Edinburgh tourism businesses say visitor levy threatens jobs and city’s reputation

Tristan Nesbitt, chair of the Edinburgh Hotels Association, said they were disappointed by the Scottish Government decision to give councils power to introduce a visitor levy as part of the SNP’s deal with the Greens to pass its budget.

He said: “We are very concerned as we have repeatedly warned that during a time of real economic uncertainty an extra tax on price sensitive visitors who choose to stay in overnight accommodation in Edinburgh, will lead to a decline in economic spend in the city, risk jobs, investment and have further unintended, reputational consequences to the city.

“The Scottish Government has ignored well researched, evidence-based economic facts from the city’s hotel industry and has opted for political expediency in reaching a budget settlement.”

He said Scotland was already seen as uncompetitive in price compared to other destinations. This additional tax will make the city even more expensive and less competitive.”

A formal consultation will be held this year before legislation is introduced for the new tax.

Council chiefs in Edinburgh have led the way in pressing for the power to levy a charge on visitors to help meet the city’s escalating costs.

Garry Clark, of the Federation of Small Businesses, said his members had repeatedly rejected the idea of a tourist tax in Edinburgh.

He said: “Accommodation providers, particularly smaller businesses, are worried about the impact of being an unpaid tax collector and the additional administrative burden that creates.

“Some non-accommodation providers are worried what impact it could have on the wider economy. If people are spending an extra £2 a night out of their budget on the tourist tax does that mean they are buying one less coffee in the coffee shop? If you multiply that by the number of visitors to Edinburgh you get quite substantial potential loss to the economy.”

And Steve Spalding, chief executive of tour company Timberbush, said the new tax did not send a positive message abroad.

“We spend a lot of money promoting the country and the city abroad and this is not constructive or positive.

“If it’s another cost to be applied that’s always a negative. Against the backdrop of uncertainty around Brexit, it’s just another thing.

“Even if it doesn’t stop people coming, it will prevent them from spending that money on other things.”

But Edinburgh International Festival director Fergus Linehan backed the tax.

He said: “Edinburgh’s global reputation and attraction relies on both its rich cultural heritage and its world renowned festivals. While this brings unique benefits, it also creates unique challenges. It seems reasonable and fair that a relatively modest amount towards the city and the institutions that provide these world class offerings should be shouldered by short term visitors.”

The council said it planned that for the first two years 1.5 per cent of the tax collected by accommodation providers could be kept by them, to help them with the change.