A tax cut on tourism could unlock “millions of pounds” for visitors to spend in Moray every year, according to SNP MPs.
In 2015 visitors brought an economic boost of £105million to the region.
And mow Moray MP Angus Robertson has backed proposals to cut VAT on tourism industries, including visitor attractions, restaurants and accommodation.
It is believed the changes could drive a new wave of overseas visitors to Moray and the rest of Scotland.
He said: “A reduction in VAT in tourism would have the potential to generate millions of pounds of extra spending in Moray.
“It would reduce the cost of existing services, which would give visitors more spending power while they are here.”
MPs have written to Chancellor George Osborne to commission research on the benefits the move would bring.
The letter explains that businesses in the UK with a 20% VAT rate struggle to compete with neighbours like Ireland where dropping the level to 9% in 2011 saw 30,000 new jobs created.
Margery McLennan, executive director of Moray Chamber of Commerce, said: “Moray Speyside Tourism works closely with tourism businesses in the area, from bed and breakfast accommodation and hotels to the wide range of activity providers.
“In common with the rest of Scotland, I am sure that Moray tourism would benefit from any reduction in VAT on tourism related business. I would expect this to be particularly relevant in encouraging visitors from overseas.”
Currently 25 out of 27 EU members have reduced tax rates for tourism, with the UK one of the most expensive in the union.
Mr Robertson added: “Tourism is vital in areas like Moray, as is plainly obvious from the benefit we gain from whisky tourism.
“In recent years there has been a notable investment in tourism in Moray but the UK Government has a role to play, which is why I am urging the Treasury to revisit the issue of VAT as it relates to tourism.
“High rates of VAT are a serious challenge to the industry and we know that in countries where it has been reduced, there is clear evidence that tourism and the wider hospitality business thrives.
“Tourism in the UK is consistently held back by our uncompetitive tax environment.”