Tag: Association of Scotland’s Self-Caterers

Edinburgh poised to declare Scotland’s first visitor levy

Councillors set to grasp opportunity to introduce a levy that will ‘enhance and improve the city of Edinburgh’

After years of campaigning and engagement – including successfully advocating for a visitor levy to the Scottish Government to bring forward necessary powers – the Council is set to agree the Visitor Levy for Edinburgh scheme this month.

Following support from Councillors in August and the results of a 12-week public consultation, updated officer proposals will be considered by the Policy and Sustainability Committee on Friday, 17 January and by all Councillors at a special meeting on Friday, 24 January.

With over 4,500 responses, the wide-ranging consultation with residents, businesses and visitors reveals most people are aware of and supportive of the Council’s Visitor Levy plans.

Slight adjustments to officer recommendations have been made to reflect the public feedback, including:

  • 5-night cap: Capping Edinburgh’s levy at 5 consecutive nights per person, rather than 7
  • Campsites and caravans: Temporary campsites and parks proposed to be liable for the levy
  • Refunds within 5 working days: for all visitors eligible for national exemptions
  • New transition period: a levy grace period until May 2025 for bookings made for July 2026
  • Admin support for accommodation providers: equalling 2% of visitor levy income

If agreed, Edinburgh’s Visitor Levy charge will start being applied to bookings made on and after 1 May 2025 to stay in overnight accommodation in the city on and after 24 July 2026, representing a significant step forward in securing a new funding stream for the city.

Once established, the levy is expected to raise up to £50 million a year.

Council Leader Jane Meagher said: “This is the moment we have been working towards – a once in a lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world. 

“With income of up to £50 million expected once it is established, the funding could provide Edinburgh with the single biggest injection of new funding this side of the millennium, providing a unique opportunity to further improve and protect all that makes Edinburgh the incredible destination it is today.

“We’ll be able to use funds to help us manage tourism sustainably and boost projects which benefit the experience of visitors and residents. I’m looking forward to working with Councillors to agree the scheme this month, which will allow further work to be carried out on the details of Edinburgh’s new levy.”

Some businesses have expressed concerns over Edinburgh’s ‘Tourist Tax’ proposals, however.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “Given the importance of the tourist economy to the capital, Edinburgh Council cannot afford to be reckless with these plans. The implementation of short-term let licensing was a policy shambles and we cannot have history repeating itself with the visitor levy.

“Many simply don’t realise that this tax won’t just be paid by international visitors but by ordinary Scots staying in the city – be it for business purposes, seeing friends, visiting family in hospital, or taking in the Fringe. 

“Other European cities might have it, but they often charge a small flat rate, don’t charge their own residents, and don’t have a 20% VAT rate. The schemes are not comparable. There is a real risk of undermining Edinburgh’s position as a leading destination. 

“This policy will also disproportionately impact small local accommodation businesses, including self-catering and B&Bs, further increasing the administrative burden. The accumulative regulatory impact could cripple them at a time when recovery is precarious.”

“We also fear that the transitional period is too short. The Council still has a lot of work to do to reassure business that these plans won’t erode the very industry it is supposedly meant to support.”

‘Bombshell’ report shows short-term lets boost Scottish economy by £864m per year – with no evidence of housing impact

BiGGAR Economics challenges ‘false narratives’ surrounding Scotland’s self-catering sector now at risk from heavy-handed government regulation

NEW independent analysis from a respected Scottish consultancy reveals the substantial positive economic impact of Scotland’s self-catering industry which was also shown to have a negligible effect on housing.

BiGGAR Economics calculated that short-term lets (STLs) contribute nearly £1bn gross value added (GVA) to the Scottish economy while supporting approximately 30,000 jobs. By accommodating visitors, STLs generate economic activity across Scotland, with the local impacts exceeding residential use, supporting an additional £32,400 GVA per property.

Guests staying in self-catering accommodation, termed ‘secondary lets’ in Scottish STL legislation, also spend more than the average visitor to Scotland, with knock-on gains for related tourist and hospitality businesses. Alongside this huge economic boost, the researchers also highlight that self-catering accounts for less than 1% of the country’s total housing stock.

This challenges the narrative that STLs are fuelling Scotland’s housing crisis, with self-catering at only 0.8% of the country’s housing stock, too low a proportion to have a meaningful impact on local housing markets. Moreover, according to the report, in every local authority area, economically inactive empty homes account for a larger proportion of total dwellings than from secondary lets.

The key headlines include:

  • STLs are estimated to generate £864m GVA and support 29,324 jobs across Scotland;
  • Edinburgh and Highland together account for 44% of the total economic impact but the sector’s benefits are dispersed throughout Scotland;
  • The annual GVA associated with an average owner-occupier/private rented household in Scotland was £14,451, compared to £50,159 for a two-bedroom STL; and
  • STLs make up a tiny proportion of Scotland’s housing stock, with self-catering accounting for just 0.8%. This is considerably less than the 3.6% that economically inactive empty properties account for.

This study comes as the Scottish Government published an implementation update report on STL licensing which the industry maintains did not adequately address their longstanding concerns. At a local level, councils such as Highland and Edinburgh are also assessing their regulations.

BiGGAR’s new analysis is based on the best available evidence on STLs in Scotland. The findings have been shared with Scottish Government Ministers and officials.

Graeme Blackett, Director of BiGGAR Economics, said: “This report shows that secondary lets make an important contribution to Scottish tourism and economy overall, supporting almost 30,000 Scottish jobs.

“Our research also concluded that it was clear that secondary lets are not a driver of the wider Scottish housing market.

“If short-term let regulations leads to a reduction in the supply of secondary lets, that will have a negative impact on the tourism economy, without delivering any solutions to Scotland’s wider housing challenges.”   

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “This is yet more compelling evidence that short-term lets aren’t the main contributor of the housing crisis but are instead turbocharging local economies with a near £1bn positive impact while supporting 30,000 jobs.

“The current unbalanced regulatory framework does not reflect this reality and changes are needed before irreversible damage is done.

“Local councils should take heed of the report’s findings when considering their approach to planning policies and control areas to ensure the relatively small number of valuable short-term lets are protected.

“For policymakers, the message couldn’t be clearer: you can’t solve a housing crisis by producing a crisis in Scottish tourism by decimating local businesses that underpin local economies. Attention must shift to the real causes of the housing crisis.”

Economic-Impact-of-Short-term-Lets-in-Scotland-Report-by-BiGGAR-Economics-11Dec24Download

Government regulations ‘causing spike in mental health problems in Edinburgh’s tourism sector’ 

New survey: government regulations causing spike in mental health problems in Edinburgh’s tourism sector

The Scottish self-catering industry highlights that Edinburgh-based operators report the highest levels of mental health issues in the country due the lingering threat of business closures.

A membership survey conducted by the Association of Scotland’s Self-Caterers (ASSC) shows that the Scottish Government’s short-term let regulations are causing a mental health crisis amongst small business owners.

In October 2024, around 450 operators were questioned by the trade body in an online survey as it continues to gather evidence around the impact of STL regulations.

Overall, around one-in-ten (11%) respondents said they had experienced no mental health issues as a consequence of regulatory changes. Incredibly, this figure drops to 0% in Edinburgh where the most stringent STL controls can be found.

The overwhelming sentiment is that the regulations have created financial strain, as well as increased anxiety and uncertainty, with sectoral discontent abundantly clear.

In terms of the key findings:

  • Across Scotland, over two-thirds (68%) had either experienced a ‘negative’ or ‘extremely negative’ impact on their mental health and wellbeing from recent regulatory changes;
  • This was particularly acute in Edinburgh where around 90% of operators had seen a negative or extremely negative impact; and
  • Edinburgh also had the highest number of extremely negative responses (46%).

The professional and personal strain is taking its toll. Several respondents highlighted the emotional toll, such as sleeplessness, anxiety, stress-related health issues, and feelings of helplessness, especially with the uncertainty of future income and business viability.

Many respondents also mentioned the high cost of compliance, administrative burdens, and delays in licensing applications, particularly for those relying on self-catering as their primary income.

These disturbing findings come as BiGGAR Economics published their independent analysis of the sector in Edinburgh. This showed it generated £154m in GVA and supported 5,580 jobs in 2023, while only having a negligible impact on housing with empty homes far outstripping the numbers of STLs.

Conscious to the issues facing small and micro businesses, the industry has attempted to work with national and local government to address the outstanding challenges to the regulatory framework but often to no avail. Edinburgh Council has now suffered a hat trick of legal setbacks, most recently with their u-turn over issuing three-month suspension notices.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, commented: “Running a small business can be a rewarding experience but the last few years have been gruelling with the pandemic and cost of living crisis bearing down on everyone.

“Our survey highlights widespread concern amongst Edinburgh’s self-catering sector, with a clear negative impact on mental health due to recent regulatory changes.

“What is causing particular anguish is the ominous threat that livelihoods will be snatched away due to heavy-handed government regulation, especially with the conflation of licensing and planning requirements.

“To compound matters, just as professional businesses have been shut down or are at threat of closure, we’ve seen a burgeoning black market of unlicensed accommodation, thereby undermining the entire purpose of the regulations.

“Well-managed short-term lets can easily coexist within communities while contributing meaningfully to local employment and the economy.

“As BiGGAR Economics have shown, STLs support over 5,500 jobs in Edinburgh alone yet are vastly outnumbered by the number of empty properties in the city. That is where the policy focus should be directed rather than scapegoating an industry for housing challenges.

“It has to be remembered that the very same individuals under the cosh have dedicated their working lives to ensuring the capital remains a welcoming and leading destination. Quite frankly, they deserve much better.”

Mental Health Infographic – EdinburghDownload