Highland tourist tax could be introduced as early as 2021 after council backs proposals
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Highland Council has voted to explore the idea of a “tourist tax” in greater detail.
Councillors backed proposals for the tax, also known as a Transient Visitor Levy (TVL), following a public consultation exercise that sought the views of businesses, residents and visitors.
At Highland Council's last full meeting of the year Councillor Andrew Jarvie proposed an amendment calling on the authority to refuse to back the tax at this stage, but was defeated.
He argued: “We cannot afford to kill our golden goose, just three years ago we had streets littered with vacant shops which are now full.
“This paper found no research which indicated there was no negative revenue impacts of tourist tax. Other research identifies a four to 16 per cent decrease in local spending depending upon the nationality of the tourist.
“Other countries, whilst still having a negative impact, still have incentives to the sector specifically in the form of lower VAT, rebates and tax liability reductions for renovations.”
However, the council chamber was not convinced and voted to approve the measure by 44 votes to eight, with three abstentions.
Cllr Ron MacWilliam believes it is important that whatever the income raised it must be ring-fenced for infrastructure improvements.
“The transient visitor levy will make it easier for the council to maintain the infrastructure our tourist sector puts so much pressure on,” he said.
“What has to happen however is that the extra income is not lost to Highland Council’s financial black hole.
“It must be earmarked for the roads, public toilets and other environmental improvements and maintenance that directly support the industry.”
The Scottish Tourism Alliance (STA) said in a statement: “The STA is disappointed but not surprised that Highland Council has voted to explore the idea of a tourist tax in more detail and start drawing up plans for what the implementation might look like, given the variations in support for the tax in its consultation.
“The evidence gleaned by the Council in its consultation exercise accounts for only a small percentage of businesses who have come out in two recent surveys conducted by our colleagues at the Federation of Small Businesses as being overwhelmingly against the proposal of a tourist tax on the basis of this being damaging to businesses and local economies.”
