Latest news with #VisitorLevy(Scotland)Act
The Herald Scotland
15 hours ago
- Business
- The Herald Scotland
Scots tourism chiefs 'very sceptical about visitor levies'
City of Edinburgh Council leader Jane Meagher has previously declared the levy, capped at five nights in a row, will provide a 'once in a lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round'. Businesses will be required to apply the levy to any advance bookings made from October 1, 2025, for stays on or after July 24, 2026. While council chiefs agreed to push the start date back by three months to give businesses more time to prepare, the prospect of visitors being taxed on overnight stays, and hotels being handed the responsibility of collecting the tax, is continuing to rankle within the tourism and hospitality industry. Industry chiefs wrote to Minister for Public Finance Ivan McKee last week warning that legislation allowing councils in Scotland to introduce tourist taxes will 'fail at the first hurdle' and harm Scotland's economy and businesses. The letter, spearheaded by the Scottish Tourism Alliance, urged the Scottish Government to change the Visitor Levy (Scotland) Act to remove from businesses the burden of collecting the tax by introducing a QR code system paid directly to local authorities. 'We share the Scottish Government's ambitions to build a stronger economy and to make Scotland a world-leading visitor destination but are frustrated and very concerned that the visitor levy in its current form risks undermining that success,' the letter states. 'Taking a different approach to the rest of the UK on this policy is putting the sector at a competitive disadvantage and causing considerable complexity and unnecessary cost to businesses. Unfortunately, it is another example of a well-intentioned policy being badly implement.' Preparations for the levy are being made as hotels, bars, restaurants, and visitor attractions are continuing to battle a cost of doing business crisis which was recently exacerbated by sharp increases in employer national insurance contributions and national living wage that came into in April. Domestic tourism in Scotland has also failed to recover from the pandemic as strongly as the overseas market, as UK consumers continue to feel the pressure of the cost of living crisis. Read more: Leon Thompson, director of UK Hospitality Scotland, told The Herald that the industry is concerned the levy will undermine the competitiveness of Scottish tourism on the world stage, and highlighted the burden it will place on businesses at a time when they are grappling with high costs. 'Our position has always been that we are very sceptical about visitor levies, not just in Edinburgh but generally,' he said. 'The reason for that is just around costs [and] price competitiveness. It is possible for destinations to price themselves out of the market. We are very keen we don't see that happening anywhere in Scotland. 'The levy also comes with some costs for our businesses as well. They will have to collect the money on behalf of the council so therefore I think it is really imperative there is some financial benefit coming to businesses. The most obvious way to do that is to ensure that there is a steady flow of visitors coming to the city so that there are opportunities to increase revenue right across hospitality but particularly for the accommodation businesses that are going to need to collect the money.' Marc Crothall, chief executive of the Scottish Tourism Alliance, raised concern over the cost of the levy due to be introduced in Edinburgh, and shares Mr Thompson's concerns about the responsibility to administer the scheme being delegated to businesses. He told The Herald: 'Whilst there is a recognition that there is a need for more monies to be invested in the tourism and visitor experience and a transient visitor levy is a means to raising such monies, it is all about striking the right balance – both in the timing of the introduction of a levy, the amount that would be charged to the person staying overnight, and fully assessing the economic and competitiveness risk before introducing it. 'The 5% levy charge being applied on top of the accommodation rate is being mooted by many as too much, [as] most had expected a levy fee to be circa £3-£4pp [per person]. Nor is the percentage methodology approach acknowledged as being simple and easy for business and the visitor to work with, as well as it being costly to administrate. 'It is the firm view of many in the sector and among some local authorities that a much better approach to the charging and collection of a levy would be to apply a flat rate per person and for the levy to be paid via a digital-first approach, using QR code technology. In adopting this approach, the visitor pays straight to the authority, which takes away the cost, time burden and VAT (valued added tax) implications for the accommodation business, and benefiting the authority, who gets the money into their account quicker to spend. Read more: 'Most importantly, when levies are raised, they should only be used for investing in projects that directly enhance the visitor experience. Currently there remains concern [held] by many about where monies will be spent, the cost of administration and that the levy will be too much on top of already high costs, especially for Scottish and domestic visitors but not excluding international tourists, who may well go elsewhere or have a reduced stay. 'We also continue to be concerned that without more weight being given to the visitor levy forums, set up to advise on how the monies raised will be invested in enhancing the visitor experience and made up of representatives from both the sector and communications, then there is a risk that Edinburgh councillors could spend the revenue on local vote winners rather than on how the legislation intends.' Neil Ellis, group operations director Places Hotels in the capital and chair of Edinburgh Hotels Association, agreed that it is vital any revenue raised by the tax is used to enhance the visitor experience in the city. 'Business, leisure and event visitors are all contributing significant sums over the next few years so Edinburgh must communicate its intentions as loudly as possible,' he told The Herald. 'The majority of visitors to a destination don't mind paying as long as they know and can see where their money is being spent. I'm confident the new Visitor Levy Forum will succeed in ensuring a balanced approach is taken when reviewing and proposing levy projects.' Mr Ellis, who runs the Place Hotel on York Place, highlighted business rates and the recent rise in employer taxation were among other challenges currently facing the industry, noting that business rates are higher in Scotland than England, where relief is in place for hospitality firms. Michael Golding, chief executive of the Association of Scottish Visitor Attractions, said a recent survey of businesses had underlined the depth of concern about financial pressures in the sector. Some 78% of Scottish attractions said they were being affected by financial challenges, including the rising cost of energy, staff and reduced funding for the public sector and charities that make up a large portion of the sector. Just over half (51%) of attractions highlighted challenges around transport as a barrier to progress, following by staffing (35%), and seasonality (20%). Mr Golding said: 'There is widespread recognition across Scotland that investment is needed in our infrastructure as well as to fund the ambition of our national tourism strategy to be world leaders in 21st century tourism. However, we are in a post-pandemic economy, with high cost pressures, a lack of funding, staffing issues, seasonality, transport and more. 'Focussing on the combination of the cost of business, and the ability of our visitors to spend, making Scotland more expensive does create a risk that less people visit, or that they stay less long, and most importantly for attractions that visitors ability to spend on activities is reduced. So, we must seek to balance our need for investment, while mitigating the risks, that should be underpinned by a well evidenced economic impact study to show that the benefits.' One other ongoing challenging facing tourism and hospitality operators in the city concerns is access to labour supply. Mr Thompson hopes that the UK and EU reach agreement on a youth mobility scheme which would allow young people from countries within the bloc to sample life and experience work in Scotland. The UK and EU recently agreed to work towards agreement on a youth experience scheme that would make it easier young people from the bloc to work and study and vice versa. 'We still have some issues around workforce supply, so it is quite heartening to see the UK Government is looking very favourably upon an extension to the youth mobility scheme to help ensure our businesses can access young people from the EU to come and work here,' he said. 'I think a place like Edinburgh would do very well from being able to attract that talent from across Europe. That's a positive development in that space. If it does happen, certainly Edinburgh will be well placed to take advantage.'
The Herald Scotland
3 days ago
- Politics
- The Herald Scotland
It is time that campervan users are taxed off the NC500
Cross the Rockies from Calgary to Vancouver in Canada and the roads and campsites are absolutely full of them, mainly driven by overseas tourists with all the time in the world on their hands. Over there, they are very much welcomed, although there will undoubtedly be some grumbles from locals who are constantly stuck behind them, To be fair, the main road through the Rockies is pretty decent and there are plenty of places to overtake. But it is a very different situation in Scotland where campervans are treated as public enemy number one, particularly by people who live along the NC500. It is easy to understand why they are so controversial. For a start, the NC500 is not equipped to deal with campervans, particularly the famed Bealach na Ba from Lochcarron to the Applecross peninsula. It is a nerve-wracking series of hairpin bends straight up the hill and it is scary enough when you only have cars coming the other way to worry about. But despite signs at the bottom that state clearly the road is not suitable, many campervan drivers take the risk which is as stupid as it is selfish. It is not just the Bealach na Ba, though, where campervans are causing misery for locals, it is along the entire route - one which just isn't set up for such mass tourism with its sharp bends and single lanes. Glorious it may be but driving it comes with responsibility and that is where many campervan users let themselves down. To be blunt, locals have simply had enough of them and it is hard to argue against them. Read more Alan Simpson Last week, the Labour candidate for the Inverness & Nairn constituency at next year's Holyrood election proposed a tourist tax on campervans visiting the Highlands. Shaun Fraser said the roads 'cannot cope' with the huge increase in traffic in recent years. He said the move would form part of a 'fair and well–designed' visitor levy to help maintain roads and fund public services stretched by surging tourist numbers. The Highlands have seen a dramatic increase in motorhome tourism in recent years, with Highland Council estimating that nearly 36,000 campervans toured the region in 2022 alone. That has led to a surge in complaints about congestion, illegal overnight parking, and waste being dumped. Residents on the NC500 route have reported damaged verges, blocked passing places and overfilled bins during peak season. Highland Council estimates a 5% levy on overnight accommodation could raise £10 million a year — with that figure rising further if a charge on campervans is included. The council held a four–month public consultation on its draft scheme earlier this year and is now considering the feedback ahead of a full council vote. If approved, the levy could come into force by winter 2026 - the earliest permitted under legislation passed by Holyrood last year. That law, the Visitor Levy (Scotland) Act, gives local authorities the power to impose a charge on overnight tourist stays and spend the revenue on services that support tourism. While the levy must be used to fund tourism–related improvements, critics have warned it must not be used to replace core funding lost through years of cuts. Scottish Labour has long supported the introduction of a visitor levy and backed the legislation at Holyrood. The party says councils should be empowered to design their own schemes and use the money to improve facilities for both residents and visitors. However, it was recently criticised by Chancellor Rachel Reeves, who described it as a tax on 'ordinary working people'. Mr Fraser said: 'Initiatives such as the North Coast 500 have transformed the dynamics of Highland tourism, with a huge rise in campervans using rural single–track Highland roads. "Our roads cannot cope with this. It is a mixed blessing.' "Highland communities and local services must benefit from tourism. I support a fair and well–designed visitor levy and sensible measures to manage the impact of campervans. 'I would be open to looking at options attached to campervans, including number plate recognition to charge visiting campervans using Highland roads. I think that this should be considered.' While this may sound draconian, it is certainly well worth considering. Anyone who has driven the NC500, or at least parts of it, particularly in Wester Ross and Sutherland, can see the road is not suitable for such a vast amount of campervans. And with the rise of social media sites such as Instagram fuelling people's desires to get the best pics at beauty spots that regularly feature then the situation is not going to get any better. Any revenue raised that pays for better facilities and road improvements would be welcomed by pretty much everyone. For those put off by the levy, then they probably weren't the type to go and act responsibly anyway. Like everything else, it is not the campervans fault entirely, but the people who drive them and their passengers. They are to blame for the state of the place and there is absolutely no excuse for behaving like savages just because the area is beautiful but remote. They would be the first ones to complain if folk from the Highlands travelled down to their local park, left litter and human waste lying about and parked up on a path for days. Obviously, the good folk of the Highlands wouldn't dream of doing such a thing so why do people from urban areas think it's fair game? It is a good idea to tax them, in my opinion, in fact it should be extremely expensive so that it deters many people. Maybe training courses should also be mandatory, educating people on the right way to drive and behave generally when travelling on rural roads. Tourism is the main economic driver of the Highlands but it is in severe danger of becoming over-visited. It is no longer just a summer thing, but now lasts throughout the year thanks to initiatives such as the NC500. But there is a tipping point and we are probably nearly there already as many of the remotest areas become swamped and can no longer cope. Visitors all have a responsibility when they are on holiday and anything that can deter the irresponsible ones should be welcomed - by everyone.
The Herald Scotland
26-05-2025
- Business
- The Herald Scotland
Scottish Labour backs Highland campervan tourist tax
He said the move would form part of a 'fair and well–designed' visitor levy to help maintain roads and fund public services stretched by surging tourist numbers. READ MORE The Highlands have seen a dramatic increase in motorhome tourism in recent years, with Highland Council estimating that nearly 36,000 campervans toured the region in 2022 alone. That has led to a surge in complaints about congestion, illegal overnight parking, and waste being dumped. Residents on the NC500 route have reported damaged verges, blocked passing places and overfilled bins during peak season. NC500 at Glen Docherty (Image: PA) Highland Council estimates a 5% levy on overnight accommodation could raise £10 million a year — with that figure rising further if a charge on campervans is included. The council held a four–month public consultation on its draft scheme earlier this year and is now considering the feedback ahead of a full council vote. If approved, the levy could come into force by winter 2026 — the earliest permitted under legislation passed by Holyrood last year. That law — the Visitor Levy (Scotland) Act — gives local authorities the power to impose a charge on overnight tourist stays and spend the revenue on services that support tourism. While the levy must be used to fund tourism–related improvements, critics have warned it must not be used to replace core funding lost through years of cuts. Scottish Labour has long supported the introduction of a visitor levy and backed the legislation at Holyrood. The party says councils should be empowered to design their own schemes and use the money to improve facilities for both residents and visitors. However, it was recently criticised by Chancellor Rachel Reeves, who described it as a tax on 'ordinary working people'. Mr Fraser said: 'Tourism is a key aspect of the Highland economy, and it is important that we are sensitive with the introduction of such a scheme, but there has been a 65% increase in tourist numbers since 2012 and local infrastructure has not kept up with these demands. 'Scotland — and indeed the UK more broadly — is an outlier on this issue. 75% of European countries charge some form of visitor levy, including tourist hotspots such as Amsterdam, Barcelona and Venice. 'It has not harmed tourism in these places one bit, and it provides critical money to fund local amenities. 'Initiatives such as the North Coast 500 have transformed the dynamics of Highland tourism, with a huge rise in campervans using rural single–track Highland roads. Our roads cannot cope with this. It is a mixed blessing. 'Highland communities and local services must benefit from tourism. I support a fair and well–designed visitor levy and sensible measures to manage the impact of campervans. 'I would be open to looking at options attached to campervans, including number plate recognition to charge visiting campervans using Highland roads. I think that this should be considered.' READ MORE The levy has faced strong opposition from the hospitality sector. The Highlands Hotel Association has described the plan as 'exceptionally frightening'. They are concerned that because the tourist tax is not exempt from VAT, it will count towards a business's turnover. If a small accommodation provider is close to the £90,000 VAT threshold, adding the tourist levy to their bookings could push them over the limit — forcing them to register for VAT, charge it on all their services, and deal with the added administration and costs that come with it. MP for Caithness, Sutherland and Easter Ross, Jamie Stone, recently asked the Chancellor of the Exchequer to zero–rate any potential tourism levy. He said: 'Scottish councils now have the power to introduce a tourism levy. That has gone down extremely badly with the hospitality sector. In particular, they fear a tax on a tax — that would be VAT. Will the Government look at zero–rating that in the event that a tourism levy is introduced?' Ms Reeves replied: 'I want to welcome tourists to Great Britain and Northern Ireland. That is why we are securing trade deals with countries around the world, showing that we as a country are open for business. 'In the end, it is up to the Scottish Government which additional taxes they introduce, but as with income tax, the SNP never takes the side of ordinary working people.'
STV News
21-05-2025
- Business
- STV News
Tourist tax will be ‘death knell' for businesses, former minister warns
Plans to introduce a tourist tax in the Highlands will be the 'death knell' for many businesses, a former minister has warned. Fergus Ewing said the council's plans for a visitor levy were 'outrageous and poorly designed'. The SNP MSP for Inverness and Nairn said the tax was 'uncollectable' and would lead to a 'fiasco'. Highland Council has been consulting on proposals for a 5% visitor levy that it says could generate at least £10 million for the region. It says the cash could be used to help pay for improvements to infrastructure, including on its roads. The Visitor Levy (Scotland) Act was passed last year and allows councils to apply a tax on overnight stays. But it has been opposed by chambers of commerce in the area, as well as trade bodies representing hotels. Appearing before Parliament on Wednesday, Ewing called for a U-turn. He told public finance minister Ivan McKee: 'All four ministers know I have opposed this tax from the outset and voted against it. 'It is a percentage tax upon which there will be additional VAT payable – two sets of tax. 'The minister knows that I have argued that this is uncollectible, is going to lead to a fiasco, that nobody has worked out how to collect it, that the IT systems that will be necessary to administer it do not exist. 'Does the minister agree with me that this may cause the death knell, the death knell, of many hard-working, excellent bed and breakfast establishments in the Highlands and throughout the whole country, and he has been told this again and again. 'So will he call a halt to this outrageous and poorly designed tax?' McKee said it was up to local authorities whether they implemented a tourist tax but added that he would meet with Highland Council to discuss its plans. He went on: 'The tax is obviously in legislation, as the member is aware, and Edinburgh City Council will be the first council intending to take the tax forward next year, and as I say, we will continue to engage with other councils as we learn from that implementation, to understand what their plans are in their own local areas.' Douglas Ross, the former Scottish Tory leader, said the policy would impact Highland residents who would have to pay for overnight stays in different parts of the region. He called for residents to be exempt from the policy from the outset. McKee said he was 'well aware' of the concerns raised by trade bodies but reiterated that it is up to the Highland Councils whether to implement the policy. He said the Visitor Levy (Scotland) Act gave local government 'the most significant new powers' since devolution. 'Many businesses and business organisations absolutely recognise the value that the levy can bring,' he added. 'The levy will help, therefore, sustain and enhance the visitor experience, making destinations more attractive and competitive.' Highland Council has been approached for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
