Andrew Gibbs, Chairman of the Isle of Man Licensed Victuallers’ Association, has expressed support for the Local Economy Forum’s concerns.
He warned that current economic and policy pressures are creating major challenges for the island’s hospitality sector.
Mr Gibbs the Isle of Man LVA shares many of the concerns articulated by the Local Economy Forum.
He added: “Our members are on the frontline of the local economy and are feeling, day by day, the cumulative impact of rising costs, falling consumer confidence, and a prolonged lack of meaningful engagement with industry.”
Industry Struggles
Hospitality businesses, which employ thousands of people across the island and play a key role in community life and tourism, are dealing with a combination of rising labour costs, higher energy prices, increasing regulatory requirements and reduced disposable income among customers.
Mr Gibbs said recent wage policy discussions had raised concerns about the long-term sustainability of the sector’s workforce.
“While fair pay is essential, sudden changes to wage structures can create challenges for employers, particularly smaller businesses, in balancing costs with training and workforce development,” Mr Gibbs said.
“Our sector has traditionally been a vital entry point into employment, providing skills, confidence and long-term career pathways for people starting out in the workforce.”
Lack of Understanding
He warned that policy decisions made without a full understanding of how hospitality businesses operate could have unintended consequences.
“Decisions that do not fully consider the operational realities of hospitality risk discouraging hiring and limiting opportunities for those seeking their first work experience,” he said.
“Ensuring that wage and employment policies are grounded in economic reality is essential to maintaining a thriving sector.”
While reaffirming its support for fair pay and good employment practices, the LVA stressed that wage policy must be shaped through meaningful consultation with employers.
“Without proper consultation and impact assessment, well-intentioned decisions risk accelerating business closures, reducing employment opportunities and hollowing out our town centres,” Mr Gibbs added. “A thriving hospitality sector is not a luxury; it is a cornerstone of a healthy local economy.”
The LVA echoed calls from the Local Economy Forum for constructive engagement between government and the private sector, and said it was ready to work with government, LEF and other stakeholders to develop practical, evidence-based solutions to protect jobs, support workforce development and enable sustainable economic recovery on the island.
