Andrew McRae

Data compiled by FSB Scotland shows 21 out of 32 Scottish local authorities have been either discussing the idea or are actively pursuing plans to introduce a local levy. The FSB research is based on local authorities’ public statements and briefings about a Visitor Levy. 

FSB Scotland today said councils must work with small accommodation providers as they develop their plans. 

Andrew McRae, FSB Scotland’s policy chair, said: “Small businesses will play a key role in implementing and operating any local Visitor Levies introduced across Scotland. Without the central IT and accounts of the big hotel chains, guesthouses and B&Bs will be disproportionately impacted.

“They have lots of unanswered questions at this stage about how these schemes will work. How will the national online portal that is being developed for processing the levy work? Will it be ready in time and user-friendly for guesthouse staff who need to use it?”

Mr McRae continued: “Some of our members have warmed towards the idea of the Visitor Levy. They see the value in some of the potential investment which has been outlined in local infrastructure and services for the good of visitors, residents and businesses alike.

“However, it would be wrong to assume just because there are ‘tourist taxes’ operating around the world that any scheme will automatically work effectively in a particular local authority area in Scotland.

“We are keen to understand more about the particular concerns of small operators which is why the Visitor Levy is one of the key areas covered in our ongoing Big Small Business Survey. Previous survey findings showed concerns that revenue raised will go to covering holes in council budgets, instead of being invested in making areas more attractive to tourists. Directly involving small businesses in the decision-making process about where revenue is allocated is crucial to building their support and easing concerns.”

He concluded: “FSB Scotland has been working constructively with the city council in Edinburgh for a number of years, as it develops Scotland’s first Visitor Levy scheme, to help ensure small business concerns are heard and addressed. We stand ready to do the same in local authority areas across Scotland.”