The association said hospitality businesses have already absorbed significant cost increases in recent years, including higher energy bills, food and drink prices, wages, recruitment costs and rents.
It warned the GST+ package proposed could place further pressure on an industry it said played a vital role in Guernsey’s economy.
The group said rising operating costs could affect competitiveness, consumer confidence and visitor demand, with wider implications for spending across the local economy.
It added that it remains committed to working constructively with the States on sustainable solutions for Guernsey’s long-term financial future.
Follow BBC Guernsey on X, external and Facebook, external and Instagram, external. Send your story ideas to channel.islands@bbc.co.uk, external.