Visitor Levy

Hi,

We are emailing as part of the consultation process with regard to Highland Council’s proposal to implement the Visitor Levy. We should say at the outset that we are not necessarily opposed to a visitor levy, rather just the present legislation and its proposed implementation.

We should say that we are members of the committee for Visit Waternish, a marketing group in the North West of Skye. Our marketing group has been in existence for over twenty years, having initially been funded by a grant from Visit Scotland. Whilst we are a marketing group for a small area, we nonetheless have been able to benefit our members thus allowing us to be self supporting for now nearly two decades.

1. It is our understanding that the legislation requires that any levy should be a percentage and that Highland Council is proposing a minimum of 5per cent.

• This would seem to go against the vast majority of other schemes across the world;
• Be administratively quite complicated and time consuming;
•  It is ridiculous for the visitor that potentially every council area could have a different tariff, for example Aberdeen city is already looking at 7per cent;
• Wales are viewing a per person per night charge of £1.25 whilst England has said it will not be doing it at all – will this not have a harmful effect for potential visitors to Scotland?
• Ultimately there will be a serious decrease in competitiveness.
• It is a significant concern that implementation of the levy to the

2. It is a significant concern that implementation of the levy to the visitor is

• the responsibility of the business.
• That the levy is deemed to be ‘income’ for the business.
• That this ‘increased income’ could put more businesses into the VAT threshold
• That a conversation with HMRC with regard to the levy had not happened earlier in the process.
• The vast majority of visitors staying in accommodation pay their bills (including the levy) by credit card, which to the accommodation provider incur the payment of interest for the use of the system. Yet the payment of the levy to HC has to be the full amount. So the accommodation provider is out of pocket yet again.
• Of course the answer for some businesses to remain below the threshold might be to reduce their season or indeed to shut if their reduced season is no longer viable. At the very least they may reduce the financial development of their business. This has serious implications for local economies!

3. It is our understanding that no Business Impact Study has been undertaken. Rather information has been gained about the experiences of imposition in other places However comparisons have been done with other cities and places with higher populations. Nothing compares to Highland Region and the effects on the hospitality economy and indeed the wider economy, which heavily relies on the hospitality sector.

4. It is our understanding that the levy will be paid by anyone staying in hospitality accommodation. This would include Highland Council residents having to stay away from home, such as for hospital appointments, even though they are already paying Council Tax. It would also be paid by trades people working at a distance thus putting up costs for Highland Council residents.

5. It is our understanding that the levy will be paid by camper vans which use camp sites. Those that park in lay byes will not. Surely this will incite more of the latter, adding to the problems on our narrow roads and environments.

6. The hospitality sector has had to endure many national situations in the last number of years – Brexit, Covid, Short Term Lets Licensing, significant energy increases and prices in general, all of which has forced us to raise our prices or to leave the hospitality sector. This is another proposal which would see pricing increase yet again.

7. Tourism and the hospitality sector are absolutely vital to the whole economy of the Highlands and is so inter-linked with other sectors. Trades people, the retail sector and food outlets are so heavily dependent on the Hospitality Sector. The Visitor Levy in its present form will potentially have a very negative impact on the total economy of the Highlands. There is no alternatives to bolster the economy. We will be returned to life as it was 100 years ago!

8. The Highland Council has produced a ‘consultation’ which is heavily skewed to meet the agenda of Highland Council. There has been an advertising campaign to ask for input. Yet this is9. 10. purely focused on the positives of the levy with nothing about the negatives that exist for everyone in Highland Region.

9. There appears to be no cap on the prospective levy , thus leading to the possibility of increases in the levy in future years and continuing the problems already highlighted.

10. There would appear to be little information about the use of the funds for the levy. We would definitely emphasise the need for monies raised in Skye and Lochalsh to remain here and not used elsewhere or to fund shortfalls in spending usually raised from the council tax.

It would seem to us that the Visitor Levy is fundamentally flawed and not fit for purpose. We would ask Highland Council at the very least to halt the present process, and give more time to undertake a Business Impact Assessment and gain further information about the potential effects on the Region and the local communities. We would though suggest that Highland Council should in fact refer the matter back to the Scottish Government for review.

Thanks for giving your attention to this matter.

Yours sincerely,

Kayti Peschke – chair,

Judith Hodgkin – treasurer.

Donnie Montgomery.

Teresa McGhie – secretary.