Time is running out in Badenoch and Strathspey to speak on possible visitor tax
As the deadline approaches for public views on the proposed Visitor Levy Scheme in the Highlands, the boss of the country’s self-caterers’ association is urging the business community to get involved in the debate.
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “We would encourage all businesses in the area to respond to this important consultation.
“The ASSC commends The Highland Council for engaging with stakeholders as well as their commitment to an evidence-based approach with a proper assessment of the responses.
“Given the value of the tourism sector to the Highlands, we simply cannot afford to make mistakes. If taken forward, it needs to be right from the outset and rushing such an important decision benefits no one.”
The association has major reservations about the introduction of a tourist tax in the Highlands and elsewhere in Scotland, she said.
“We believe that a VAT-attributed percentage rate is overly complex and costly for accommodation providers. This stems from deficiencies in the national legislation and the ASSC will be imploring the Scottish Government to urgently revisit the charging model.
“All levels of government must work closely with the business community – those who will ultimately be responsible for the administration of any new tax – so that legislation is fit for purpose and the regulatory burden is minimised.”
Highland Council convener Bill Lobban this week thanked those who had attended information events in person and on-line.
“If anyone has been unable to attend any of the sessions, there is still time to feed your views into our consultation as it runs up until March 31,” he reiterated.
“In addition to the public events, we’ve taken part in several sessions specifically for the business community. As well as getting feedback from businesses and the tourism sector, it is important that we gather as many views from individuals, community groups and businesses as possible to make the consultation inclusive and ensuring that it fairly and accurately captures opinion and feedback from across all communities.”
As well as a link to the consultation portal - the information on the council’s website includes helpful FAQs that have been updated with questions raised at the public engagement sessions.
Councillor Lobban added: “All comments received from the on-line consultation and public engagement sessions will be analysed and included as part of a report that will be presented to council at a future date. I therefore encourage anyone who has not yet filled in the on-line consultation, to do so before the deadline.”
A report will be considered at a future meeting of The Highland Council which will set out the findings of the consultation.”
In this week’s Strathy one local estate owner spoke out on the issue, asking “Who came up with this nonsense?”
Walter Mickelthwait, at his award-winning Inshriach Estate between Aviemore and Kincraig, said: “Most of our income is from accommodation, courses and holidays and so on.
“In a good year we turn over £160,000. After all our fixed costs and the VAT we make a margin of between 15% and 20%, before taking a wage. Give or take that leaves between £20,000 to £30,000.
“From that we need to cover any extraordinary maintenance, improvements required to comply with legislation and investment in the business to keep it competitive. It's definitely a lifestyle on those margins. Last year cost us £30,000 but we made improvements to stay compliant and to make it more appealing to guests.
“The business is also at the mercy of interest rates, insurance costs and energy bills, all of which are at record levels. The 5% Accommodation Levy as proposed would tax us to the tune of £8,000 per year, regardless of whether we are turning a profit - 5% doesn’t sound a lot but that’s a third of our profit in a year when we don't need to fix anything.
“Is the council proposing that we just ramp up all our prices and pass that straight on to our guests?”
Mr Mickelthwait, a one-time winner of Channel 4’s Shed of the Year competition, whose Inshriach Gin is rated Gold by the industry, argued: “At the end of the day we will have to pass it on because we can’t cover it but our guests aren't really the problem.
“We already pay to have our water tested, bins emptied, septic tanks drained, electrics checked, PAT tests done. Our guests don't put a strain on the roads, drive on the verges or need somewhere to empty a chemical toilet.”
