CI Traders chairman Tom Scott has said that the company’s plans for a casino were too ambitious. St Pierre Park was to undergo a £27m. refurbishment, including the casino and a general revamp, when a licence was agreed in 2003.

But Mr Scott said circumstances had changed dramatically since the States awarded the hotel the licence.

‘People in my organisation tendered for it with my blessing, but put together too ambitious a scheme,’ he said.

‘As things have gone on, the tourist trade has dropped, things have happened with airlines and there aren’t the people.’

But he insisted that the company had had every intention of making the project work when it won the job, but circumstances dictated a rethink.

‘We decided to cut down the amount of spending on the hotel and we said we’d spend £17m., but the States, who had thought twice about it since then, said they wanted the full contract or nothing, so it was nothing.’

He said that the hotel would be refurbished anyway.

‘We will be talking to the politicians about doing it sensibly. We should have an open talk with them and, if we involve them and VisitGuernsey, they may be more sympathetic.’