The panel which manages Jersey's Tourism Development Fund has asked the island's economics minister to widen the scope of the fund's remit.
The fund was set up in 2001 to support projects by non-profit organisations to attract more holidaymakers.
The States agreed to set aside £10m over a total of five years, but so far only £2.2m has been paid into it.
The panel said it asked the minister if private sector organisations could also apply for grants.
The panel said it could then support more projects which brought extra visitors to the island and improve what Jersey had to offer as a holiday destination.
In its annual report, the tourism fund panel said it saw a need for a "substantial change" to the current applications process in order to be able to incorporate the private sector.
Panel chairman Peter Funk said he met Economic Development Minister Philip Ozouf and that Mr Ozouf was supportive of such a widening of the scope of the fund.
The panel said it was now working on proposals.