by Greg Dickinson, The Telegraph, September 18 2018
A £1 per person per night tourist tax must be introduced in the Scottish Highlands to prevent people from being put off from visiting, a Highland councillor has advised MSPs.
Bill Lobban told Scottish Parliament’s Tourism Committee that the six million annual visitors to the region are putting excessive pressure on roads and parking, plus stretching amenities such as public toilets.
The Scottish Highlands have boomed in popularity in recent years, thanks in part to the success of tourism initiatives like the North Coast 500, which has brought visitors to the rugged north and northwestern regions of the Highlands.
Elaborating on his argument for introducing a tourist tax, Lobban told Telegraph Travel: “The increase in tourist numbers to the Highlands has been very, very welcome. It is, after all, our main and in some areas only industry.
“However, it does put massive strain on our infrastructure - roads, toilets, car parks and the like - and in these days of ever-decreasing funding from central government we have to make sure that we make the visit for our tourists as pleasant as possible. Allowing our infrastructure to deteriorate through lack of investment is not an option.
“I simply refuse to accept that a small charge of £1 per night will drive visitors away and I welcome any opportunity to get together with the industry and local residents to discuss a way forward.”
However, the suggestion of a tourist tax in the Highlands has not been welcomed by all. David Groundwater, Development Manager at the Federation of Small Businesses (FSB) told Telegraph Travel: “FSB has consistently opposed the introduction of such a tax since Highland Council first discussed it over three years ago.
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“Our research earlier this year revealed that the vast majority of businesses in the Highlands remained opposed to such a tax on visitors with 73 per cent opposed and 75 per cent believing it would have a negative impact on the local economy.
“Our members are concerned about the administrative impact and are worried about the message it sends to guests. Further, we’ve seen little in the way of promises from councils that the money raised from this tax will be used to boost tourism or business.”
Tom Campbell, Managing Director of the North Coast 500 initiative, tells Telegraph Travel that the question of a tourist tax requires a deeper understanding of what exactly needs improving in the Highlands. “The real issue is ensuring there is sufficient infrastructure in place to promote and develop tourism and the associated socio-economic benefits in the North Highlands,” Campbell said.
“Before there is debate about how to raise money to fund that infrastructure, there needs to be an understanding of what is required in the same way as any business would set out its priorities for growth and sustainability. Only when there is a detailed, costed and agreed case for necessary investment should there be a debate about how that is funded,” he added.
One of the most popular parts of the Highlands and Islands for incoming tourists is the Inner Hebridean Isle of Skye. Alistair Danter of tourism organisation SkyeConnect points out that local businesses already have to pay high rates of VAT.
“We welcome a discussion on the issue of a tourism tax but while we pay such high rates of VAT compared to other countries - and do not see any benefit from VAT in terms of ring fencing it for expenditure on tourism infrastructure - we are reluctant to support a tourism tax. VAT payments that go directly to Westminster from Skye, for which we see no benefits, total around £22 million per annum.”
As it stands, UK businesses charge 20 per cent VAT on everything that is sold, while overseas companies typically charge between 7 and 10 per cent.
What do the Highlands businesses themselves think? Speaking to Telegraph Travel, Gareth Paschke of the Cairn Hotel said: “The Highland tourism economy is made up of very small businesses. With owner-operators often working 12 to 14 hour days, every day of the season, what we don't need is another cumbersome tax to administer, especially after a 70 per cent increase in our business rates this year.
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“I have seen people in both private and public sectors work very hard. For a local authority to then take this hard work, squander the record tax receipts already being generated from this sector and now send the message - that you are no longer welcome here by way of a tax - is lazy and disrespectful. A classic tale of the Goose that Laid the Golden Egg. My ten year old gets the moral of the story, why can't our councillors?”
The debate rages on. For a tourist tax in the Highlands to go ahead, the Scottish Government will have to first pass legislation granting councils new tax-raising powers. The government has made it clear that they have no plans to introduce a visitor levy on the tourism sector in the near future.
Would you be happy to pay a tourist tax on your next visit to the Highlands? We want to hear your thoughts. Leave a comment below to join the conversation.
This article was written by Greg Dickinson from The Telegraph and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected].
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