Ahead of a Glasgow City Administration Committee meeting this Thursday, in which councillors will decide whether to proceed with a consultation on introducing a Glasgow tourist tax, the Association of Scotland’s Self-Caterers has released a comment. The Association is the leading trade body for short-term lets in Scotland.
Fiona Campbell, CEO, said:
“Following the decision of Edinburgh Council to rush headlong into introducing a tourist tax, now is the time for other local authorities to take stock and tread carefully before considering their next steps.
With any consultation process, Glasgow City Council must listen to the voice of business who will ultimately be responsible for administering this scheme. Tourism is a growing part of Glasgow’s economy so we expect a full economic impact assessment to accompany the proposals. Overall, any levy must be set fairly, have good governance and thoughtful implementation at its heart, and monies raised for tourist infrastructure only. Failure to take these steps could result in a policy that erodes the very industry it is supposedly intended to support.
While tourist levies are common in other destinations, there are key differences. First, it is a tax on a tax: the 5% levy itself would be subject to 20% VAT, something unheard of in Europe. Other destinations have a reduced rate of VAT on tourism services, where Scotland does not.
Second, we need to be open about who will be paying. This is not an ‘international’ visitor levy paid only by foreign tourists with exemptions for residents, but one applicable to ordinary Scots staying overnight in Glasgow, those who have already made a financial contribution to local services. It will be a tax on those with overnight stays taking in a concert at the Hydro; it will be a tax on those staying in accommodation while visiting a relative in hospital; and it will be a tax on hardworking families on a staycation. And as with all taxes, the only way is up, especially when councils are starved of funds.
Some joined-up thinking is also required. Regressive short-term let licensing and planning policies are currently putting many small businesses in Glasgow at risk. If even more close, that will lower the amount that could be raised from any levy. As a dynamic and leading destination, Glasgow needs a wide variety of accommodation, especially with key events like the upcoming Commonwealth Games.
We understand the rationale behind a visitor levy but a badly implemented policy will do more harm than good. Our overriding message to councillors is simple: do it right, first time.”
