Business group adds its voice to Highland concerns over tourism tax
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CONCERNS among the three chambers of commerce in the Highlands over the possible introduction of a tourist tax in the region have been echoed by a body representing more than 850 businesses in the centre of Inverness.
Inverness Business Improvement District (BID) declared that any such step would be unacceptable to companies in the Highland capital and could threaten their profitability.
The organisation was responding to Highland Council’s consultation on proposals for a transient visitor levy (TVL), which ended on Sunday,
Last week, in their joint submission to the council, the chambers of commerce for Inverness, Caithness and Lochaber – which together represent 820 firms – outlined their strong opposition to a tourist tax in the region, arguing it would be an unwelcome additional levy on the industry.
The local authority believes the measure could raise between £5 million and £10m annually, and supporters argue this money could be spent addressing the impact of tourism.
Writing on behalf of the Inverness BID directors and members, manager Mike Smith said that, like other areas in the region, city centre businesses have become more dependent on visitors, and there are concerns that the imposition of a tourist tax would threaten the competitiveness of the region compared with other parts of Scotland.
Of particular importance in this regard, he said, is the way that nearby Aberdeen and the wider Aberdeenshire areas are developing their tourism sector. Mr Smith also pointed to Amsterdam, where two cruise companies cancelled all visits to the city after the introduction of TVL in January, warning that a similar move in this area would cost the Highlands £230,000 in tourism spend each year.
He also raised fears that the new tax could generate negative publicity for the area, and spoke of concerns that there was no mechanism for ensuring the money raised would be used for tourism purposes.
Mr Smith said: “It is the view of the BID board of directors that any proposal to implement TVL would be counter-productive and unacceptable to the majority of city centre businesses.”
As previously reported, the chambers’ letter – signed by chief executives Stewart Nicol (Inverness), Trudy Morris (Caithness) and Frazer Coupland (Lochaber) – will also be passed to the Scottish Government, which is taking submissions on the topic until December 2.
The government has committed to consult on, and introduce, legislation to give councils the power to apply the TVL. This will enable local authorities to introduce the levy if they consider it right in their local circumstances.
Highland Council says the levy is one option it is considering as a way of raising income to manage the impact of tourism and help it invest in the industry.
