The Press and Journal (Inverness, Highlands, and Islands)
The lunch
13
when the price goes up, you pass it on to the customer. We can’t do that.”
Our fourth guest is Adrian Watson, chief executive of the city’s business improvement district, Aberdeen Inspired.
He too was involved in the campaign to alleviate the impact of non-domestic rates (NDR) and he also sees its impact on a wide range of businesses.
“It is that human element that is often forgotten in this,” he said. “People from outside just see this as a business challenge. But at a local level in the city centre we have had people come to us in tears. This is the tipping point. It is that idiosyncrasy of being in the north-east – things were good before.” Ms Martin agrees: “2014 was a bonanza.” MrWatson continued: “I speak to the pubs and clubs as well as the hoteliers. But here is another real challenge. Aberdeen is struggling. The vacancy level on Union Street is higher then the national average.”
And as if the rise in rates wasn’t enough, moves are also afoot to bring in a tourism levy that would add an extra pound to the cost of booking a room.
Mr Atkinson points out there are merits and demerits to this proposal and the views of his members are split down the middle.
Mr Bream adds: “The thing with a levy is there are ways this could be almost acceptable and ways it could be horrendous.
“If you took the position where you created a system whereby for every £1 there as a guarantee the hotelier would get £2, that would be more tenable. That is where there is along way to go on the business case.”
Despite the challenges facing the hotels sector in the next year or so, there is light on the horizon. Much of this is whatAGCChas estimated to be the £5billion of investment being plugged into the region through a variety of infrastructure projects over the next 12 years. Several, including the new conference centre, the expansion of Aberdeen Harbour, the AberdeenWestern Peripheral Route and the re-opening after major refurbishments of the Music Hall and the Aberdeen Art Gallery will be on stream within the next few years.
Likewise events like the Great Aberdeen Run and Aberdeen Inspired’sownfestivals such as that atChristmasandthe highly successfulcomedyfestival last November also posit the region as attractive for uses otherthanhousingandfeeding oil and gas workers.
Ms Martin said: “Maybe we are a bit impatient here in Aberdeen. It takes time to build these things. Look at Edinburgh festivals - it has been going for 70 years. It is marvellous now. But I’d bet it wasn’t 70 years ago.
“The building blocks are there but away if we have these costs.”
Meanwhile, more good news was announced last week when culture secretary Fiona Hyslop announced that the business rates increase cap would also be extended to other accommodation including self-catering, guesthouses, B&B, timeshare units, hostels, camping and caravan sites.
MrBreamalso argues the ratings black hole that nearly swallowed the north east economy is due for a major revamp. Complicated by the two year lag between valuation and payment, he believes that business rates would be much simpler if it could be chargedmuchlike peoplepay for utilities. This has the possibility of turning the year’s delay “sticking plaster” into something all the more healing.
He said: “We do it in electricity and water - and actually it is pretty simple and easy to understand.
“There are all sorts of solutions you could apply that are out there in the world. You don’t need to reinvent things.
“This is the sort of think I’d expect Ken Barclay to be looking at.” it feels far