Economic Development targets enhancing digital adoption in bid for up to £150m in additional growth
- Guernsey's Economic Development has published a 2026-2029 workplan which targets up to £150 million per year in additional economic growth through enhanced digital adoption
- The strategy addresses what officials describe as "stagnating economic growth" and "declining competitiveness" amid challenges including tax reform, infrastructure investment and public finance pressures
- Eight strategic priorities include connectivity, tourism, finance sector growth, trade relationships, digital and AI innovation, regulation, economic infrastructure and a new Economic Development Strategy
- The island recorded a 69% increase in visitors from France in 2025, 55 successful relocations through Locate Guernsey, and connected 70% of premises to fibre broadband
- A Finance Sector Growth Strategy developed with Oliver Wyman will provide "Guernsey's first unified roadmap for financial services growth to 2035"
Economic Development has published a workplan targeting up to £150 million per year in additional economic growth through enhanced digital adoption, as the island confronts what officials describe as "stagnating economic growth" and "declining competitiveness."
The 2026-2029 strategy comes amid challenges including tax reform, infrastructure investment, healthcare sustainability and public finance pressures. The Committee warns that "Guernsey must act decisively to grow its economy and remain attractive to investment" in an increasingly competitive global landscape.
Despite the challenges, the island recorded achievements in 2025, including a 69% increase in visitors from France compared to 2024, a 7% rise in total visitors from Jersey, and 55 successful relocations through Locate Guernsey. Approximately 70% of premises — some 21,000 — are now connected to fibre broadband, and British Airways announced a new daily service to Heathrow starting in April 2026.
The Committee has structured its workplan around the "80:20 principle," dedicating 80% of resources to eight core priorities and 20% to emerging issues.
Connectivity forms the first pillar of the strategy. The Committee aims to review the Air Policy Framework and Air Transport Licensing in 2026, develop new air routes and enhance sea links. Following the collapse of Blue Islands, the Guernsey-Jersey route has been designated as essential.
Key initiatives include optimising ferry services, freight scheduling and inter-island links with Jersey, strengthening connections to Alderney, Sark and Herm, exploring future fleet renewal options aligned with environmental targets, and leveraging the new British Airways Heathrow service for business and visitor access.
The plan states that "weak or unreliable connectivity constrains growth by raising costs for businesses and undermining confidence." Strengthened connectivity will "unlock tourism markets and trade opportunities, support freight resilience, stimulate investment and maintain essential routes vital to the community."
Tourism represents the second priority, with plans to increase visitor numbers and satisfaction through a Visitor Economy strategy and scope opportunities for a visitor levy. The Committee will build on 2025's momentum from the Brittany Ferries partnership and strengthened French and UK links.
Plans include expanding tourism markets through targeted promotion, extending shoulder seasons, developing a Tourism Product Strategy and showcasing offerings across the entire Bailiwick. Tourism is described as "a key driver of economic recovery and growth" that "stimulates local spending in retail and hospitality and is essential in supporting sustainable air and sea connectivity."
The sector also ensures "vibrancy and sustainability of a busy social scene throughout the year" benefiting residents alongside visitors.
Finance sector growth forms the third priority. A Finance Sector Growth Strategy was delivered the first quarter of 2026 together with a Finance Growth Forum. This was the result of a partnership between the States, the Guernsey International Business Association, Guernsey Finance and the Guernsey Financial Services Commission, which commissioned global consultancy Oliver Wyman to develop Guernsey's "first unified roadmap for financial services growth" to 2035.
The strategy identifies initiatives to boost productivity in existing financial services sectors, move up the value chain within current sectors, expand into adjacent and fast-growing opportunity areas, mobilise private sector investment to support innovation, redefine Guernsey's value proposition in the global International Finance Centre landscape, and develop plans to tackle structural constraints to growth.
The strategy will help enhance Guernsey's appeal as a hub for global growth, "helping further develop the jurisdiction as a platform for investment, the stewardship of wealth, insurance and digitally enabled finance."
Trade relationships represent the fourth priority, with plans to expand International Trade Agreements including CPTPP and GCC, and enhance links with France and the Commonwealth. The Committee will secure "rules-based access to new and existing markets" through international trade agreements including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Gulf Co-operation Council.
Specific focus areas include building trade links with France, including commercial partnerships in building materials and food produce, developing Commonwealth trade links through partnership with the Commonwealth Enterprise and Investment Council, and working with businesses to identify and develop French trade opportunities.
Trade agreements provide "Guernsey businesses with secure, rules-based access to new and existing markets" while helping the island "remain competitive and ensure our resilience."
Digital, AI and innovation form the fifth priority. The Committee will launch an updated Digital and AI Framework in 2026 and deliver an Innovation Plan with the Innovate Guernsey Board in 2027. The Committee cites PwC Digital Economy study findings showing potential for up to £150 million per year in increased Gross Value Added through enhanced digital adoption.
Priority initiatives include investigating jurisdictional digital ID for business, contributing to the personal Digital ID project, developing an open banking offering aligned with the Deloitte Banking Review, investigating data trusts to secure economic benefit, developing policy on local data centre infrastructure for data sovereignty and AI services, and working with the Innovation Board to deliver an Innovation Plan via Digital Greenhouse.
The fibre roll-out to all premises is expected to complete in 2026, with 5G services deployment expected to begin the same year. Digital transformation can "boost productivity (by cutting bureaucracy and transaction costs), support new sectors (IT, fintech, digital media), enable exports of digital services globally, and improve public service efficiency."
Regulation represents the sixth priority, with the Committee targeting completion of a Competition and Regulation review in 2026 and plans to unlock the renewable energy market through Electricity Strategy regulation in the first half of 2027. The Committee initiated a comprehensive review of competition and regulation law and the Guernsey Competition & Regulatory Authority functions in 2024, to be completed during 2026.
Electricity market regulation objectives include preventing potential market dominance, supporting fair pricing and consumer protection, aligning the electricity market with long-term energy policy, enabling renewable integration, and delivering structural changes needed for net-zero targets.
The Committee will lead market-related workstreams under the Electricity Strategy, including renewables pricing, licensing, merit-order reform and connections policy. "Effective regulation builds business confidence, ensures market fairness, reduces barriers to entry and enables critical infrastructure markets to function efficiently."
Economic infrastructure forms the seventh priority, with plans to maximise economic value of the Guernsey Registry in 2027-2028 and the Aircraft Registry in 2027. Following a significant IT upgrade enabling new functionality, the Committee plans to implement a new governance and operating model for greater independence from government, enable API functionality for payments and verifications, position the Registry as a competitive, customer-focused service, streamline requirements for local trading businesses where appropriate, and maintain strong compliance and anti-financial crime functions.
The Aircraft Registry, created in 2013 to support owners and lessors of small and corporate aircraft, will expand international outreach to attract corporate aviation clients, increase the number of aircraft registrations, enhance local capability and service offerings, and increase associated on-Island economic activity.
A modern Registry is "essential to maintain and enhance Guernsey's reputation as a trusted and competitive international finance centre" while "detecting and preventing financial crime through stringent controls."
The eighth priority involves developing a new Economic Development Strategy in 2027. The last Economic Development Strategy was considered by the States in 2018. The new strategy will define "where Guernsey wants to be," the actions needed, and provide a "clear, prioritised and sequenced plan for delivery across Committees and industry stakeholders."
Expected objectives include strengthening existing sectors including the real economy and construction, fostering new industries and unlocking new growth areas, improving the Island's competitiveness, increasing investment particularly in infrastructure, supporting businesses to invest, start-up and grow, ensuring joined-up government working, creating equitable benefits for Islanders, and future skills planning for workforce participation.
The strategy will include "clear success measures, economic indicators and priority actions to guide investment decisions, policy focus areas and long-term workforce development."
"Guernsey cannot rely on past success to secure future prosperity. Guernsey faces challenges such as slower growth, rising costs, demographic pressures and increasing international competition. An updated long-term strategy is required to remain competitive, tackle these economic pressures and unlock future opportunities."
The Committee for Economic Development's statutory mandate is to "secure prosperity through the generation of wealth and the creation of the greatest number and widest range of employment opportunities possible by promoting and developing business, commerce and industry in all sectors."
This encompasses promotion and development of all business sectors, the Island's reputation as a commerce and industry centre, air and sea links provision and promotion, inward investment at corporate and individual level, labour skills necessary for economic prosperity, competition, innovation, diversification and regulation, broadcasting and media, and safeguarding living marine resources and sustainable exploitation.
The workplan identifies a challenging global and local context. Global challenges include rapid integration of AI and technology, growing importance of security and portability, a complex macroeconomic landscape, geopolitical uncertainty, traditional financial institutions facing disruption from fintech and non-bank entities, and a wave of consolidation and digital transformation.
Local challenges include stagnating economic growth, declining competitiveness in some areas, tax reform requirements, infrastructure investment needs, healthcare sustainability, public finance sustainability, the need to attract investment, and the need to diversify the economy.
Existing strengths to build upon include strengthened connectivity, security and resilience in physical and digital infrastructure, a skilled workforce, reputation as a trusted offshore jurisdiction, strong niche industries in data assets and fintech, high standard of living, and natural resources supporting a successful tourism sector.
Locate Guernsey recorded "increasing serious enquiries" in 2025, resulting in 55 relocations. The plan notes these were "driven by the Island's tax regime, safety and stability." The Committee has continued support for changes to share scheme taxation, which "aims to attract talent, support startups and strengthen Guernsey's global competitiveness."
Beyond the eight core priorities, the Committee maintains statutory duties across several areas including Office of Civil Aviation oversight, Office of the Public Trustee, Banking Deposit Compensation Committee, Insolvency Panel, and Office of the Financial Services Ombudsman.
Industry engagement remains a core operating principle, with regular dialogue maintained with the Chamber of Commerce, Institute of Directors, Confederation of Guernsey Industry, Guernsey Hospitality Association, Guernsey Retail Group, Institute of Screen Arts Guernsey, Guernsey Building Trades Employers Association, Digital Assets Forum, Association of Guernsey Charities, and Guernsey International Business Association and constituent bodies.
Emerging themes being monitored for potential prioritisation include sea fisheries and blue economy, creative and film sectors, support for SMEs and real economy, St Peter Port enhancement, and construction sector challenges.
The Committee commits to transparency through annual statements to the States in March and September, annual Committee Work Plan updates published on gov.gg, mid-term and end-of-term Government Work Plan reporting, and quarterly internal tracking of progress.
The new Economic Development Strategy will provide a "comprehensive framework to help measure the impacts of current and future priorities," aiming to "enhance the economic data available and provide a clear set of metrics to monitor the health of the economy."
The Committee acknowledges it "does not control many of the levers affecting the Island's economy" and commits to "championing the economic development agenda across the States, working closely with other stakeholders on cross-cutting issues."
The workplan notes it will support Government Work Plan activities including infrastructure improvements, increased workforce participation, East coast development progress, population and immigration regime review, and maintaining Guernsey's attractiveness as a place to live and invest.
Economic Development President Deputy Sasha Kazantseva-Miller, said: "Guernsey has strong economic foundations, but we are operating in an increasingly challenging demographic and global economic environment. Years of underinvestment in productive infrastructure have also constrained our ability to grow, and we cannot assume that past success alone will secure future prosperity."
She added: "Our Work Plan sets out the Committee's priorities within its mandate, focusing on the areas where we believe we can make the greatest difference across the economy. It is largely industry-agnostic, with priorities including improving connectivity, strengthening tourism and trade, supporting the continued growth of our finance sector, accelerating digital adoption and innovation, ensuring proportionate regulation and developing a long-term Economic Strategy for the Bailiwick."
Deputy Kazantseva-Miller said many of the drivers of economic success sit beyond the Committee's direct responsibilities, making a joined-up approach across government, industry and the community more important than ever.
"That is why developing a long-term Economic Strategy is one of our key priorities, providing a shared direction for sustainable growth across the Bailiwick," she said.
"We also wanted to take the time to engage with industry before publishing the Work Plan, and the feedback we received has strengthened the final document. A consistent theme was the importance of measurable outcomes, and this will be a key theme as we progress the delivery of the workstreams under the eight priority areas."
Q&A
Q: How much additional economic growth is Guernsey targeting per year?
A: Guernsey is targeting up to £150 million per year in additional economic growth through enhanced digital adoption, according to PwC Digital Economy study findings cited in the workplan.
Q: What were Guernsey's key achievements in 2025?
A: In 2025, Guernsey recorded a 69% increase in visitors from France, a 7% increase in visitors from Jersey, 55 successful relocations through Locate Guernsey, and connected approximately 21,000 premises (70%) to fibre broadband. British Airways also announced a new daily service to Heathrow starting April 2026.
Q: What are the eight strategic priorities in the workplan?
A: The eight priorities are: connectivity (air and sea links), tourism development, finance sector growth, trade relationships, digital/AI and innovation, regulation, economic infrastructure (Registry and Aircraft Registry), and developing a new Economic Development Strategy by 2027.
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