Tourist bed tax ‘doesn’t make sense’ for beleaguered sector, says Fiona Hyslop

Written by Tom Freeman on 17 June 2016 in News

Exclusive: Culture and tourism secretary Fiona Hyslop gives the clearest hint yet the Scottish Government does not support tax on visitors

Edinburgh Festival fireworks, by Michal Ziembicki​

Fiona Hyslop has given the clearest indication yet that the Scottish Government is not keen on a tax on tourism for local authorities.

A tourist or bed tax had been raised by politicians from across the spectrum before the Holyrood election to raise money for local infrastructure, with cultural organisations and City of Edinburgh Council thought to be keen.

Supporters said it could plug shortfalls in council budgets, with Edinburgh potentially raising up to an extra £10m a year by charging a £1 a night bad tax.


Nearly a million tourists visit Scotland to hear live music

Domestic tourism spend in Scotland on the rise

Scottish theatre companies launch new schools initiative

However the Federation of Small Businesses in Scotland and the Scottish Tourism Alliance have lobbied against the move, calling a “regressive tax on visitors”.

In an exclusive interview with Holyrood, the Culture, External Affairs and Tourism Secretary Fiona Hyslop said the imposition of VAT on the sector from the UK Government meant the sector needed “smarter” alternatives.

“Scotland has the second highest VAT payable for the tourism industry. In that context, trying to put extra taxation on them doesn’t make sense,” she said.

“I agree with the cultural sector we need more investment to help support the infrastructure in our cities, of course we do, but there are smart ways of doing it.

“That’s what I want to do as part of my brief, to look at smart ways of getting investment we need, but do it in a way which doesn’t hammer the tourism industry.”

The full interview with Fiona Hyslop will feature in Monday’s edition of Holyrood magazine.



Related Articles

Changing the culture: Glasgow and the west of Scotland since devolution
10 June 2019

The west of Scotland is changing significantly through culture and regeneration, but some of the old problems still remain

The High Road: The Highlands since devolution
17 April 2019

Separated from the seats of power by more than just mere geography, what has devolution done for the Highlands to close the gap?

Council consultation reveals clear support for tourist tax in Edinburgh
9 January 2019

Figures show 85 per cent of respondents to the council consultation on a transient visitor levy support the scheme

Share this page