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News & Press: General

New analysis shows tourist tax threatens regional jobs

29 November 2019   (0 Comments)
Posted by: Pernille Thomsen
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UKhosptality has today published analysis that demonstrates the economic and employment cost of a tourist tax in Scotland. The Scottish Government is currently consulting on the principles of a Transient Visitor Levy - also know more commonly as a tourist tax - that could be implemented by local authorities.

The analysis finds that if a tourist tax was introduced across the country it will lead to a hit to the Scottish economy of over £200 million and the loss of nearly 6,000 jobs. The pain would be felt all across Scotland, but the analysis shows the hardest-hit areas are Edinburgh, Glasgow and the Highlands.

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.”

 -ENDS-

Notes to editors

Area

Impact 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 Economics


About UKHospitality

  •  UKHospitality is the trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
  • UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
  • The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
  • For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
  • Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
  • The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
  • Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
  • Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined.

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