Another blow for the hospitality industry or a welcome boost for tourism infrastructure?
The levy would be charged on overnight stays in some types of accommodation, and local authorities will be able to decide if they want to introduce it.
Two hoteliers give their reaction to the new Visitor Levy (Scotland) Bill.
Anne Gracie Gunn owns the Sonas Collection of hotels, which includes Duisdale House, Skeabost House and Toravaig House on Skye, and Knipoch House in Oban.
“Initially, I wasn’t in favour of the levy. I think we are being taxed enough,” said Anne.
“But on reflection, we can’t go on like this with the lack of facilities and infrastructure for tourists to enjoy.
“Skye is an incredibly busy place and I think it’s even busier this year.
“We have to do something and if that means a tourist tax to make improvements for our guests’ experience, it has to be.
“It’s going to put a strain on business; added cost, pressure and administration.
“But we have to do it and my only real concern is that the money is spent locally.
“We are a busy honeypot of an area. If Skye raises the revenue, I would be very disappointed if it wasn’t spent on Skye.
“We would like to see more toilet provision and there’s a dearth of bins for general rubbish.
“The state of the roads is catastrophic the further north you go.
“If you are driving on a road that’s making you uneasy, it’s bound to affect your holiday.
“It’s more the council roads than the main roads.”
Tourist tax should tackle lack of toilets and bins
Anne would like to see money spent in villages, for painting buildings, creating seating areas and on planting.
“After covid, it’s still an uphill struggle for many businesses to reset themselves.
“You can see where there has been two to three-years’ neglect on this sort of thing.
“Villages are trying hard, with volunteers too, which is amazing.
“You see huge amounts of money spent in Europe.
“Parking is another issue. They’ve done well at the fairy pools and the Storr, but other pinch points could do with help.
“It’s about trying to get visitors to more rural areas.
“Selfies and social media have driven this phenomenon around the pools and Old Man of Storr.
“But there are areas just as beautiful not on the mass tourist trail.
“Visitor dispersal could be looked at to allow each visitor to have a wonderful experience, rather than arriving at already crowded destinations.
“We have to try to help now or our destination will not have the reputation it currently enjoys.”
Tourist Tax in an already heavily-taxed industry
Andrew Mackay owns the Caithness Collection of hotels, which includes The Pentland and Castletown in Thurso and The Norseman in Wick.
He said of the levy: “I’m approaching it with trepidation. I’m concerned about a few things.
“It’s making us a very expensive destination. We are such a heavily-taxed industry.
“It’s another tax which will create more administration for the hospitality trade, a lot of which are SMEs.
“It’s more onus on owners of these SMEs. That’s one worry.
“It’s often compared against countries where there is a visitor levy.
“But it’s not apples for apples when comparing it because in most of these countries, hospitality has a more favourable VAT system.
“We have the same VAT as other cash-rich industries. It’s not a level playing field.
“I don’t want to be too negative, I’m not negative person.
“But we are incurring further charges and challenges and getting nothing back for it.
“I feel hospitality is the golden goose.
“And, will it be fair and comparable? Are all elements of tourism going to be victim to this levy?
“Are campervans being taxed? And domestic tourists? In Caithness we are further hampered because of our health services being stripped.
Will residents face Tourist Tax for essential healthcare and dental trips?
“Residents have to go to Inverness for medical or dental treatment. If your appointment is at 9am, you end up staying over. Will you have to pay a levy?
“What about corporate people travelling to Caithness for business. Do they have to pay?
“We promote the NC500 and slow tourism. Take your time, enjoy the culture, heritage and atmosphere.
“But if you’re slow tourists, you’ll be charged more because you’re there longer.”
“I’m on the board of Venture North and we asked our members if they thought the levy was a good idea. It came out 53% no and 47% yes.
“It is very split in the trade. Some see it as a good thing because they’ll get investment into infrastructure; laybys, visitor information panels, roads, etc.
Where will the money be spent?
“The crux of the matter is, will the levy be invested in tourism infrastructure or to plaster the cracks of the Highland Council budget deficit?
“If it’s used to fill potholes, which are an absolute disgrace, that’s unfair because what about all the articulated lorries carving up the highways?
“I’m all for a level playing field. It needs to be fair, concise and we know what the money is being spent on.”
“There has to be a break-off point where business can’t be held accountable for everything.
“The lack of public toilets in the Highlands is a disgrace and if the levy is used for that, it would be great.
Andrew says the levy could “put people off” if the region is seen as an expensive destination.
“You’ll have some councils who don’t introduce it at all.
“We call this the last wilderness of the UK. Beautiful landscapes and the welcome is fantastic, the food superb.
“We are bad at selling ourselves and I think if we put our prices up that would just work against us even more.”
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