The boss of historic Highland manor house Achnagairn Estate has warned of the need to remain to competitive with the visitor levy looming.
Marina Huggett has described Achnagairn Estate bookings and enquiries as “buoyant” but admits the “uncertainty” over the tourism tax is leading to concerns within the sector.
MSPs passed The Visitor Levy (Scotland) Bill which will allow councils to impose an added fee for stays in hotels and bed and breakfasts, self-catering accommodation and campsites and caravan parks.
‘Uncertainty’ over cost of doing business
Ms Huggett believes key to surviving the latest tax is remaining competitive.
She said: “We are in a much better place. We are really busy with the volume of business that’s coming in.
“But the challenge is how long we can maintain our competitiveness in the international market with all the different taxes we are paying within the UK just now.
“With the visitor levy looming are we going to remain competitive because there’s no fixed amount. We really don’t know how much we’ll be paying so it’s difficult to price.
“It could be anything from 12.5% to 20%. It’s the uncertainty over the cost of doing business and the future.”
The 65-bedroom venue, in Kirkhill, near Inverness, has had to adapt to how it’s run in a bid to navigate through the hospitality industry difficulties.
Achnagairn Estate green team
Rising energy costs and staff problems were two of the biggest difficulties with bills soaring from £21,000 to £62,000 in a year.
Staff numbers are on the rise again with 35 compared to 62 pre-Covid.
As part of adapting how the business is run there’s been a new green team introduced in a bid to help with sustainability.
Ms Huggett said: “Staffing was a monumental crisis and although it’s still quite challenging because of Brexit, it has picked up tremendously.
“Energy prices have come down but we are working towards being a sustainable business and we have put in a whole bank of solar panels.
“We’ve got a green team within the business that are looking at the cost of energy.
“It’s about trying to manage the costs much more carefully now than we did before.
“It’s the way to go. You’ve got to be a sustainable business in this day and age.”
Future looking ‘rosy’
Achnagairn Estate operates as an exclusive use venue and attracts bookings from all across the globe.
Bookings and enquiries have increased during the past year.
Ms Huggett said: “Enquiries are buoyant. It’s picked up tremendously.
“The American market has come back. In fact it’s come back from all across the world.
“Everybody loves Scotland and wants to be in Scotland.
“Business is healthy at the moment and the longer term future is looking rosy if we can maintain our competitiveness.”