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Tourist tax threatens regional jobs


A new analysis has revealed that tourist tax is threatening regional jobs throughout Scotland.

UKHospitality has published analysis that shows both the economic and employment costs of tourist tax in Scotland.

The Scottish Government is consulting upon the factors in the Transient Visitor Levy, more commonly known as tourist tax. This is a tax which is allowed to be implemented by local authorities.

The analysis has found that if tourist tax was rolled out across the country, it would have a negative effect on the economy and jobs. The pain would incur a cost of over 200 million pounds to the economy and the loss of around 6,000 jobs. Furthermore, it would majorly affect Edinburgh, Glasgow and the Highlands.

The tax would further increase the costs of domestic tourism for Scots, and would deter tourists from visiting.

The tax will also increase the costs of domestic tourism for Scots and deter visitors from overseas.

Kate Nicholls, CEO of UKHospitality, said: “This ill-thought through proposal will damage Scotland’s reputation as a world-class tourism destination, increase costs for Scottish people and lead to a loss of jobs and investment at a critical time for the sector.

The hospitality sector is already over-taxed, with sky-high business rates and one of the highest VAT rates in Europe. A new tax will put businesses, the vast majority which are SMEs, under even greater risk. It is time that this proposal was shelved and for the Scottish Government to discuss with business how we can secure a bright and sustainable future for Scottish business.”

AreaImpact on economy (£m)Impact on jobs
Angus & Dundee -3.2-89
Argyll, Loch Lomond, Stirling and Trossachs-15.5-438
Ayrshire & Arran -6.5-185
Dumfries & Galloway -4.2-118
Grampian (incl. Aberdeen) -12.4-352
Greater Glasgow & Clyde Valley -20.2-574
Highlands & Islands -33.5-949
Kingdom of Fife -7.8-220
Edinburgh and wider Lothian-94.0-2,664
Perthshire -5.9-166
Scottish Borders -1.6-45
Scotland -205.0-5,801

Source: Ignite Hospitality


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