Visitors facing £2 a night ‘tourist tax’

Councils say proposals will help plug funding gaps left by SNP cuts

TOURISTS could pay up to £2 extra a night to stay in hotels under plans to help councils plug growing funding gaps.

Local authority chiefs have demanded new powers allowing them to impose a transient visitor tax.

Councillors launched the bid yesterday, claiming they are desperate for extra money as a result of SNP budget cuts.

Local authority body Cosla said imposing a new levy on visitors to some of Scotland’s most popular areas will help to fund key services such as bin collections and road repairs.

But Scottish Tory tourism spokesman Rachael Hamilton said: ‘If this goes ahead, families on a budget will trim spending on other items such as in restaurants and attractions.

‘This isn’t simply a tourist tax, it’s a tax on business travellers and those enjoying a staycation. A tourism levy says visitors to Scotland aren’t welcome. The focus should be on making our destinations more attractive to tourists, not pricing them out.’

Cosla yesterday published the ‘Stay a little, pay a little’ document, which sets out options for councils in Scotland to consider if developing a tourist tax. It states that while any levy would not be a ‘national tax’, each local authority could introduce a system ‘if the circumstances are right’.

The report highlights Edinburgh, Aberdeen and Highland councils as already having worked on developing such a scheme. A number of options are laid out, such as having an additional fee for stays, or a levy added to infrastructure and transport – including airport taxes or travel fares.

Edinburgh Council is considering a £1 or £2 a night charge added to accommodation bills.

Officials have estimated the tax could bring in £11million.

Council leader Adam McVey believes the money would help increase funding to areas where tourism puts pressure on the city’s infrastructure, such as public transport and roads.

But a Scottish Tourism Alliance Council spokesman said: ‘Any new tax on tourists or the businesses serving them could have a potentially devastating long-term impact on Scotland’s tourism industry and local economies, which could lead to potential job losses.

‘It would also negatively impact businesses, beyond the accommodation sector that would be expected to collect any tourist tax, that rely on the tourism economy by reducing visitor spending.’

Cosla president Alison Evison said: ‘I can offer assurances that no local authority would take action that would be damaging to their area or local economy.’

She added that the money received by councils in the last local government settlement was ‘not the money that we required’ but that cash raised by tourist tax would be additional, not a replacement.

Garry Clark, of the Federation of Small Businesses, said: ‘A tax on tourism is an unpopular idea from Edinburgh to Ullapool.

‘Firms are worried about the message it sends to guests.’

The Scottish Government has resisted supporting a tourist tax and said there are ‘no plans’ to pursue these changes.

Comment – Page 16

‘Levy says visitors aren’t welcome’