The Herald

Tourist tax would cut Edinburgh’s income by £94m

- ALISTAIR GRANT

INTRODUCIN­G a tourist tax in Edinburgh would reduce visitor spend by more than £90 million, the hospitalit­y industry’s trade body has said.

City leaders want to charge visitors £2 a night – or two per cent of the cost of their overnight stay – in a bid to raise an extra £13 million annually.

However, hotel bosses and pub landlords insist the move would damage one of Scotland’s most important sectors.

Research by UK Hospitalit­y indicates charging tourists £2 per night could result in a reduced visitor spend of around £94m a year in Edinburgh.

If the figures are extrapolat­ed to cover Scotland as a whole, the calculated loss of visitor spending would rise to a “potentiall­y catastroph­ic” £205 million.

Willie Macleod, executive director of UK Hospitalit­y, said this showed the “very real damage that the introducti­on of a tourist tax could bring to Edinburgh and to Scotland as a whole”.

He added: “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 everything it can to attract tourism and spend, not pushing us further out of reach.

“The survey carried out by Marketing Edinburgh on behalf of City of Edinburgh Council highlighte­d that ‘just’ 3% of people wouldn’t come to Edinburgh if a tax were to be introduced.

“Our own findings concur, but what CEC convenient­ly neglected to state was that this 3% would result in a reduction in spend of around £57m per year – three times the amount that the proposed tax would generate in income.

“These figures simply cannot be ignored and I would once more urge the Scottish Government, as part of their own considerat­ions into a tourist tax, to heed the warnings that these figures represent.”

UK Hospitalit­y said data suggested 14% of visitors would spend less if a tax was introduced, while 3% more would stay outside the city.

This would bring the total loss of spend to around £94m, the associatio­n estimated.

Brigid Simmonds, chief of the Scottish Beer & Pub Associatio­n, said the levy would add to the sector’s challenges while Edinburgh Council leader Adam Mcvey has pointed to Paris, Berlin and New York as levying tourists but remaining popular.

 ??  ?? „ UK Hospitalit­y’s Willie Macleod said the tax would be damaging.
„ UK Hospitalit­y’s Willie Macleod said the tax would be damaging.

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