Highland tourist tax ‘looks more of a threat’ to hospitality industry and council and Scottish Government should revise visitor levy, warns Inverness councillor
“Listen to the hospitality trade” over the planned tourist tax, a Highland councillor has urged.
Inverness Central ward member Cllr Michael Gregson made the plea after consultation closed over the proposed introduction of a visitor levy in the Highlands.
More than 4000 responses were received covering a wide range of views.
But before the analysis begins and a final decision is taken, Cllr Gregson has spoken out over what he believes is a “flawed and badly-designed” scheme which poses a “threat” to the tourism industry of the Highlands.
He said: “Even if you accept the principle, that we need improved tourism infrastructure, including a push to meet the Highland Housing Challenge, this flawed and badly-designed scheme looks more of a threat than a boost to the Highlands and Islands.
“Highland Council must ask the Scottish Government to think again, and above all, must listen to the hospitality sector.”
Following discussions with key stakeholders, Cllr Gregson explained his stance. He said: “We have a golden goose. The hospitality sector gives work to at least 20 per cent of the Highland workforce – tourism overall being around 43 per cent, a large proportion being small and medium-sized enterprises.
“It enables people to stay in their own areas across the region, and brings somewhere over £1.5 billion into the region. VisitScotland estimates 2.285 million nights were spent by tourists in the Highlands & Islands in 2023.
“This is a massive and key industry. We all want sustainable tourism - Highland Council, Highlands and Islands Enterprise, all sizes of business – and so we have to help sustain tourism businesses.”
“It’s excellent that 4000 responses have come in, and a range of opinions expressed. But as the consultation ends and analysis begins, it is emerging that there are concerns.
“We councillors have been fortunate that so many people have been in touch, as well as having Engagement Forums led by several chambers of commerce, Visit Inverness Loch Ness, and other representative organisations.
“It’s inevitable that discussion will focus on areas like the size and form of the proposed levy, its administration and collection, the relationship with HMRC, possible exemptions – and other matters impinging on the viability of businesses.
“It’s also essential we recognise the context of VAT levels and thresholds, the rise in employers’ National Insurance contributions, the rise in the Minimum Wage to Living Wage, seasonality, and accommodation, recruitment and retention difficulties. This issue does not occur in a vacuum.”
