Pause Visitor Levy Plans, Councils Urged

Hospitality and small business leaders are urging local authorities to review their plans to implement a visitor levy amid uncertainty over the legislative process and the economic impact on their area.

Stirling, Dumfries and Galloway, and Perth and Kinross councils are all currently consulting on a levy, and UKHospitality Scotland is now urging local authorities to review whether plans to implement a levy is right for their areas.

The Scottish government has added to the uncertainty by apparently seeking to change its own policy on the power of councils to levy a flat-rate charge.

Leon Thompson, Executive Director of UKHospitality Scotland, said: “The impact of a visitor levy on visitors and businesses is still unknown, so Argyll and Bute Council is right to rule out implementation of a visitor levy.

“Argyll and Bute’s consultation showed a majority of respondents did not support the levy and this is a clear example of a council listening and acting on concerns from local residents, businesses and trade associations like UKHospitality Scotland.

“There remain many questions about the visitor levy – from its economic impact to how it will be legislated in the future. There is now uncertainty about whether, or when, visitor levy legislation will be changed to allow the use of a flat rate fee.

“I hope other councils will follow the pragmatic approach of Argyll and Bute by pausing their plans and taking stock of the economic realities of accommodation businesses.”

Hisashi Kuboyama, FSB’s west Scotland development manager, said: “We are pleased Argyll and Bute has listened to the concerns of local businesses and decided against pressing ahead with a local Visitor Levy.

“There is no ‘one-size-fits-all’ when it comes to the Visitor Levy, so it is vital that councils carry out a specific assessment of the potential impact in their own area as Argyll and Bute did, and listen and respond to any concerns of local businesses.”

FSB has previously highlighted the potential administrative burden for small accommodation providers, such as B&Bs and guesthouses.

It has also emphasised the findings of a recent impact assessment commissioned by the Welsh Government, which found a visitor levy could reduce tourist numbers by up to 2.5% and cut visitor spending by as much as £35m a year.