As Edinburgh prepares to implement its controversial visitor levy, UKHospitality Scotland has responded to the city’s revised proposal, expressing concerns while welcoming some key revisions.
Visitor Levy Proposal: Concerns Over Impact on Businesses
The proposal for a 5% levy on eligible bookings in Edinburgh has been met with mixed reactions from the hospitality sector. Leon Thompson, Executive Director of UKHospitality Scotland, emphasized that while the levy could be acceptable, it is crucial that its costs are kept to a minimum. The hospitality body has long advocated for businesses to be able to recover some of the costs associated with collecting the levy, and the inclusion of a cost recovery mechanism in the revised proposal has been seen as a positive step forward.
“It’s crucial that the Visitor Levy was not raised above the proposed rate of 5%, and it’s positive that the Council has listened to strong feedback from hospitality businesses on this point,” Thompson said. “Retaining a mechanism for business cost recovery, as called for by UKHospitality Scotland, was essential and I’m pleased that this remains within the revised scheme.”
A Tight Timeline for Businesses
Thompson also raised concerns about the rapid timeline for implementation. The proposed levy would apply to eligible bookings starting in May 2025, giving businesses just over three months to adjust to the new system. For many hospitality operators, this is a tight turnaround that will require significant changes to systems and processes.
“The proposal to apply the levy to eligible bookings from May this year is a quick turnaround for businesses, who will have to implement new systems and ways of working in just over three months,” Thompson noted. “To make this achievable, the Council will have to work at pace to urgently provide clear and detailed guidance for businesses tasked with collecting levy funds.”
Call for a Balanced Approach
Ahead of the Council’s vote on the proposal later this month, UKHospitality Scotland is urging councillors to consider the potential negative impact of the levy on both businesses and visitors. The trade body has emphasized the importance of keeping the levy rate low and ensuring that it does not become a punitive burden on the hospitality sector.
“I would urge councillors to understand that the rate cannot be punitive and to be mindful of the impact any additional costs will have on businesses and visitors,” Thompson concluded.
Looking Ahead
The debate over Edinburgh’s visitor levy is far from over, with the city’s council set to vote on the proposal later this month. Hospitality businesses in Edinburgh are bracing for changes, hoping for clear guidance and a reasonable implementation process. UKHospitality Scotland will continue to monitor the situation closely, advocating for the interests of its members and the wider hospitality sector.
