Tourism leaders have welcomed the government’s decision to give councils more flexibility in setting up a visitor levy.
Scottish government ministers conceded the rules were too onerous an expensive to adminster a new proposals will give councils the choice of setting a fixed amount or a percentage of accommodation costs.
They will also have the option of setting different fixed amounts such as for different geographical locations, times of year or types of accommodation.
A new bill, to be introduced early next year will also clarify how levies are applied to sales via third parties, such as booking platforms, and the information accommodation providers must share with councils. It is hoped there is enough time for it to pass during this parliamentary session.
The Scottish Tourism Alliance’s chief executive, Marc Crothall, said: “Following constructive talks with the Minister for Public Finance, Scottish Government officials and cross-party politicians over the past year, The Scottish Tourism Alliance (STA) is heartened that they have listened to our calls to introduce the option of a simpler, fixed-fee visitor levy charge.
“It shows the Scottish Government’s willingness to act on feedback from business to ensure we have a visitor levy in place that is fit-for-purpose. It will overall be easier and less costly for accommodation providers and local authorities to administer, and importantly more transparent for our visitors.
“We now look forward to working constructively in partnership with the Scottish Government to deliver meaningful reform of the visitor levy charging model, which we have championed from the very start.
“In the meantime, we urge all local authorities to consider pausing any plans for a visitor levy scheme as this plays out in the Scottish Parliament over the next few months. Change is coming just down the line.”
Fiona Campbell, chief executive at the Association of Scotland’s Self-Caterers and Vice Chair of Scottish Tourism Alliance Policy Group said the Expedited Visitor Levy Bill provides an “innovative and pragmatic mechanism” for reforming Scotland’s visitor levy, increasing local flexibility and demonstrating clear cross-party recognition that urgent change is required.
“The inclusion of a flat-rate option is a hugely positive step and something the industry could not have imagined being on the table even two months ago. It shows that the Scottish Government has listened to consistent, evidence-based concerns from operators, councils and wider stakeholders.”
Public Finance Minister Ivan McKee said: “Our aim has been to give councils the flexibility to design a levy that works for their areas, while ensuring businesses can easily understand what it means for them.
“The Act passed last year was an example of partnership working between the Scottish Government, local government and tourism businesses.
“Through regular discussions with our partners, it became clear that further flexibility would be welcomed. That is why we have decided to legislate next year, to ensure local visitor levies work effectively for everyone.”
Scottish Conservative spokesman on business, economy, tourism and culture Murdo Fraser said the change had only come about after “relentless pressure from the Scottish Conservatives and the tourist and hospitality industry.”
He added: “It’s a relief that Ministers have finally listened us and will allow councils flexibility to introduce a fixed rate visitor levy instead of a percentage.”
However, he said there were still issues over the need for, and benefits of the levy.
“This legislation is still going to impose enormous costs on, and damage to, a sector of the economy which is already struggling with too high a cost base,” he said.
“The introduction of the SNP’s visitor levy has been handled in the most cack-handed fashion, with no real assessment of its impact, no clarity about how it will be collected, and a series of farcical U-turns about what powers councils would have.
“This announcement finally confirms the flexibility to set a flat rate on the visitor levy, but it won’t alter the extra costs and red tape being imposed on businesses and travellers – including Scots moving around the country for work or family reasons – or provide any assurance that these funds will benefit local communities.”
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