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PP No 2020/0212 PP 2020/0212 ECONOMIC POLICY REVIEW COMMITTEE FIRST REPORT FOR THE SESSION 2020-21 VISITOR ACCOMMODATION ECONOMIC POLICY REVIEW COMMITTEE FIRST REPORT FOR THE SESSION 2020-21 VISITOR ACCOMMODATION There shall be three Policy Review Committees which shall be Standing Committees of the Court. Subject to Standing Order 5.6(3) they may scrutinise the established (but not emergent) policies, as deemed necessary by each Committee, of the Departments and Offices indicated in this paragraph together with the associated Statutory Boards and other bodies: Economic Committee: Treasury; the Department for Enterprise; and the Cabinet Office (including constitutional matters). Each Policy Review Committee shall in addition be entitled to take evidence from witnesses, whether representing a Department, Office, Statutory Board or other organisation within its remit or not, in cases where the subject matter cuts across different areas of responsibility of different Departments, Offices, Statutory Boards or other organisations. The Policy Review Committees may also hold joint sittings for deliberative purposes or to take evidence. The Chairmen of the Policy Review Committees shall agree on the scope of a Policy Review Committee’s inquiry where the subject cuts across the respective boundaries of the Policy Review Committees’ remits. Each Policy Review Committee shall have – (a) a Chairman elected by Tynwald, (b) two other Members. Members of Tynwald shall not be eligible for membership of the Committee, if, for the time being, they hold any of the following offices: President of Tynwald, member of the Council of Ministers, member of the Treasury Department referred to in section 1(2)(b) of the Government Departments Act 1987. The Policy Review Committees shall be authorised to require the attendance of Ministers for the purpose of assisting the Committee (or Committees, if sitting jointly). Should the need arise in relation to a particular matter, such as a conflict of interest, Tynwald may elect an alternate member for the purpose and duration of a Policy Review Committee’s consideration of that matter. A conflicted member so replaced shall continue to serve as a member of the Committee for all other purposes. Resolved on 20th May 2014 – That the remit of the Economic Policy Review Committee should include the work of the Financial Supervision Commission, Insurance and Pensions Authority and Gambling Supervision Commission, this remit to include the requirement for the Chief Executive to give evidence in public. The powers, privileges and immunities relating to the work of a committee of Tynwald include those conferred by the Tynwald Proceedings Act 1876, the Privileges of Tynwald (Publications) Act 1973, the Tynwald Proceedings Act 1984, and by the Standing Orders of Tynwald Court. Committee Membership Mr C R Robertshaw MHK (Douglas East) (Chairman) Mr J R Moorhouse MHK (Arbory, Castletown and Malew) Mrs K Sharpe MLC Copies of this report may be obtained from the Tynwald Library, Legislative Buildings, Finch Road, Douglas, IM1 3PW (Tel: 01624 685520) or may be consulted at www.tynwald.org.im All correspondence with regard to this report should be addressed to the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas, Isle of Man, IM1 3PW. Table of Contents I. THE WORK OF THE COMMITTEE..................................................................... 1 II. HOTEL SOLUTIONS REPORT 2016: HOTEL FUTURES ........................................ 1 III. HOTEL SOLUTIONS REPORT 2017: NON-SERVICED ACCOMMODATION ........... 2 IV. IMPLEMENTATION OF HOTEL SOLUTIONS’ RECOMMENDATIONS................... 3 V. FINANCIAL SUPPORT FOR THE DEVELOPMENT OF HOTELS ............................. 3 VI. THE PLANNING SYSTEM................................................................................. 5 VII. SECTOR LEADERSHIP...................................................................................... 6 VIII. ACHIEVING FULL POTENTIAL.......................................................................... 8 ANNEX 1: LETTER FROM HON LAURENCE SKELLY MHK, MINISTER FOR ENTERPRISE . ....................................................................................................................11 ANNEX 2: PAPER FROM ANDREW KEELING, HOTEL SOLUTIONS: PUBLIC SECTOR FUNDING OF HOTEL DEVELOPMENT SCHEMES IN THE UK.....................................17 ANNEX 3: CIS RESEARCH PAPER: STAYCATIONING IN THE UK................................35 ORAL EVIDENCE ...................................................................................................47 21ST SEPTEMBER 2018 EVIDENCE OF HON LAURENCE SKELLY MHK, MINISTER, AND MR MARK LEWIN, CHIEF EXECUTIVE, DEPARTMENT FOR ENTERPRISE 49 10TH SEPTEMBER 2020 EVIDENCE OF MR ANDREW KEELING, HOTEL SOLUTIONS AND HON LAURENCE SKELLY MHK, MINISTER, AND MR MARK LEWIN, CHIEF EXECUTIVE, DEPARTMENT FOR ENTERPRISE; MR RANALD CALDWELL, CHAIR, AND MRS ANGELA BYRNE, HEAD OF AGENCY, VISIT ISLE OF MAN 73 To: The Hon Stephen C Rodan OBE MLC, President of Tynwald, and the Hon Council and Keys in Tynwald assembled ECONOMIC POLICY REVIEW COMMITTEE FIRST REPORT FOR THE SESSION 2020-21 VISITOR ACCOMMODATION I. THE WORK OF THE COMMITTEE 1. In July 2020 we decided to undertake an inquiry into the future of the visitor accommodation sector. Our inquiry seeks to understand the state of the sector, with a view to attracting visitors back to the Island once travel restrictions have been lifted. 2. In September 2020 we held a public oral evidence hearing during which we heard in the morning from Mr Andrew Keeling of Hotel Solutions Limited and in the afternoon from the Minister for Enterprise, the Chair of the Visit Agency, and officers. The transcription is published as part of this Report. 3. In this report we have also drawn on public oral evidence which we have heard in previous years from the Minister and Chief Executive of the Department for Enterprise. II. HOTEL SOLUTIONS REPORT 2016: HOTEL FUTURES 4. The ‘Isle of Man Hotel Futures’ study was completed in January 2016.1 Its cost to the Department was £21,000.2 This report identified that the Island needed a more 1 https://www.tynwald.org.im/business/committee/EPRC/Public%20Evidence/DfE%20Report.pdf 2 Annex 1 1 contemporary standard of hotel offering, suggesting that the priority of the sector should be renewing the Island’s hotel sector rather than significantly increasing the number of hotels. The report also suggested that the Island needed to better meet the needs of a range of visitor types, and said that in order to do so an integrated approach across the public and private sectors was required. 5. The report drew attention to the planning system, making several recommendations about how planning policy could be improved to support the sector. 6. The main recommendation made from a Government support perspective was that a hotel investment fund should be established to accelerate investment in existing hotels and the development of new ones. The report said a marketing programme should also be launched using specialist commercial property agents in a final attempt to find buyers for hotels on Douglas Promenade before their prospects of refurbishment become significantly diminished. III. HOTEL SOLUTIONS REPORT 2017: NON-SERVICED ACCOMMODATION 7. Hotel Solutions’ second report ‘Isle of Man Non-Serviced Accommodation Futures’ was completed in March 2017.3 Its cost to the Department was £20,000.4 Hotel Solutions concluded in this report that the Island did not have a sufficiently developed non-serviced accommodation sector to attract and compete for business in the market. 8. Hotel Solutions found that the Isle of Man had very few all-weather facilities, very little family-friendly accommodation and very little activity-focused accommodation. The Island did however have a good stock of high-quality self-catering accommodation. Three barriers to investment in non-serviced accommodation were identified: the cost of getting to the Island, the short season and planning policy restrictions. 9. The report highlighted the potential for more accommodation with enhanced facilities and scope for a few sizeable holiday resorts, potential for at least one forest centre and additional glamping sites. It was also suggested that some campsites should upgrade their facilities to four or five stars to be able to compete for this business. Caravans could be attracted to the Island if restrictions on towing them were lifted. The Island was also missing out on groups such as walkers who would like to use hostel/bunkhouse accommodation. 3https://www.tynwald.org.im/business/committee/EPRC/Public%20Evidence/DfE%20Report%202.pdf 4 Annex 1 2 10. Hotel Solutions recommended the development of planning policy to facilitate an increased non-serviced accommodation offering, particularly on developments in the countryside. IV. IMPLEMENTATION OF HOTEL SOLUTIONS’ RECOMMENDATIONS 11. When asked on a scale of one to ten how many of the recommendations he thought had been actioned by the Department, Mr Keeling replied: I do not know the answer to that, because obviously as a consultant you parachute in and then you go off. So I do not know exactly … I would say it is probably three or four out of 10.5 We conclude that the Department for Enterprise has failed to act on the recommendations of the consultancy advice commissioned by its predecessor, the Department of Economic Development. V. FINANCIAL SUPPORT FOR THE DEVELOPMENT OF HOTELS 12. One of the principal recommendations made by Hotel Solutions in 2016 was the
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