Plans allowing councils to introduce a tax on overnight visitors have been described as the “last thing” the tourist industry needs.
The response was among an otherwise muted reaction across the north-east, Highlands and islands to the Scottish Government’s proposed visitor levy, similar to ones used in cities such as Barcelona, Rome and Paris.
Nicola Sturgeon announced earlier this month that she will press ahead with plans to give councils the power to apply the tax on overnight stays.
She said this could help councils “fund activities related to tourism and related infrastructure”.
Aberdeenshire Council leader Mark Findlater, expressing his own opinion, said businesses are “going to the wall”.
Hit ‘left, right and centre’ by taxes
The Tory councillor highlighted the “amount of pressures” on the tourist industry as it grapples with rising energy bills and recovers from the Covid-19 pandemic.
“The last time we talked as an administration about tourist tax, it wasn’t something we were in favour of especially just now with the state of our tourist industry who have been hit left, right and centre by taxes anyway,” he told the Press and Journal.
“There are a lot of businesses going to the wall and this is the last thing you want to do to our very valuable tourist industry in the north-east of Scotland.
“We’re just coming out of lockdown and all the other things and our industry is trying to recover with all these extra costs on top.”
Aberdeen City Council’s previous administration – made up of Labour, Conservative and independent councillors – had called for the powers to be devolved from Holyrood.
They said the scheme would mean tourists paying an additional £1 a night for stays, boosting council coffers by an estimated £1.7 million a year.
Former council leader Jenny Laing previously said the money could be ring-fenced to pay for the “promotion” of the city and tourism sector.
But now a new SNP-Liberal Democrat coalition controls the Town House, at a time when tourist businesses are in recovery mode.
Aberdeen city open to visitor levy
Asked about the proposals, Aberdeen City Council leader Alex Nicoll, said his administration is “open to considering a transient visitor levy” but nothing has been discussed.
The SNP councillor welcomed councils being given additional powers so they can “consider the best options which deliver for people and businesses in Aberdeen”.
He added: “Nothing has been discussed or is being planned in this regard at this time.
“Before we took any action on this topic I am sure we would wish to discuss the issue with industry partners.”
Northern isles concerns
Leaders at Orkney and Shetland islands councils are also yet to discuss the proposals and reach an official position.
James Stockan, leader of Orkney Islands Council, suggested it could “put people out of business” in areas where tourism is struggling.
He added: “When we discussed it previously, we thought for the number of bed nights we have and the short season we have, we did not think it would be practical to tax locally on that basis because we wouldn’t have the economy of scale to even put in the infrastructure to do that to be able to make anything from it whatsoever.”
Emma Macdonald, Shetland Islands Council leader, said tourism jobs are “incredibly important”.
She added: “Any considerations regarding tax options needs to take this into account as we already are aware the cost of travel to Shetland is already a barrier.
“We also have large numbers of people who come to Shetland to visit family and friends and again we wouldn’t want to disadvantage people who are trying to keep connected.”
Leader of Argyll and Bute Council, Robin Currie, said a local visitor levy will “get careful consideration”.
He added: “A visitor levy is something that we will consider once we find out more about what’s in the bill and what it could mean for our area.”
Kathleen Robertson, leader of Moray Council, said the administration is yet to discuss the proposed bill.
Highland Council and Western Islands Council leaders could not be reached for comment.