Madam,
Economic Development published its Committee Work Plan in July, following consultation with industry bodies.
Our Work Plan focuses on the economic levers within our mandate that can have the greatest impact across our economy. It follows the 80:20 principle: with 80% of our time and resources focused on eight priority areas, while retaining 20% to respond to emerging challenges and opportunities.
I will briefly update Members on each of those eight priorities today.
Connectivity — Sea
The Committee has given in-principle approval to Brittany Ferries' schedules for this winter and summer 2027, with final technical work being completed.
From the November 2nd, our conventional Portsmouth service is set to increase from six days a week to a daily service, combining direct sailings with a new triangular route via Cherbourg. Passenger and freight capacity will be maintained and protected contractually, and the minimum service obligations will continue to be met.
The purpose is to strengthen even further the longer-term resilience and sustainability of our lifeline route, control freight costs and bring forward investment into fleet renewal.
Eighteen months into the contract, freight costs are already around 14% below the flat rate in neighbouring jurisdictions. Better use of the Islander's spare capacity should help keep costs down, while a seventh weekly rotation means daily freight, strengthening our supply chain and helping retailers reduce food waste and improve shelf life.
Cherbourg also connects our hauliers into Brittany Ferries' wider European network, including Ireland and through its rail service to Bayonne, opening up southwest France, Spain and Portugal.
At present, close to 100% of our supply chain runs through the UK. Given pressures on food security and the wider geopolitical environment, that is not something we should take for granted. We are already in discussions with French supermarkets and the route may also provide an export channel for Guernsey seafood such as octopus and other produce.
For passengers, Cherbourg will be around three and a half hours away, arriving at 11 am, creating a direct connection to Normandy, particularly timely ahead of the Year of the Normans next year.
We have also seen 19% growth on the Manche-Iles Express service from Dielette and were the only route on their network that did so this year.
Islands Unlimited also achieved year-on-year passenger growth until an engine failure halted operations in August. The Committee’s marketing support ceased when services stopped.
I have had positive discussions with the Jersey's new Minister for Sustainable Development on inter-island connectivity on two occasions now.
And we have met with the Alderney Economic Development Committee to develop a framework of economic cooperation focusing on connectivity, tourism and digital opportunities.
Connectivity — Air
Air passenger movements are up 3% year to date, bringing us to their highest levels since Covid.
The London market, which represents nearly half of all passenger movements, is up 10% year to date.
More importantly, visitor numbers by air are also up and again at record levels since Covid. Visitor numbers grew 12% over the same period last year and first-time visitors were up 30%.
As part of our work on the Air Policy, we are working closely with the STSB, Aurigny and Ports to establish shared datasets and an independent assessment of air connectivity performance. I welcome their contributions to date.
Today, we will publish a new analysis by the Data & Analysis team examining visitor numbers by air route for the first time.
British Airways is helping contribute to over 60% of the departing visitor growth year to date. The value of the visitor spend travelling on BA between April and August is estimated to be £7m.
The Committee continues to support Aurigny’s Paris route through a subsidy, which ends in March 2027. Aurigny plans to continue operating the route in the summer season. The route has grown healthily, recording over 24,000 passenger movements since launch, although it remains predominantly used by islanders, with visitors accounting for an average for 24% of departing passengers.
We plan to start consultation on the Air Policy this quarter and bring it to the Assembly for debate in the first half of next year.
Tourism
ON Tourism more broadly, quarter two was the strongest since the pandemic, with just over 81,000 visitors arriving by air and sea with hotel occupancy reaching 84% in June.
VisitGuernsey won the prestigious Destination Brand of the Year at the 2026 Travel Marketing Awards and placed the second best island in the UK in the Condé Nast Traveller Readers' Choice Awards.
Visitors’ positive perceptions of Guernsey reflect the hard work of our air and sea operators, tourism industry, partners and wider community. This is reflected in our Net Promoter Score reaching a record 77 points, up nine points in a year.
But we cannot be complacent. Travel figures have been uneven with continued cost-of-living pressures and travel disruptions globally that have softened demand.
Cruise remains more volatile and susceptible to weather disruptions. However, by August cruise visitor numbers were 15% higher year to date, with a healthy pipeline for next year.
Attracting larger cruise vessels and returning to pre-Covid levels will require significant infrastructure investment, as tender ports become less attractive. The Committee remains confident in Guernsey’s cruise potential, given our location and visitor offering. We have contributed to P&R’s Future Harbours scoping exercise and are keen to see it progress at pace.
The Tourism Management Board has now transitioned into the Tourism Advisory Board, ably chaired by Charlie Walker and Clare Crawson, with the Guernsey Hospitality Association joining its membership. Work continues on a Tourism Product Strategy and the potential for a visitor levy, led by Deputy Van Katwyk.
Trade
Improved connectivity with France is central to our trade priority. The proposed Cherbourg route should be seen in that context: strengthening supply-chain resilience and opening opportunities around fresh produce and construction materials in particular.
Last week, I visited Normandy, meeting with Herve Morin, President of the Normandy Region, and Jean Morin, President of the La Manche department as well as the Port of Cherbourg and French producers and supermarkets.
More than 10 trade missions have taken place so far, facilitating exchange meetings between French and Guernsey businesses.
We have also expanded our Commonwealth engagement. In March, we hosted Lord Marland, Chairman of the Commonwealth Enterprise and Investment Council, and Deputies represented Guernsey at the Commonwealth Trade and Investment Summit in London.
Alongside P&R, External Relations and the UK Government, work continues to extend Guernsey's participation in Free Trade Agreements, including the CPTPP and Gulf Co-operation Council, and Deputy Humphreys has been very busy representing Guernsey on many occasions.
Finance
Moving onto finance, Guernsey's prosperity and the sustainability of our public services remain closely connected to the strength of financial services and the professional, digital and creative sectors around it.
The Finance Sector Growth Strategy to 2035 was published in the first quarter, providing our first unified roadmap for financial services growth.
Designing a strategy is the easier part. Delivery is the harder test.
The Finance Sector Growth Forum, chaired by Deputy Humphreys, now brings together the Committee, GFSC, Guernsey Finance and GIBA to implement its recommendations.
In the last few months, we have supported two initiatives.
The Fund Foundry supports first-time and emerging fund managers to establish Guernsey-domiciled funds. More than 100 applications were requested, with 20 finalists invited to Guernsey and six ultimately selected for the first cohort.
Alongside this, a pilot Concierge service has been launched, providing tailored support to fund managers, founders, innovators and businesses looking to establish or expand in Guernsey, making it easier to navigate regulatory and business processes.
The Committee has very close collaboration with the Guernsey Financial Services Commission on the development of a digital assets strategy and Guernsey Finance in how they support the delivery of the Finance Sector Growth workstreams.
A number of important financial services policy letters will be coming to the Assembly in quick succession.
Regulation
On regulation, the review of competition and regulation law and the GCRA is nearing completion and will shortly enter its final consultation, with proposals intended for the States next year.
Working with Environment & Infrastructure, we are also progressing the market and regulatory principles for the regulation of solar and renewable energy under the Electricity Strategy, with substantive work scheduled for the first half of next year.
Digital, AI and Innovation
The Committee has agreed to transition the Digital Greenhouse’s activities from a government-run model to the private or voluntary sector, working closely with the Innovate Guernsey Board. This reflects our willingness to take difficult decisions and rethink how taxpayer funding can best support our strategic priorities. I am grateful for Deputy Laine’s leadership in driving this work forward.
The market response has been very encouraging. More than 10 businesses and organisations have expressed an interest in taking on the Digital Greenhouse or elements of its services.
The tender process was launched last week with a timeline to appoint a new provider in Q1.
We have been championing AI adoption across the States, supporting a trial of a new training provider and piloting AI agents to assist with Committee work and Committee agendas.
The six-week AI Sprint, jointly organised by Guernsey Chamber, the Innovate Guernsey Board and industry, has been a real highlight. It is one of the largest rapid upskilling initiatives, and I encourage Deputies and the wider public to take part.
Other priorities include digital identity for individuals and businesses, open banking and developing a policy position on local data-centre infrastructure to support data sovereignty and AI-enabled services.
Economic Infrastructure
Following extensive negotiations, we have concluded a new 2-REG contract with SGI Guernsey. The agreement strengthens cost recovery protections for the States and provides greater incentives for SGI to grow the Aircraft Registry and the associated secondary financial services that go hand in hand with it.
Economic Strategy
Our eighth priority is the development of a new long-term Economic Strategy.
This will provide a longer-term plan for growth, investment, productivity, workforce participation and resilience, helping Guernsey respond both to our domestic challenges and to an increasingly competitive and challenging global environment.
Work will commence in full next year and will take account of the work being undertaken by the Institute of Directors ahead of its November Convention on economic growth.
Other work
Our 80:20 approach also allows us to respond to issues and opportunities beyond these core priorities.
This has included working with the Institute for Screen Arts Guernsey, bringing together stakeholders and the Guernsey Retail Group to explore the future of St Peter Port, engaging with the fishing industry and beginning discussions around food security and increasing local food production.
Conclusion
Madam, this is a substantial programme, and we have set an ambitious pace.
We are recruiting for the first permanent Chief Officer for the Committee, with applications closing on Monday 26 October.
None of this can be achieved by one person or organisation. Progress depends on collaboration across the States, constructive challenge and effective teamwork, and I am pleased to welcome Deputy Leadbeater as our newest member.
From stronger connectivity and growing visitor numbers to delivery of the Finance Sector Growth Strategy, we are seeing tangible progress.
With the tax debate behind us, now is the time to look forward. Our economy faces real challenges, but there are also sound reasons for optimism. We should recognise the progress being made and concentrate on building upon it.