Scottish Daily Mail

Capital ‘would lose five times tourist tax haul’

- By Rachel Watson Deputy Scottish Political Editor

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.’

 ??  ?? Fine balance: Visitors flock to Edinburgh to see performers during the festivals
Fine balance: Visitors flock to Edinburgh to see performers during the festivals

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