Badenoch tourism expert believes that tourism levy in Highlands is ‘inevitable’
A leading tourism expert from Badenoch believes that there is an ‘inevitability about the imposition’ of a bed tax in the Highlands
The tourism levy is back on Highland Council’s agenda with a major committee set to debate today (Thursday) whether to put the proposals of the scheme to a public consultation.
The council’s economy and infrastructure committee is considering the report on a potential Visitor Levy for the Highlands at Inverness headquarters.
Mark Tate, of Kingussie-based business and tourism consultants Mark Tate Associates Ltd, said visitors to and travelling within the UK are already among the most heavily taxed in the world.
He pointed out: “Visitors to and travelling within the UK are already among the most heavily taxed in the world with VAT on accommodation at 20 per cent compared to between 7 and 10 per cent in most of Europe and even lower sales taxes in North America.
“To raise those taxes even further will have a detrimental impact on our competitive position globally and for the Highlands within Scotland and the rest of the UK.
“Many of my clients are also concerned about the additional bureaucratic burden of administering this tax on behalf of Highland Council.
“That said there is now an inevitability about the imposition of a tourist tax in Highland and the devil will be in the detail, which to date have been scant.
“The consultation is awaited with interest.
“Many businesses would be more inclined to support if the funds raised locally are spent locally with decisions on how the money is to be spent made by local communities and businesses.”
Craig Mills, Cairngorms Business Partnership chief executive, believes a well-implemented Visitor Levy could offer valuable benefits to the area ‘providing it aligns with the needs of both visitors and local businesses’.
He said: “The CBP is committed to supporting initiatives that enhance the Cairngorms as a premier tourism destination…
“At present, our main priority is not focused on who administers the levy but rather on ensuring that businesses have the resources to manage the charge efficiently and that there’s complete transparency in how these funds will be allocated to benefit the region.
“As the consultation process unfolds, we see this as a key opportunity for local businesses to gain insight into Highland Council’s approach, voice any concerns, and seek clarity around the levy.
“The CBP will remain fully engaged in supporting our members throughout this journey, advocating for an inclusive process that considers all perspectives and seeks the best outcomes for the community.”
He continued: “Given recent budget pressures, however, we remain particularly mindful of the impact of new taxes or levies on small businesses who are already facing significant challenges.
“While we’re open to exploring the potential of a visitor levy, we cannot take a definitive stance at this time due to unresolved questions and concerns around implementation.
“Our goal is to work closely with our partners to safeguard the vitality of the Cairngorms’ economy and support businesses through any forthcoming changes.
Local Highland councillor Russell Jones (Independent) said he is in favour of a tourism tax in principle.
He poitned out: “We have to pay it when we visit most European cities and the funds are used to enhance infrastructure which is coming under increased pressure due to visitor numbers.
“I can see the benefits of a similar scheme here. However before any introduction a wide ranging consultation should take place and the findings given proper consideration before a decision is reached.”
Fellow councillor John Bruce echoed similar sentiments but said he was undecided at this stage how it would be best implemented.
More updates on this story later today.