The financial situation of the Isle of Man's tourism department is 'precarious' – and cuts cannot be ruled out.

That's the warning from Tourism Minster Martyn Quayle MHK, who says his department also faces a challenge over staffing, with no permanent replacement yet found for the post of chief executive and with the current director of tourism due to retire in October.

The Department of Tourism and Leisure was forced to shore up a massive overspend last year – and received no increase in its budget this year.

Mr Quayle said cuts had been made, mainly in marketing, to get back within budget following a £700,000 overspend on the TT, the result of unavoidable extra expenditure on safety measures, and a further £200,000 overspend due to spiralling costs of fuel for the Island's buses