Budget Hotels bad for business

Budget hotels in Jersey are disappearing from the island - with most being converted into housing.

In the last year nearly a dozen hotels have submitted plans that would see a stop to their tourism trade.

At the moment there are more than a handful of applications are pending at Planning, seeking permission to demolish and build apartments or houses in their place.

The latest application submitted was for the Metropole Hotel in Havre des Pas. And it is typical of the current trend - two and three stars appear to have lost their sparkle.

Property on the other hand, is looking ever more alluring and with lending arrangements returning to the market, it is back in business.

Richard Hollick, from the Estate Agents Association, said: "Well, property sales for this year have started off very strongly - there seems to be more access to finance and generally demand has been a lot greater. We're certainly experiencing an increase in offers and sales completing."

But this could cause concerns for Jersey as a holiday destination.

Previously a destination for affordable travel, Jersey is becoming ever more high-end, with the four and five star market quickly outpricing the less well-off.

But from a tourism perspective, are we shooting ourselves in the foot by focussing purely on the big bucks?

David de Carteret, from Jersey Tourism, said: "I think the four and five star end of the market is important but equally important is the two and three star market. And we've got to bear in mind the the middle of the market is still our core business. There are more beds in three star than there are in any other category."

So Jersey Tourism disagree that the top end of the market is taking over, and insist the two and three star travellers are still alive and kicking with plenty of beds to accommodate them.

But with one hotel buckling after the other - the message from hoteliers seems to be that the bottom rung is clearly bottoming out in Jersey. (from CTV)