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The Reds' collapse is "unbelievably bad" for the island's economy as the club was "a major factor" in attracting visitors at quieter times of year, the voice of Jersey's hospitality industry has warned.
The club announced yesterday that it had ceased trading and that liquidation “appears inevitable” after talks with current and future investors fell apart.
This was despite receiving £370,000 in "short-term" grants from the Government earlier this year.
Reacting to the announcement yesterday, Jersey Hospitality Association co-CEO Marcus Calvani said he was "extremely shocked and saddened" that such a "well-loved part of Jersey life" had ceased trading.
He commented: "As an industry body, we have had close links with the Jersey Reds and the Jersey Rugby Club for many years and the support they have given the JHA and our members has been first class. I am so sorry for all those whose jobs and livelihoods are affected.
"This is also unbelievably bad news for Jersey."
He continued: "Jersey Reds achieved the unachievable last season, put our Island firmly on the map and raised the profile of our Island. The Reds been a major factor in attracting visitors to the island, especially during the shoulder months.
"They have attracted thousands of visiting fans as ‘sports tourists’ who have come to support their teams and enjoy everything Jersey has to offer while staying in our hotels, eating at our restaurants and cafes and drinking in our pubs and bars."
Pictured: Jersey Hospitality Association co-Chief Executive Marcus Calvani said the Reds collapse was "unbelievably bad news" for the island.
Mr Calvani added: "For years they’ve been pulling in crowds of locals at St Peter who have gone to enjoy the sport and hospitality during the months when the days are shorter, colder and wetter.
"Hospitality and sport go hand in hand and are exactly the growth areas that this island needs to get behind and support.”
Chair of the Jersey Reds, Mark Morgan, previously told Connect Magazine that research suggested its value to be worth around £5m for the local economy.
This, he explained, included the taxpaying staff they employ, GST on events and alcohol sold, as well as the value generated through players and visitors travelling to and from the island and enjoying local hospitality.
Read: Mark Morgan was interviewed for the Unplugged feature in the June edition of Connect Magazine.
"And that's before you start thinking about the intangibles, such as the coverage we've had," he added. "Because of the success we've had this last season, the coverage we've had in the national press over the last month has been amazing. It's coverage money can't buy – Visit Jersey could not have a budget big enough to get that kind of exposure.
"There is a huge amount of value brought to the island through ‘sports tourism’. Call it what you will, it's probably under undervalued, I would think."
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