Island's hospitality industry 'in crisis'

Businesses call on government for support

There's a warning that the hospitality industry is in crisis with caterers seeing 'extremely small' profit margins.

It comes as an Island-based café spoke of increasing pressure last week and called on the government to alleviate some of the burden with an overhaul to VAT.

The call for a change in the rate was echoed by the Isle of Man Chamber of Commerce.

Government has ruled out any changes, but insists support is available, despite being accused of accepting a 'churn industry' mentality.

After almost a decade in operation, The Tea Junction on Castle Street, Douglas, announced it will close its doors in May 2025.

Joint-owner Mark Davison says people simply don't have the disposable income anymore:

These people in Douglas were asked how often they support local eateries:

Last week, the Department for Enterprise said: “Whilst [the department] is not able to comment on individual businesses, we recognise many businesses are facing increasing financial pressures, which compounded with a typically quieter season for hospitality over the winter, has meant that this is a challenging period for many hospitality establishments.

“Through the Business Agency the Department for Enterprise is progressing a number of initiatives and projects which aim to support the hospitality sector and address key barriers for growth, including working with the Visit Agency to stimulate demand for the hospitality and the wider local economy and bringing forward the Local Economy Strategy.

“Business Isle of Man continues to be available to support businesses operating in the hospitality sector, and would encourage any business experiencing operational difficulties to contact them (contact-business@gov.im).

“Through our enterprise support division the department also offers a free of charge independent business advisory services for any business which is seeking support.”