More hotels are expected to take advantage of plans to ease change of use restrictions as tourism declines.
A lack of demand amid a 15% fall in visitors over the past five years means some hotels have already applied.
In the past applications have struggled to get through but under the new plans the process could be easier.
There are concerns this will leave the island short of beds but Deputy Minister Carla McNaulty Bauer says the issue is quality not quantity.
Hoteliers blame the fall in visitors on a lack of advertising for the island, the cost of getting there and the smoking ban.