City leaders defend plans for tourist tax

● Council chief claims businesses like Virgin and Airbnb back proposals for levy

Edinburgh City Council leader Adam Mcvey has insisted large firms like Airbnb and Virgin back a tourist tax as he defended plans to introduce the levy in Scotland’s capital.

Mr Mcvey said the tax would cost visitors “no more than a cup of coffee” as he joined other council leaders to discuss the charge at a session of Holyrood’s culture and tourism committee.

Highland Council convener Bill Lobban claimed the levy was required to prevent visitors being put off by having to “go to the toilet behind a bush” in rural areas.

Mr Mcvey said the proposed levy would apply all year round but would be capped at seven nights so those visiting the Capital for longer would not be penalised..

More details of the planned tax are due to be presented to councillors next month.

But nothing can happen until the Scottish Government agrees to give councils the power to introduce the tax.

Putting the case to Holyrood’s culture and tourism committee, Mr Mcvey said the tax would help meet the extra costs Edinburgh faced from tourism. “This is a way of finding additional revenue to sustain what is a huge and crucial part of Edinburgh’s economy.”

He said the tax could raise around £11m a year for the city.tory MSP Jamie Greene said the Federation of Small Businesses had said three quarters of its members felt a tourist tax would have a negative impact and the culture and tourism secretary had warned against “hammering” the industry.

He asked: “If the industry isn’t in favour, if small businesses that it will affect aren’t in favour of it and it sounds like even the government itself are not supportive, do you feel you’re fighting a losing battle?” But Cllr Mcvey insisted there was no industry consensus on the issue. He said Virgin Hotels, Airbnb and others backed a tax.

“There are industry voices who understand the impact this could make in supporting the sector.

“The industry behind closed doors, especially one-on-one with individual businesses, are taking a very different approach to the less than measured contribution by some of the industry bodies you will hear.”

MSPS heard that the six million annual visitors to the Highlands bring £1.2 billion a year and support 20,000 jobs, but put pressure on roads, parking and public toilets.

“Our infrastructure is deteriorating and it will lead to a negative impression, and that will cause reputational damage,” Cllr Lobban said..

He said a dependable longterm funding solution is needed “otherwise we run the risk that visitors just won’t come back”.

He added: “Personally speaking, I don’t actually accept the argument that visitors will be deterred from visiting the Highlands if we charge them a £1 a night bed levy.

“In the Highlands we have some of the best food in the world, the best accommodation and the most magnificent scenery, but all that can come to nothing if a tourist pulls a wheel off his car or has to go to the toilet behind a bush.”