Tourist tax was an idea whose time had come – Alyn Smith

as a Member of the European Parliament, serving on the Foreign Affairs Committee, I spend a lot of time in hotels in various places, and am regularly struck how many other places do not bat an eyelid at the idea of a nightly tourist tax. I’m delighted that the hard work put in by our city council and leader Adam McVey in particular has paid off and local government across Scotland will be able to implement such taxes if it suits them.
By The Newsroom
Published 4th Feb 2019, 05:00 BST

There has been, and remains, some controversy over the idea, but I applaud the co-operation between the council and the national government, and indeed the Green Party MSPs during the budget process in reaching a viable agreement that will empower local government, create a new revenue source in tough times and allow more investment in Edinburgh’s attraction.

I submitted my own views to the government consultation on the issue and think the argument is strong. We in the SNP want to see maximum local decision-making and maximum local autonomy, a tourist tax fits well with our philosophy. Our presumption should be that local authorities should have as much power as possible. While I do not think a tourist tax would work, or indeed be wanted, in all places up and down Scotland, I think it is something Edinburgh could make good use of, and other places should have the option to choose.

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Edinburgh is an international capital city, and a year-round destination. That is a huge success but it brings challenges and we need to be able to invest to meet them. We also, speaking as an Edinburgh resident, need to feel reassured that the locals are sharing in the success. Edinburgh is a tourist destination because it is a living breathing national capital, not a theme park or dusty museum. People are not coming here because of what we used to be, they’re coming to a vibrant and exciting living city, and keeping pace needs investment.

A tourist tax is a new idea for Scotland, but it is not a new idea, and one of the great things I can do as an MEP is bring ideas home. Barcelona, Budapest, Hamburg and Milan have all had different versions of it since 2012 and all are working well. Since then places as diverse as Berlin, Turin, Dubai, Palma Majorca, Abu Dhabi and Vilnius, to name just a few, have implemented different variations of a nightly fee for visitors.

A tourist tax can take many forms. It could be a nightly fee per head or per room, it could be as high as seven euros per person per night (as in Rome) or a charge per room (Dubai) or a charge based on a percentage of the cost of the room (Amsterdam, Berlin or Budapest). Personally I’m agnostic on my preferred system, I think we can trust councils to work out what is best for them, their citizens, businesses and indeed visitors. Our city council has proposed £2 per room night or two per cent of the room charge, capped at seven nights. That strikes me as a sensible starting point.

Edinburgh, and Scotland have a bright future, even with the challenges Brexit will bring unless we stop it. Making that future brighter will take leadership, co-operation and investment. I’m proud the SNP and Greens came to this very welcome decision and am sure Edinburgh will benefit from it.

Alyn Smith is an SNP MEP for Scotland

Related topics:EdinburghScotlandSNPAdam McVeyMEP