STA’s Statement on Brexit

Industry collaboration key as UK moves towards leaving the EU

A statement from the Scottish Tourism Alliance following the results of the Brexit Referendum.

“The STA has remained neutral on the issue of whether or not the UK remains a member of the European Union.  As a member association, we acknowledge that the views of our members differ on this issue and it is therefore right that the STA has not expressed a view one way or the other in the lead up to the referendum.

However, we have publicised the concerns of the hospitality, leisure and transport industries which have been identified as being the most exposed to the negative economic consequences of a Brexit. We are disappointed that the UK has voted to leave the European Union, despite the overwhelming strength of feeling that Scotland has shown in its wish to remain.  The outcome will undoubtedly present additional challenges to the Scottish tourism industry when we already struggle to remain as competitive as the rest of the world as a destination.

One period of uncertainty is now over and we must now look ahead to collaborating with our industry partners and working with Scottish Government and Westminster to secure the best possible trading and economic environment to protect the future of what has been recognised as ‘the most important industry in Scotland’.

As the UK government begins the process of extricating the country from the European Union, we will receive further clarity on the unknowns which have caused significant concern for our tourism industry. We must retain our resilience, which our industry is known to do in all economically challenging and uncertain periods and look to working more collaboratively as an industry to build Scottish tourism’s future.

The STA has had many positive discussions with the Cabinet Secretary for Culture, Tourism and External Affairs over the last month and we look forward to further engagement with Scottish Government around how we can best deliver these quality, authentic, memorable experiences to all who visit Scotland, as we reflect and move on from this event.”

24th June 2016

The ASSC will continue to work closely with the STA and other partners to do all we can to support our members and the industry.

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Tourist Tax, Visitor Levy or Bed Tax

Tourist Tax, Visitor Levy or Bed Tax

Like most tourism businesses in Scotland the Association of Scotland’s Self- Caterers does not support a tourist tax, visitor levy or bed tax.

  • Scotland is already expensive to visit. The World Economic Forum ranks the UK 140th out of 141 counties in terms of tourism price-competitiveness.
  • Given that a tourist tax would make Scotland less competitive, it would be contrary to the National Tourism Strategy, working against efforts to increase visitor numbers and revenues. It would jeopardise the significant contribution that tourism makes to the Scottish economy through tourism-related employment and visitor spend.
  • A bed tax would penalise accommodation providers in a sector which benefits many other businesses, attractions, restaurants, pubs along with the cultural and events sector.
  • Recent analysis by the BHA shows that, of fourteen European countries, which apply some form of tourist tax, all but one levy reduced rates of VAT on hotel services. In fact, the UK is one of only three EU countries that do not have a reduced rate of VAT for tourism services.
  • The new Scottish Government has declared that there are no plans to implement any new taxes on the tourism sector, which it says is currently subject to the second highest VAT rates in Europe. It believes there are no existing legal powers for local authorities to levy a local bed tax or tourism tax.
  • The Scottish Tourism Alliance, British Hospitality Association and tourism members of the Federation of Small Businesses have also expressed their strong opposition to calls for tourist taxes.

The ASSC believes that this should be monitored closely.

  • There have been several calls to investigate the possible introduction of a tourist tax from politicians in the previous parliament, and certainly Councils, notably Edinburgh, have been looking at this as an option.
  • We believe that the 2017 budget will be an enormous challenge, particularly for Councils, increasing the pressure to raise income. There are Council elections in May 2017.
  • It may be possible for Councils to agree a legal mechanism in City Deal negotiations being agreed at Westminster and Holyrood.
  • The general public seem to understand and may well support a tourist tax. Many may have paid a small amount when on their own holidays to other destinations.
    The Government is coming under pressure to review local taxation as well as business rates, so we consider the position to be more fluid and in the balance than might appear.