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Introduction of tourism tax will hit small hotels and B & Bs in Perth and Kinross, claims MSP

Alexander Stewart being sworn in as an MSP.
Alexander Stewart being sworn in as an MSP.

The introduction of a tourism tax will hit small hotels and guest houses in Perth and Kinross, critics have warned.

Alexander Stewart, Scottish Conservative MSP for Mid Scotland and Fife, said the idea of charging tourists and visitors between £1 and £2 per room each night for hotel accommodation was a “tax too far.”

The Shadow Minister for Local Government said the proposal would irreparably damage the hospitality sector in Perth and Kinross.

And he was backed by the Federation of Small Businesses (FSB) Scotland, which said the scheme would burden small hotels and B&Bs with administration costs they can ill afford.

First Minister Nicola Sturgeon has called for a consultation on giving local authorities the power to levy the charge after it was proposed by Edinburgh City Council.

Council bosses in the capital have claimed the move could generate an extra £11 million a year for local services to help them manage the impact of tourism on the city.

Supporters of a similar scheme in Perth and Kinross have suggested the money could be used to keep toilets open all year round, empty bins more regularly in tourism hot spots, and help to maintain a network of paths and cycle ways.

However, Mr Stewart said the local tourism economy was very different to that in Edinburgh and warned the hotel sector would be particularly badly hit if a tax comes into force.

“The economies in my regions, and specifically Perth and Kinross, rely heavily on its excellent hotels and licensed premises, so it is clear that this additional tax would be bad for our communities, bad for our businesses and bad for our valued visitors alike,” he said.

“Edinburgh will be able to cope with this tax, as it is busy all year round with tourists and visitors, but it’s a completely different story in Perth and Kinross.  Local businesses neither want nor need yet another tax such as this, along with the bureaucratic nightmare that it would demand.

“Businesses in Perth and Kinross need to survive outwith peak times – a further tax on visitors could easily discourage those who wish to visit as a spur of the moment decision for a short break during a local or municipal holiday.

“This is a tax too far and has the potential to irreparably damage the hotel sector.”

A spokesman for the FSB in Scotland said: “Polling found a consistent opposition to this tax among our members. Small hotels and B & Bs can’t cope with the additional administration burden involved with this.”

A spokesperson for the Scottish Government confirmed it was in the process of arranging a “national discussion” on the tourism tax.