Tourism Optimism Fades as Iran Conflict Pushes Costs Higher - But Jersey Eyes Staycation Boost

A promising start to the year for Jersey’s tourism sector has been threatened by rising costs and growing global uncertainty following the outbreak of war involving Iran, industry leaders have warned.

Disruptions to oil and gas shipments through the Strait of Hormuz since fighting began on 28 February have fuelled cost-of-living pressures, with businesses across the island beginning to feel the impact.

The Jersey Hospitality Association said the situation had already created “significant impacts” for hotels and restaurants, while Seymour Hotels confirmed that fuel surcharges on deliveries had increased in recent days.

Despite the challenges, both organisations said the island could benefit as travellers rethink long-haul holidays and instead consider closer, more stable destinations.

Mixed outlook for tourism

Marcus Calvani, representing the Jersey Hospitality Association, said the first months of 2026 had outperformed the same period last year, offering early optimism for the sector.

However, he warned that escalating geopolitical tensions had clouded the outlook.

“There’s confidence, consumer confidence, price increases and a massive amount of uncertainty,” he said. “Things are still looking good at the moment — but probably not as good as we would have hoped.”

Reports suggest British holidaymakers are increasingly seeking alternatives to trips that involve travelling through or near the Middle East. Calvani believes Jersey is well placed to benefit from this shift.

“Is Jersey a good place for a safe, short break for people who might otherwise travel further afield? Absolutely,” he said. “We have to recognise the positives and make the most of them.”

Suppliers warn of rising costs

Matt Seymour, managing director of Seymour Hotels, said his business had already been warned to expect higher operating costs.

“We’ve received notice from suppliers and partners about upcoming price increases,” he said. “One local food and beverage supplier has told us they’re facing fuel surcharges on deliveries to the island, which will inevitably be passed on.”

Even so, Seymour agreed the global situation could present opportunities for Jersey tourism.

“The cost of long-distance flights is likely to become an issue for travellers,” he added. “How much Jersey can benefit from that remains to be seen, but it’s something we’ll be monitoring closely.”

With uncertainty ahead, tourism leaders say the island’s appeal as a nearby, secure destination could prove crucial in balancing rising costs and maintaining visitor numbers in the months ahead