Tourist tax warning for ‘staycation’ Scots

Some of the biggest players in the hotel industry have turned their fire on the Scottish Government over its tourist tax plans amid claims they will create an “added burden” for Scots wanting to holiday at home.

Industry players have warned the tax would damage the countrys welcoming reputation. Picture: PA

Accor, IHG and Best Western are among the industry giants warning that Scottish families will be “incentivised” to cross the Border to England or fly overseas if ministers press ahead with plans for the UK’s first tourist tax scheme.

They have branded the prospect of a new tourist tax “incomprehensible” in the face of current “turbulence” in the industry and warned that its introduction would be at odds with the country’s reputation as an “open, warm and competitive destination”.

Ministers are expected to introduce legislation next year in the wake of calls from local authorities for powers to manage the impact of the industry.

However, the hotel industry is lobbying for a rethink over suggestions that visitors could have an extra £2 added to their daily accommodation bill.
A new open letter to ministers, which is also signed by hotel owners in Crieff, Forres, Argyll and Edinburgh, said the introduction of the tourist tax, which is also known as “transient visitor levy”, had the potential to “damage Scotland’s visitor economy, impose costs on Scottish families and overburden the hotel sector and visitors alike”.

It states: “The tax will bypass day trippers whose local environmental impacts are significant, yet who spend significantly less than overnight visitors to our high streets’ shops and hospitality venues. Crucially, it will be an added burden on Scottish families who holiday domestically, incentivising them to cross the border to England or to fly abroad, hitting local businesses. The plans for this tax need to be stopped to ensure future competitiveness.”

Kate Nicholls, chief executive of the lobby group UK Hospitality, said: “The senior-level signatories of this letter demonstrate the level of concern about how this ill-thought through proposal will damage Scotland’s reputation as a world-class tourism destination, increase costs and put thousands of jobs at risk.

“The hospitality sector is already over-taxed, with sky-high business rates and one of the highest VAT rates in Europe.

“It is time that this proposal was shelved and for the Scottish Government to discuss with business how we can secure a bright and sustainable future for Scottish business.”

A spokeswoman for the Scottish Government said: “We’re committed to enhancing the tourism sector’s economic, social and environmental contributions, as well as empowering communities by devolving more control to councils and making local taxation more progressive.

“The transient visitor levy would not be a national levy – it will be for individual local authorities to decide if they consider it appropriate locally to apply a charge, with any revenues being spent on tourism-related activities. Our consultation on the proposed introduction of a transient visitor levy received more than 1,000 responses from a wide range of individuals and organisations and we will take account of the views expressed before introducing draft legislation next year.”

Adam McVey, leader of Edinburgh City Council, which has been lobbying the government for tourist tax powers for several years, said: “We need voices from all sectors to make their views known and our own engagement with the hospitality sector has helped us shape our proposals for a transient visitor levy.

“We have substantial evidence from our own studies and those by Marketing Edinburgh and Edinburgh Chamber of Commerce that our plans are workable and simple for accommodation providers to adopt, and the majority of visitors, residents and accommodation providers believe it’s the right choice for the city.

“When surveyed, 88 per cent of tourists said they wouldn’t be put off visiting our city and it’s certainly not deterring hoteliers, who are continuing to choose Edinburgh as the place to invest and who record the highest occupancy rates in Europe.

“Edinburgh is exceptionally popular destination and still has the most pulling power for tourists visiting Scotland. This goes way beyond price sensitivity and is about our heritage, our culture, our festivals and everything which makes Edinburgh unique.

“We have the chance to better manage this success for the benefit of our residents and help our city to thrive.”