LODGING houses face extinction because of changes to boarding rules. Since 2001 holidaymakers and workers have had to stay in separate accommodation.

Les Embruns House owner Janet O’Connor said it had been losing business because the authorities had been turning a blind eye to worker-friendly hotels.

She said lodging houses could face ruin if the rules were officially relaxed.

St Margaret’s Lodge Hotel proprietor Carlo Stefani regretted taking trade from lodges by taking in workers, but said that it was all part of business.

The Commerce and Employment Department has defended the monitoring of the separation system. It refused to confirm or deny whether there would be any rule changes.

‘In the end, small lodges will disappear and we will be left with only the big hotels if they are allowed to take in workers and holidaymakers, whether that be because of rule changes or rule relaxation,’ said Mrs O’Connor.

In April 2001 the Tourist Board told hoteliers that holidaymakers and workers had to stay in separate accommodation.

Establishments had to choose between being a hotel and having only tourists or becoming a lodge and having only workers.

‘We were intending to have workers in the old part of the house and visitors in the new part – with two separate entrances,’ said Mrs O’Connor, who has owned the hotel since 1999.

‘But then we were told we had to choose between the two, in a week. We decided to keep on with the workers; otherwise we would have had to throw them out on the street.

‘We then became a lodge but that meant we had to get rid of the bar and the kitchen.

‘They said that they would not let hotels take on workers but that has not happened.

‘There was a lot of upset at the time for people like ourselves but now a lot of hotels have workers staying. I survive from workers.’

A spokesman for Commerce and Employment said: ‘When the current hotel-grading scheme was introduced, decisions were made in certain sections of the tourist industry on whether to invest to meet the requirements of the new quality grades or to change the use of premises.

‘As a result, there are premises that now cater for workers and businessmen rather than holidaymakers.

‘The department is responsible for issuing boarding permits and it has to take into account a number of factors before granting such a permit. These factors include the overall nature, purpose and operation of premises and the interests of people who will stay in such premises.

‘It recognises that the needs of short-term leisure visitors and long-term guests are different and may not always be best served in the same accommodation. There have been instances when difficulties have arisen; however, these instances are unusual and have been dealt with promptly within the quality- grading scheme.’

Mr Stefani said he had a lot of workers staying in his hotel.

‘It is a pity that I may take business away from the lodging houses but they do not have the same overheads. That is business: I have to make money,’ he said.

‘I made a big mistake at the start of the building boom because I got rid of many of the workers because I wanted to concentrate on tourism. But the takings went down, especially at the bar.

‘Especially in winter, but even in summer, there is no steady tourist pattern. I now take on workers for as long as they want. Most are professionals: they may work in the building industry but many work in an office. I would think of converting to a lodging house if I knew I would get a steady supply of workers all year round.’

Davina Wallace, manager St George’s Hotel, said: ‘Lodges take on people for months or years; we take on people Monday to Friday but then they go home. Most stay a maximum of 10 days – they are not long-term. If they were here for the long term, they would find it a very costly way of living.’

Mrs O’Connor said that she had been told the rules were now going to be changed and a mix of tourists and workers would be allowed.

‘It is a more sensible policy but it is no use to us. We cannot convert back because it will cost around £250,000 to put in the bar and kitchen again. It is not viable to start from scratch. We no longer have the tourist base, either.

‘The change is sensible but it will not be good for us because it will legitimise hotels having workers and more of our business could be taken.’

The department refused to be drawn on the future system.

‘With regard to the future, the department will be working on an economic strategy for the island,’ said a spokesman.

‘That strategy will encompass the tourist industry and the objective will be to produce policies that best serve both the island and the industry itself.

‘In this respect, the department recognises that there is a legitimate need to accommodate both visitors and ﾓtemporaryﾔ workers.’