A 3% levy on goods and services has been approved as a measure to make up a government cash shortfall.

But Robert Weston said cutting down on official administration and also on civil servants would make huge savings.

The tax is part of plans to recover up to �100m a year which will be lost once the tax on company profits is reduced.

Mr Weston added: "The tourism industry, which is already struggling, can't afford an extra tax."

The tax will be phased in over the next few years.