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Scotsman
17-07-2025
- Business
- Scotsman
Edinburgh tourist tax: New plea from accommodation providers over applying Visitor Levy to bookings
Hotels, guest houses and travel agents have issued a new plea to the city council over Edinburgh's forthcoming Visitor Levy. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The 5 per cent charge on overnight accommodation comes into force from July 24 next year, but accommodation providers are required to apply the levy to any bookings made for that date or after from October 1. Now, in a letter to the council, tourism organisations have warned the current timeline is "unworkable" because vital guidance on details of the levy has not yet been provided. Accommodation providers say they are still awaiting vital guidance before they can apply the levy to bookings Advertisement Hide Ad Advertisement Hide Ad The letter, co-ordinated by the Scottish Tourism Alliance (STA), says: "With less than three months remaining before accommodation providers must begin displaying levy-inclusive pricing, there is still no practical or technical guidance from the council or Visit Scotland, despite assurances this would be received. "While the levy may appear simple, its application is complex - particularly given the intricacies of accommodation pricing and booking systems. With no guidance, there can be no successful implementation." The council originally wanted the levy to be applied to all relevant bookings made after May 1 this year, but agreed to postpone the date to October 1 after accommodation providers said they would not be able to change their systems in time. STA chief executive Marc Crothall stressed the sector was not asking for the July 24, 2026, start date for Edinburgh's levy to be changed, but did want the October date for applying the levy to be pushed back, potentially to the start of January. Advertisement Hide Ad Advertisement Hide Ad He said there would not be many bookings for next summer before January and pointed out there were still legislative changes due to be approved in October. He said: 'When you look at the booking patterns, the majority of people will book their summer escapes in the early part of the new year. It doesn't make sense to progress with something that is not 100 per cent complete. 'For booking platforms, the calculation and all those things have to be enabled in the software, there is no way that technology platform will be ready for October 1. The last thing we want is people to present something that is factually incorrect. 'We're saying: 'Take a common sense approach, remove that October 1 deadline, even push it back to the beginning of January if necessary, make sure there is no additional cost being incurred by business and make sure we get it right from the get-go rather than having to amend something very soon after it has been implemented.' Advertisement Hide Ad Advertisement Hide Ad Lothian Tory MSP Miles Briggs said he sympathised with the stress felt by the tourism sector. 'I have expressed serious concerns about the scope and implementation of this legislation from the very beginning. I have heard from many worried business owners who have been dissatisfied with both the SNP and Edinburgh Council's approach. 'Now it is clear that there has not been enough guidance from the government, Visit Scotland, or the council ahead of the fast-approaching deadline for updated pricing. 'Our tourism industry in Edinburgh is vital to the local economy, and businesses are under enough pressure with the rapidly rising cost of energy, materials, and property. Councillors and ministers must listen to the concerns raised by the sector today and make the necessary amendments to protect businesses in Edinburgh. 'I join the STA in calling for comprehensive, coordinated Scottish Government guidance as a matter of urgency; timely, clear, and Edinburgh-specific guidance to complement the national guidance; and removal of the 1st October 2025 pricing implementation deadline and to instead adopt a realistic, coordinated timeline, set only after final guidance and legislative amendments have been released.' Advertisement Hide Ad Advertisement Hide Ad The council said it had been engaging regularly with industry representatives and groups as well as the Scottish Government on the implementation of Edinburgh's levy and would continue to do so ahead of October 1, throughout the implementation period and beyond. It added that national Visitor Levy Guidance was published in October 2024 by VisitScotland and high-level, Edinburgh-specific guidance was currently underway. And it said businesses had a responsibility to interpret the legislation and the national guidance and apply it to best suit their own individual business practises. A spokesperson said: 'Correspondence from the Scottish Tourism Alliance has been received and we'll be responding to it shortly.' ·
The Herald Scotland
26-06-2025
- Business
- The Herald Scotland
'We cannot control the wider geopolitical uncertainty'
However, following the re-opening of international travel, tourists from around the world have shown their love for Scotland in a very big way. As revealed by The Herald this week, the number of trips by international visitors to Scotland reached a record 4.4 million in 2024, a 10% rise on 2023. Spending by visitors on those trips also surged, by 7% to £3.9 billion, although the number of nights spent in Scotland fell, according to the latest Great Britain Tourism Survey, released by VisitScotland. Such figures surely make for hugely positive reading for not just the tourism industry but Scotland as a whole, given the way in which the economic benefits of tourism tend to spread throughout the country. And they certainly should not be taken for granted: just this week we have seen the precarious nature of global tourism writ large, as conflict between Israel and the US on one side and Iran on the other led to disruption in the skies over the Middle East. While this conflict was clearly of a different nature, it brought to mind the massive disruption to global travel that followed the 9/11 terror attacks in the US around 24 years ago. Read more: VisitScotland's director of strategy Cat Leaver cited a range of reasons when asked to explain the rise in international visits to Scotland, from favourable exchange rates to enhanced connectivity. She pointed to the appeal of Scotland's 'world-class visitor experiences', which alongside established favourites such as Edinburgh Castle and Stirling Castle boast a raft of new additions. These include Perth Museum - the new home of the Stone of Destiny - the revamped Scottish Crannog Centre, Rosebank Distillery, and the Lost Shore Surf Resort in Edinburgh. Scotland is also building an impressive reputation for hosting major events, illustrated last year by the World Athletics Indoor Championships in Glasgow, the Clipper Around the World Yacht Race in Oban, and the 152nd Open golf championship in Troon. Yet despite these encouraging signs, the tourism industry in Scotland is certainly not without its challenges. This point was assertively made by Marc Crothall, chief executive of the Scottish Tourism Alliance (STA), in a swift response to this week's figures on international visits to Scotland. Mr Crothall declared the surge in visits by overseas travellers was a 'welcome boost for many tourism businesses who have worked tirelessly to rebuild after the pandemic and maintain Scotland's reputation as a world-class destination'. But he made plain that the headline figures do not tell the full story as he highlighted the daily reality for the many businesses that provide the tourism experiences that those visitors enjoy. Part of this struggle is the significant rise in costs businesses have been forced to endure over recent years – including the steep rise in labour costs brought by increases in employer national insurance contributions and the national living and national minimum wage which took effect in April. It is also down to the continued weakness of the domestic tourism market – day trips and overnight stays in Scotland by residents of Great Britain – because of ongoing pressure on the cost of living. 'While international spend is rising, many businesses serving the domestic market continue to face enormous challenges,' Mr Crothall said. 'Rising operating costs, staff shortages, reduced profitability, regulatory burdens and declining domestic overnight stays and spend are all taking their toll. The reality is that too many businesses are still struggling to break even, and a busy summer alone won't secure their future.' It is a sobering reminder of the situation that faces the hundreds of small and medium-sized businesses that form much of the backbone of the tourism industry in Scotland. And it explains why the Scottish tourism industry is so concerned about the prospect of visitor levies being introduced by local authorities around Scotland. Read more: Given legislation is now in place that allows councils to introduce tourist taxes, a key focus of the industry right now is on ensuring that the method of collecting those taxes and the way in which they are calculated are less onerous than currently proposed. The STA has won widespread support in the industry for a series of proposals to modify the legislation to lessen the burden on the industry, submitted in a letter to Minister for Public Finance Ivan McKee last month. These include the adoption of a 'simple, proportionate fixed fee approach', rather than adding a percentage to the cost of an overnight stay as the legislation currently provides, and the introduction of a visitor QR code system to ensure the tax is paid directly to local authorities. It is abundantly clear that while Scotland's reputation is riding high among international tourists, the industry has big challenges in its local market that need to be acknowledged. The situation is certainly not lost on Vicki Miller, chief executive of VisitScotland, who in a blog post warned that the 'optimism' created by the growth of international visitors 'must be balanced with realism'. 'International visits and spend are up, yet visits and spend from UK visitors continue to be affected by the rising cost of living,' Ms Miller wrote. 'This is holding back the overall growth of Scotland's tourism and events sector.' Ms Miller added: 'Our insight shows that interest in visiting Scotland remains strong but for many domestic visitors cost is now a deciding factor. Some are choosing not to travel at all, while others are changing their plans to suit their budgets, opting for cheaper overseas alternatives, prioritising longer experiences and cutting back on activities and experiences. 'As the national tourism and events organisation, we cannot control the cost of living or the wider geopolitical uncertainty that may impact overseas markets in the months ahead. But what we can do, and are doing, is take clear, focused action to support the sector.'
