Councils empowered to raise money for local tourism
A Bill to enable councils to invest more in local tourism facilities and services through a levy on overnight stays has been published.
If passed by the Scottish Parliament, the Visitor Levy (Scotland) Bill will give councils the power to apply a levy on stays in overnight accommodation based on a percentage of the accommodation cost.
All money raised would have to be reinvested locally on facilities and services substantially for or used by visitors, enhancing the tourist experience and benefitting local communities and their economies.
Under the plans, councils would be required to consult communities, businesses and tourism organisations before putting a visitor levy in place. They would also have to consult on how any revenue raised should be spent.
The proposals follow public consultation and form part of the New Deal for Local Government which gives councils greater financial flexibility and strengthens local democracy.
The Scottish Government has also invited representatives from the tourism industry, COSLA and other partners to join an expert group to consider how it could best be implemented if passed.
Public Finance Minister Tom Arthur said: “Scotland is already a very popular tourist destination and the domestic and international visitors we welcome every year have a significant and positive impact on the Scottish economy. Giving councils the power to introduce a visitor levy is one tool that will provide additional resources to continue to attract visitors to Scotland.
“Levies on visitors staying in paid-for accommodation are already used around the world and it is reasonable for local areas to want a small contribution from tourists to help support and sustain visitor economies.
“There have been significant contributions to the Bill so far from the tourism industry, COSLA and other partners and I look forward to continuing to work with them as it progresses through Parliament.”
COSLA Resources Spokesperson Councillor Katie Hagmann said: “COSLA welcomes the Scottish Government’s move to give councils the power to apply a visitor levy. This represents a key step towards reaching COSLA’s long-standing goal of a more empowered Scottish local government.
“COSLA has consistently called for the ability of councils to set and raise taxes based on what is needed and decided locally. By providing each local authority with the power to set a rate charged to visitors, and to do so independently of the Scottish Government, the Local Visitor Levy empowers local decision-making, with councils able to respond to the needs of their area and the people who live there.
“COSLA is well aware that Scotland’s councils and communities have a great diversity of needs – what works for one council will not necessarily be suitable for another. We welcome the flexibility offered by this legislation, and will consider if there are opportunities for it to go further. We are looking forward to seeing further investment both in tourism and our communities in the future.”
City council Leader Cammy Day has welcomed today’s publication of a Bill by the Scottish Parliament to empower councils to raise money through tourism.
If passed, the Visitor Levy (Scotland) Bill will give the City of Edinburgh Council the power to progress plans for a levy on stays in overnight accommodation, which it has been campaigning to see introduced for over five years.
The council has produced a substantial body of work to back its case for why a levy is the right move for Edinburgh, including a detailed consultation in 2018 which saw 85% of 2,500 respondents expressing strong support for its introduction. This figure included a majority of Edinburgh-based businesses and accommodation providers.
It was estimated then that a levy in Edinburgh could raise in the region of £15m per year to invest in sustainable tourism and managing the impact of tourism on the city. The Bill published today stipulates that levies must be based on a percentage of the accommodation cost, and spent of services substantially for or used by tourists.
Council Leader Cammy Day said: We’ve been building the case for Edinburgh to introduce such a levy for years so it’s great to finally see this Bill brought forward.
“We’re very proud that Edinburgh is one of the world’s most popular visitor destinations, but we’re equally aware that this success comes at a cost. That’s why we believe it’s right to ask visitors to make a small contribution to help us sustain and improve our tourism offer while managing its impact, and why we’ve been a key driver working with COSLA and the Scottish Government to see this legislation brought forward.
“A visitor levy is common practice in other major cities and destinations so why not here, in the place named ‘best city in the world’ to visit by Time Out magazine?
“From our citywide consultation held in 2018, our proposals gained overwhelming backing from Edinburgh’s residents, businesses and attractions – and, importantly, also from the majority of accommodation providers.
“Clearly, this model will need to be reviewed in line with the recommendations of the Bill so reshaping this with input from industry partners and communities is our next priority. It has been an extremely challenging period for our culture and hospitality industries so it’s more important than ever that we are fully committed to working together with them and other partners to co-produce a scheme that works best for the whole of our Capital city.”
EDINBURGH SNP POLITICIANS WELCOME INTRODUCTION OF TOURIST TAX LEGISLATION
Tommy Sheppard MP and SNP Council Group Leader, Adam McVey, have today welcomed the publication of a Bill which would give Edinburgh City Council the power to invest more in local tourism facilities and services through a levy on overnight stays.
Sheppard, whose Edinburgh East constituency encompasses some of the City’s most popular tourist attractions like Edinburgh Castle and the Royal Mile, has committed to work with the local tourism industry, City Councillors and MSP colleagues to “get the Bill over the line.”
If approved by the Scottish Parliament, the Visitor Levy (Scotland) Bill will grant councils the authority to impose a levy on overnight accommodation, calculated as a percentage of the accommodation cost.
All funds generated from this levy would be reinvested locally, primarily in facilities and services used by tourists. This reinvested aims to enhance the tourist experience and bring significant benefits to local communities and their economies.
Edinburgh City Council have announced its proposal to implement a nightly charge of £2 for the first week of a stay, to be added to the price of any room. It is estimated the scheme would bring in between £5 million and £35 million a year, depending on the final model agreed.
Commenting, Tommy Sheppard MP said: “It’s great to see the Scottish Government move forward with proposals to give councils the power to apply a visitor levy. It’s particularly welcome here in Edinburgh – a city which proudly welcomes over welcomes over 4 million visitors annually.
“This isn’t a question of fleecing tourists as some suggest, but a rather a matter of fairness. It cost money to keep our streets clean, well-lit, and safe. It costs to support our festivals, to keep our museums and public spaces world class.
“Residents pay for this through their council tax and yet many living outside the city centre don’t get a lot of benefit from it. It’s only fair that people who come here for a few days or weeks and take advantage of these facilities make a modest contribution too. That’s what this legislation will give Edinburgh City Council the power to do.
“I look forward to working with the local tourism industry, Edinburgh Councillors and my MSP colleagues to get this Bill over the line.”
SNP group leader Adam McVey, added: “Edinburgh has well-developed plans for a tourist tax, and I’m delighted this legislation has moved to the next stage to make these plans a reality.
“More than 90% of residents backed plans for this levy in the City when asked and the engagement from industry means the Edinburgh plan is well thought out and deliverable for businesses too.
“This has been a key ask of local government for the last 6 years and it’s fantastic that the SNP Government have responded so positively through this process to further empower Councils on this policy as well as progressing many others.”
BOYACK CONCERNED THAT VISITOR LEVY IS STILL YEARS AWAY
Following the introduction of a Visitor Levy (Scotland) Bill, Sarah Boyack MSP has written to the Minister for Community Wealth and Public Finance, Tom Arthur, to welcome the Bill but raise concerns that the powers for local authorities to implement a Levy could be years away.
In her letter, the Scottish Labour MSP said that “there are some key aspects of the proposed Bill that lack detail and will have an impact on local authorities like the City of Edinburgh that are ready to get on and introduce a Levy.”
Boyack referred to the Section 12 of the draft Bill which requires local authorities to carry out consultation prior to making a decision to implement a Scheme, raising questions about whether consultation already carried out by the City of Edinburgh Council would be accepted by Ministers to meet the requirements in the draft Bill.
It comes after the City of Edinburgh Council Leader, Cllr Cammy Day, raised concerns that having the power and implementing a Visitor Levy could still be two years away. Sarah Boyack is concerned that the draft Bill means that this is an underestimation.
Commenting, Sarah Boyack MSP said: “I welcome the introduction of this Bill, which will make a huge difference in public purse and will allow our councils to fund vital local services.
“A Visitor Levy Bill is long overdue.
“However, the lack of detail, particularly on timescales, in the draft legislation concerns me given that the warning from the City of Edinburgh Council that having the powers and implementing a Visitor Levy could be two years away is actually an underestimation of the time it will take to get a scheme up and running.
“Our Councils are severely underfunded. Introducing a Visitor Levy like other cities across Europe could raise approximately £15 million extra every year which would go towards funding local services.
“I am keen to ensure that there are no unnecessary hurdles for Edinburgh to implement a Visitor Levy and get the full benefits for local services as quickly as possible.”
In a recent Parliamentary Question on a Visitor Levy the Minister for Community Wealth and Public Finance agreed to meet with Sarah Boyack MSP and representative from Edinburgh City Council on the Government’s proposal. It is hoped that this meeting will take place within weeks.