Capital ‘would lose five times tourist tax haul’
PLANS to charge visitors an extra £2 a night to stay in scotland would cost the economy five times more than it would make, experts have warned.
a so-called tourist tax would, according to a report, result in plummeting spending by visitors, who would be less likely to splash out in restaurants, attractions and shops.
according to figures published by trade body UK Hospitality, a £2 charge – as proposed by the City of Edinburgh Council – would result in visitors spending £205million less every year across scotland.
Tourism chiefs claimed there would be a drop in spending of £94million a year in the capital alone – more than five times the £18million that council chiefs hope to rake in from the levy.
Willie Macleod, executive director of UK Hospitality, said: ‘These figures clearly demonstrate the very real damage that the introduction of a tourist tax could bring to Edinburgh and to scotland as a whole. at a time of significant economic uncertainty, one of the highest rates of VaT in the world and being ranked 135 out of 136 in terms of tourism price competitiveness, scotland should be doing all it can to attract tourism, not pushing us further out of reach.’
Council bosses across scotland have been seeking powers to introduce a local transient visitor levy (TVl), but this has so far been ruled out by the Government.
Ministers, however, published a discussion document this year which raised the possibility of a regional or even national levy.
The Government said this aimed to kick-start a ‘national discussion’ on the issue. The paper sets out a variety of ways in which the levy could be collected, including by adding up to £5 to the cost of a hotel room or a percentage of the bill.
Tory tourism spokesman Rachael Hamilton said the tax would ‘reduce scotland’s competitiveness’ and ‘ultimately hurt our tourism industry’.
Tourism secretary Fiona Hyslop said: ‘We have no plans to introduce a tourism tax but we are convening a national discussion to allow all different views to be heard.’
Edinburgh council leader adam McVey said: ‘It’s simply not credible to make scottish wide assumptions, which is why we are looking at a local tax to fit our local circumstances.’