational training and assistance scheme and will be provided directly with a much simplified process.

Minister for Enterprise Tim Johnston emphasised the importance of these measures.

He said: ‘From the dialogue we have had with industry in recent weeks, it has become clear that information and support for the island’s local economy needs to be more accessible.

‘It is also clear that there are a number of areas that are not fully understood consistently by all, or areas where further changes have been suggested which are simply either not possible or do not make overall economic sense.

‘To try and assist, the Department for Enterprise will be bringing forward a dedicated online resource through Business Isle of Man, in addition to providing enhanced information, practical support and guidance on further support as and when it comes forward so that everyone can benefit from what is available in the interests of fairness. 

‘The temporary financial assistance scheme seeks to relieve some of the pressure facing these businesses regarding the demand for staff in the short-term by recognising and reinforcing the opportunity to work over this period.

‘We are committed to continuing to work with industry to consider further support proposals including looking to the winter period across challenges in workforce and skills, overheads, income generation and investment into premises.

‘Our longer-term strategic approach will be led by the forthcoming local economy strategy and will include measures which look to extend the tourism season and support businesses to run events throughout the winter which will stimulate footfall.

‘We will continue to work with and monitor the health of the sector as best we can over the coming months to understand how we can best support the industry in a way which is fair, sustainable and affordable and will contribute to the island’s economic prosperity.’

Treasury Minister Dr Alex Allinson added: ‘In the spirit of our commitment to supporting the hospitality sector given current concerns, the Department for Enterprise and Treasury have engaged in collaborative talks to assess prevailing challenges and explore avenues for assistance in key areas.

‘Both departments recognise the challenges, however, are also clear that any measures considered have to be fair and in doing so, must not cause market distortion, and must be aligned to the ambitions of the island’s long-term Economic Strategy.'

The government say further details regarding the online resource and temporary financial assistance scheme will be announced in the coming days.