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, while Argyll and Bute Council became the fifth to halt its plan after only one in five respondents to a consultation supported the proposed 5% charge on overnight accommodation.
It joins Shetland, Orkney, Comhairle nan Eilean Siar (Western Isles) and South Ayrshire in agreeing to pull back on the tax plan.
The Scottish government has added to the uncertainty by seeming to change its 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.
“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.”
Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, said Argyll and Bute’s pause creates space for other charging models to emerge.
“The council joins a growing number of local authorities taking time to reassess their plans in light of ongoing stakeholder discussions and potential Scottish Government changes.
“We would encourage others to follow this sensible lead. Indeed, there’s already a growing momentum as Shetland, Orkney, Western Isles and South Ayrshire have already done so, showing the current percentage-only charging policy lies in tatters, showing the need for a bold and fundamental rethink.”
Hisashi Kuboyama, FSB’s west Scotland development manager, said: “There is no ‘one-size-fits-all’ when it comes to the Visitor Levy.
FSB has highlighted the potential administrative burden for small accommodation providers, such as B&Bs and guesthouses.
It noted 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 £35 million a year.
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