World’s best

The BHA wants British hospitality to be unrivalled and urges a rethink on VAT and proposed ‘tourist tax’

It is a major growth industry in the Scottish economy, and it needs more help.

Other sectors like oil, manufacturing and steel have been pleading to the UK’s Governments for more support to overcome their considerable struggles.

However, hospitality can also present a powerful case, that not only can it survive in the present difficult and uncertain business climate, but can prosper for its own and Scotland’s benefit.

Direct hospitality employment in Scotland increased to 256,000 jobs last year from 222,000 in 2010, according to research by Oxford Economics for the British Hospitality Association (BHA).

Indirect employment rose to 153,000 jobs from 118,000 in 2010, and Gross Value Added (GVA) from its goods and services increased to £4.6 billion (£4bn in 2010).

The people who work in hotels, restaurants and pubs and supply and service all shapes and forms of catering operations make up a significant Scottish industry.

In an age of high disposable incomes and a growth in overseas visitors thanks to the post Brexit-weaker pound, the prospects for the future of the hospitality industry look promising.

However, the horizon is not without its clouds, and industry leaders are calling for Westminster and Holyrood to use their powers to sweep them away.

The BHA is the leading members’ organisation for the hospitality and tourism industry in the UK.

It aims to shape the future of hospitality and tourism as a driver for international competitiveness, economic growth and valuable careers, with an ambition to create 300,000 new jobs in the UK by 2020.

It wants to ensure the British hospitality and tourism industry is the best in the world.

William Macleod, the BHA’s executive director for Scotland, said the industry has many aspects ranging from hotels and restaurants to catering in care homes.

Its issues vary throughout the UK, with concerns about the difficulties faced by coastal resorts in England and Wales not shared by prosperous towns like St Andrews.

“But we are worried by things like the 20% rate of Value Added Tax (VAT) on tourism services in the UK,” he said.

“We pay about double the rate they pay in most of the rest of Europe.

“Spain, Italy and France all have 10% and Germany 7%.

“The UK is one of only three EU countries not to have a reduced rate of VAT on visitor accommodation.

“The BHA is campaigning for the tourism services VAT rate in the UK to be reduced to 5% so we have a level competitive position with most EU countries.”

The Scottish industry’s call has been echoed by the country’s MSPs.

They have urged the Treasury to commission new research into the benefits of reducing the rate of VAT on tourism, a matter reserved for Westminster.

Concern about a tourism tax being imposed on operators in Scotland is another concern.

Visitors travelling to Aberdeen could soon be hit with a £1 per night tax on their hotel bills to raise more cash to help regenerate the city.

The money would be used to pay for the upkeep of museums, galleries, historic buildings and other tourist attractions.

Edinburgh is also considering the plan, which it is claimed could raise up to £15 million every year.

“We are absolutely against this as it would damage the viability of an industry which makes a huge contribution to our economy,” Mr Macleod said.

“These are only proposals and we would urge our councils and the Scottish Government to find alternative ways of funding infrastructure.

“One way could be through more Business Improvement Districts (BIDs) where contributions from members could provide funds.”

A further concern for the BHA in Scotland is the uncertainty caused by events like Brexit and the possibility for a further Scottish independence referendum.

“Businesses do not like uncertainty, but whatever happens we urge our Governments to realise that our European visitors are very important to the hospitality industry in Scotland.

“We do not want it to be made more difficult and expensive for them to come to Scotland.

“We also rely heavily on people from other parts of Europe to work in our hospitality industry.

“We want them to continue to be as free to come here to work after the UK leaves the EU as they are now.”

The BHA is campaigning for the tourism services VAT rate in the UK to be reduced to5%sowe have a level competitive position with most EU countries WILLIAM MCLEOD