Inverness Central Councillor Dr Michael Gregson has urged Highland Council to “listen to the Hospitality Sector,” in considering next steps following the Consultation period on the proposed Visitor Levy.
Following discussions with key stakeholders, Dr Gregson said:
“We have a Golden Goose.
“The Hospitality sector gives work to at least 20% of the Highland workforce – Tourism overall being around 43%, a large proportion being small and medium-sized enterprises.
“It enables people to stay in their own areas across the region, and brings somewhere over £1.5bn into the region.
“VisitScotland estimate 2.285 million nights were spent by tourists in the Highlands & Islands in 2023.
“This is a massive and key industry.
“We all want Sustainable Tourism – Highland Council, HIE, all sizes of business – and so we have to help sustain Tourism businesses.
“It’s excellent that 4,000 responses have come in, and a range of opinions expressed.
“But as the Consultation ends and analysis begins, it is emerging that there are concerns.
“We Councillors have been fortunate that so many people have been in touch, as well as having Engagement Forums led by several Chambers of Commerce, Visit Inverness Loch Ness, and other representative organisations.
“It’s inevitable that discussion will focus on areas like the size and form of the proposed levy, its administration and collection, the relationship with HMRC, possible exemptions – and other matters impinging on the viability of businesses.
“It’s also essential we recognise the context of VAT levels and thresholds, the rise in employers’ National Insurance contributions, the rise in the Minimum Wage to Living Wage, seasonality, and accommodation, recruitment and retention difficulties.
“This issue does not occur in a vacuum.
“Even if you accept the principle, that we need improved tourism infrastructure, including a push to meet the Highland Housing Challenge, this flawed and badly-designed Scheme looks more of a threat than a boost to the Highlands and Islands.
“Highland Council must ask the Scottish Government to think again, and above all, must listen to the Hospitality sector.”
