The Treasury Minister has unveiled an extra £40m package of support for Manx businesses hit by the unprecedented coronavirus threat.

Alfred Cannan has already announced £7m of contingency funding for health and frontline services in tackling any Covid-19 outbreak.

But in Tynwald today he will increase that war chest by transferring a further £40m into a contingency fund.

The extra funding is aimed particularly at struggling sectors including tourism and leisure - with one travel agent reporting a 70% drop in bookings and warning some businesses could go under.

The package of support announced by Mr Cannan in Tynwald today will include a national insurance holiday for employers in certain sectors - tourist accommodation, catering and leisure, travel and tour operators and logistics companies.

There will also be a £3,000 grant for businesses in the same sectors.

Compensation of £20 per employee per day will be paid to those employers who are paying sick pay to those who are sick or self-isolating.

Mr Cannan said a scheme will be introduced in the coming days for the hotel industry to promote more substantial support.

In the wake of the changing coronavirus advice, Nick Black, chief executive of the Department of Infrastructure, admitted these were worrying times for the visitor economy.

He told a Tynwald scrutiny committee on Friday: ’Our department operates in the visitor economy by providing services. We worry that coach bookings will cancel that we will lose income ourself. We worry for the business affected already.

’The predictions are worrying. We receive a trade update every day and the figures are concerning. But we’ve got to be careful and we don’t want to talk down anything. We don’t want to discourage people - the Isle of Man is very much open for business.’

Brian Kelly, chairman of the Online Regional Travel Group, said the group, which operates in the Isle of Man, Guernsey and Jersey, has seen bookings down 70% on this time last year.

Mr Kelly said: ’In 43 years in the travel business I have never seen anything quite like this.

’Obviously this is devastating in relation to the industry. This will have an impact on anything that touches travel - restaurants, taxis, hotels, self-catering, travel agents, airlines.

’We predicted this early and made some reductions so we will able to ride out the wave.

’Hundreds of business will be affected short and long-term - if they can survive this virus. This is a very serious game-changing situation.’

Fishing is another sector hit by the coronavirus threat.

Isle of Man Seafood Products announced on its Facebook page: ’The coronavirus outbreak is having a huge effect on our export market at the moment so we will be concentrating on increasing our sales on the island.’

Isle of Man Bank and HSBC are offering support to business and domestic customers affected by coronavirus.

The Treasury Minister is also bringing forward legislation to enable people to claim incapacity benefit from day one if they can’t work when following advice relating to self-isolation.

Individuals can currently only self certify their sickness for seven days, after which a medical certificate is required.

Mr Cannan proposes that is temporarily extended to 14 days.

Income support is also available for those who need additional financial support.