A leading Inverness hotelier says plans for a visitor tax is another example of the industry being kicked when it’s down.
The Scottish Government has published a Bill to enable councils to invest more in local tourism facilities and services through a levy on overnight stays.
If passed, the Visitor Levy (Scotland) Bill will give councils the power to apply the levy based on a percentage of the accommodation cost.
‘Timing is terrible’
Tony Story, CEO at the Kingsmills Hotel Group, said the plan is “awful”.
“I personally find it abhorrent that an industry that is already taxed probably within the highest levels in Europe is to have yet another imposition of tax.
“I can’t see anything good in it and the timing is terrible.”
Mr Story said the sector faces “death by a thousand cuts” having been “battered” by rising costs of borrowing, energy and food, while Brexit has also hampered the recruitment of staff.
He added: “I’m finding the Scottish Government very anti-business just now and this is just another example of it.
“Along with the deposit return scheme, which is idiotic, and the potential of banning alcohol advertising, this is another reason for the industry to be under the cosh.
“Talk about kicking people when they’re down.
“The have given the gun to local authorities so they can take the blame for it.
“I feel sorry for local government. They have had budgets slashed and now they are given an opportunity to raise some some money for themselves.
“So it’s pretty inevitable they are going to do it.”
He said visitors faced with increasing costs may decide not to spend on hotels in future.
“Unless people are particularly well off they have to alter their lifestyle an what’s the first thing to go? They have to economise somehow.”
Facilities must be world class
Guy Crawford, CEO of Highland Coast Hotels, which operates six venues around the North Coast 500, said he looks forward to being part of the consulation to reinvest money raised on facilities and services.
He welcomes any initiative which seeks to improve the quality of infrastructure, the wider visitor experience, local communities and their economies in the north Highlands.
“The north Highlands attracts thousands of international visitors every year, so our facilities and services must be world-class.”
Highland Council leader Raymond Bremner said the introduction of the Bill is good news.
“The Highland Council has long supported the idea of a tourist levy to enable the local authority to invest in local infrastructure and is a commitment in our council programme.”
In 2019 councillors voted to support a Highland visitor levy to manage the effect more than six million visitors annually have on the area’s services and infrastructure.
This followed a survey of 6,600 residents, businesses and visitors to the region on the issue.
Highland tax could raise £5m-£10m a year
According to an assessment carried out by the council in 2019, a Highland tourist tax would raise £5 million-£10 million a year.
Implementation would not be until at least 2026.
Economy and infrastructure committee chairman Ken Gowans said: “Happily, we get thousands of tourists coming to the Highlands.
“But one of the down sides is the wear and tear on the general infrastructure. That cost currently is born by taxpayers.
“The levy gives us the ability, if the council so wishes, to levy a charge that can be used to offset that cost.”
Leading tourism consultant Professor Terry Stevens is an ambassador for Highland Tourism CIC which is developing a Higland environmental tourism brand.
He said many visitors come to the area for the natural environment.
“The climate and nature crisis the Highlands faces is so significant and we know that the majority of high value visitors would like to contribute to taking action to combat that.
“This is a fundamentally important opportunity for the Highlands as a destination and one of Scotland’s top tourism brands to re shape the strategy, the investment plan and work in partnership to learn from many of the best destinations in the world that make tourism tax work.”
David Richardson, development manager, Highlands and Islands for the Federation of Small Businesses, said a FSB survey found that 45% opposed the levy and 20% supported it.
But he questioned whether operating the levy in the Highlands and not other areas would discourage visitors from coming to the region.
Also, how can it be sure the money will be added to infrastructure budgets rather than non-tourism related items?
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