Perthshire Businesses seek ‘independent’ Tourist Tax probe

Business community question £8m forecast

Perthshire businesses have called on councillors to commission an independent economic analysis of what a Tourist Tax may bring the region, if it is to be introduced.

The statutory 12-week public consultation on a proposed £4-a-night Visitor levy closes next Wednesday (11th Nov) and the UK Government yesterday (4th Nov) announced new powers for Mayors to introduce regional levies in England.

However, the issue remains contentious within the Perthshire business community, with councillors meeting around 80 business owners at a summit meeting last week in Crieff.

Tourism businesses operating within price sensitive markets fear the additional levy will place their operations at risk of closure, with visitors already factoring in the rising cost of living for vacations and short stays.

Inflated

Furthermore, there is growing scepticism around the projected additional income which Perth and Kinross Council could receive from the tax, to invest in tourism-related services and infrastructure.

Figures released by the authority suggest a boost to local coffers in the region of £8.04m per annum, if the levy is approved at the proposed £4 level.

However, business representatives have privately told Perthshire Business News that they will be seeking an independent analysis of those figures, with many feeling the benefits have been inflated.

Extra burden

The quoted £8m figure was modelled from VisitScotland visitor data and did not include groups which would be exempt from the scheme.

The proposed ‘compensation’ to businesses for administering the scheme (2.5% of the fees levied) is also felt to be derisory, given the extra workload of uploading quarterly reports to a national portal, and the potential for the levy to push some businesses over the eligibility threshold for the payment of VAT.

The visitor economy is crucial to Perthshire, with the region at a critical juncture, as investigated by PBN in part 2 of its ‘State of the Perthshire Economy’ series

Proponents of the levy believe it will bring much-needed investment, with the local council wrestling with ever-growing social care bills and other regional priorities.

Should the council choose to introduce a levy, it will be preceded by an 18-month implementation period.

To complete the Visitor Levy consultation, visit.

To learn more about the Visitor Levy, visit.