The Isle of Man Chamber of Commerce has voiced concerns that the government’s support measures for the hospitality sector during the Isle of Man TT will primarily benefits ‘larger’ businesses.

They include the creation of a new temporary financial assistance initiative - called the TT Hospitality and Retail Staffing Incentive Scheme - during the races and the launch of a dedicated online support resource for hospitality workers.

The urgent measures were unveiled amid mounting concerns from the island’s hospitality bosses over the staffing and financial pressures faced by businesses.

Now the Chamber of Commerce says that while it ‘broadly’ supports the measures, it remains to be seen how effective they will be.

A spokesperson for the group said: ‘Hospitality is a sector that plays a vital role in the local economy and to the quality of life for residents and the visitor economy.

‘It’s in this context we are pleased that the Department [for Enterprise] and Treasury has acknowledged businesses in this sector are facing very challenging times.

‘Initial feedback from members shows that the application process is simple and straightforward.

‘One issue of concern which has been raised already by our members is that there would be a stronger incentive for businesses and employees if the support was tax and NI free.

‘Currently, it has been estimated that approximately one third of the money paid in support is recouped in taxes, which makes it more of a disincentive. 

‘We also have some concerns about whether the support will provide sufficient help to small, independently owned businesses and not just larger operators.

‘Looking at the overall picture, we feel that the action taken by the Department for Enterprise (DfE) and supported by the Economic Strategy group is a positive first step and welcome news for the hospitality sector – but there is room for improvement, and making sure this support continues to be delivered ASAP, and with minimal glitches or delays due to red tape and admin, must now be the priority.

‘Time will tell regarding how effective the support will be in terms of helping hospitality businesses to meet the challenges they are facing.

The TT Hospitality and Retail Staffing Incentive Scheme is now available exclusively to businesses in the hospitality and retail sectors.

As part of the initiative, businesses can apply for additional funding, which must be passed on directly to their staff.

Eligible traders will receive financial assistance for every 10 additional hours worked by an employee each week, with a maximum of £100 per week per individual.