Letter to the First Minister

Today, the following letter was sent to the First Minister:

20th December 2021

Dear First Minister,

THE SCOTTISH GOVERNMENT’S SHORT-TERM LET LICENSING SCHEME

These are challenging times for our country – for individuals, families, society, and the economy. As you appreciate, the Scottish tourism sector has been particularly badly affected by the pandemic. In recent days, the tourism accommodation sector has experienced widespread cancellations as a consequence of government announcements. Our industry has done all we can to support the Scottish Government throughout the pandemic – but so many of our businesses are now in survival mode.

While there will always be circumstances beyond the government’s control, there are options we can take – working collaboratively in this endeavour – which can ease the burden for those under pressure. Changing short-term let regulation can and will make a major and lasting difference to thousands of legitimate small and micro businesses throughout Scotland.

That is why we collectively welcomed the withdrawal of the Scottish Government’s short-term let licensing regulations in February 2021 as they were widely recognised as not fit for purpose. Sadly, the revised regulations remain unfit for purpose in December 2021 and come at the worst possible time. Even in the pre-Covid trading environment, a licensing scheme along the lines envisaged would pose major difficulties. But given the ongoing impact of the pandemic, with Scotland facing “a tsunami” of omicron cases as you note, this will be devastating for so many longstanding, diligent and professional businesses operating on small profit margins.

Right now, businesses offering short-term lets are facing a perfect storm: first, the looming imposition of licensing at a national level; second, the possibility of planning control areas at a local level; and third, the spectre of additional Covid-19 uncertainty and restrictions. To compound matters, the recent Draft Budget made reference to the resumption of work on a visitor levy. Those who have been treading water now fear being totally submerged.

Make no mistake, this onerous and costly licensing scheme will cause many traditional self-caterers and B&B operators to leave the sector – hitting the supply chain and local economies in the process – and reducing the diversity of accommodation available and Scotland’s capacity to welcome visitors to our country.

But it doesn’t have to be this way. There is a cross-industry backed, viable and legally sound alternative regulatory proposal for mandatory registration, devised by the Association of Scotland’s Self-Caterers and endorsed by VisitScotland, which can meet the government’s policy objectives in a more cost-effective and proportionate manner. Just to re-emphasise, industry is not averse to regulation; we simply question the timing and specific nature of your proposals. We want to work with the Scottish Government to get this right to protect jobs and livelihoods at this critical time.

This is an issue of significant importance to our industry and members operating businesses the length and breath of our country. We earnestly hope you share our commitment to helping Scottish tourism’s recovery from the pandemic and therefore urge you to listen to the united voice of small business and reassess this damaging licensing system without delay.

Yours sincerely,

Association of Scotland’s Self-Caterers: Fiona Campbell, Chief Executive

Professional Association of Self-Caterers UK: Alistair Handyside, Chairman

Scottish AgriTourism: Caroline Millar, Sector Lead

Scotland’s Best B&Bs: Gordon Bulloch

Scottish Bed & Breakfast Association: David Weston, Chairman

Scottish Land & Estates: Simon Ovenden, Policy Officer

 

ASSC’s Rebuttal of Evidence Provided by Witnesses on 14th December 2021

The opinions provided on 14th December to the Local Government, Housing and Planning Committee – for that is all they were; certainly not evidence – were extremely shocking both in terms of tone and content. The blatant hostility and antipathy levelled at small tourism accommodation providers was astonishing to behold. The self-confessed lack of evidence from supporters of the legislation provides nothing to back up their position, and yet is being given equal weight to the hard data and evidence provided by industry.

The Association of Scotland’s Self Caterers (ASSC) has received numerous comments from members across Scotland expressing their shock at the vitriol expressed by the witnesses towards small tourism accommodation owners. These are micro businesses caught up in the perfect storm of the damaging economic impact of COVID, in an already fragile rural economy – and now impacted by regulations whose aim has been expressly stated as being to ‘manage [them] down’; or, in other words, to put them out of business.

Due to the level of unsubstantiated claims, generalisations and misrepresentations of our sector, the ASSC were compelled to provide a rebuttal so that the Committee have a full appreciation of the facts.

Further to its consultation responses, as well as written evidence to the LGHP Committee, the  ASSC has provided evidence that short-term let licensing legislation will detrimentally effect thousands of operators, whether self-caterers or indeed home sharers, for no measurable benefit.

Our key concerns about the evidence provided by witnesses covers seven themes:

  1. Lack of understanding of sector
  2. Economic Impact
  3. Lack of data
  4. Impact on Local Authorities
  5. Anti-social Behaviour
  6. Housing
  7. ASSC’s Registration and Exemption Proposal

Summary of Concerns

  • There is a general consensus from witnesses that the vast majority of operators are professional and compliant, yet there is also an assumption that operators are “unscrupulous”, “poorly regulated or poorly managed”. These contradictory positions cannot hold.
  • ASSC members, many of whom have been operating for decades, refute the allegation that the sector is the “Wild West” and at they are “unscrupulous”.
  • The accusation of drug dealing, sex trafficking and puppy farming is offensive and unsubstantiated.
  • The value of the sector has been undermined and witnesses suggest that is provides no value to the Scottish economy or local communities – our businesses will seemingly not be missed.
  • Witnesses evidenced a lack of understanding of the traditional accommodation sector or short-term lets, with repeated discussion regarding one online platform as being ‘the industry’.
  • Witnesses evidenced a lack of understanding of existing regulations – in relation to anti-social behaviour and health and safety, as well as evidencing confusion of what it is the legislation is attempting to address
  • There is no evidence or data of the impact of short-term lets on housing
  • There is no evidence whatsoever to underpin a “reason of general interest”, which is legally required when introducing licensing legislation
  • Discussion regarding global corporations and large businesses does not reflect ASSC or Scottish Bed & Breakfast (SBBA) membership – they are micro businesses that have been part of communities for decades
  • Contrary to assertions from the panel that industry has fought against regulation, the ASSC proposed registration, transparency and health and safety compliance in 2017
  • Witnesses confirmed that the legislation will prove challenging to local authorities
  • Only one local authority perspective (Edinburgh, a longstanding supporter of licensing) has been provided as oral evidence, while the Committee’s survey results and consultation responses show considerable concern from other local councils about the impact of licensing.
  • Toxic comments from witnesses looking at cases in isolation have caused deep concern from professional legitimate businesses across Scotland

Read the Rebuttle in Full Here:

Rebuttal of Evidence Provided by Witnesses on 14th December 2021

Cancellations for Larger Properties in Light of Restrictions

The Scottish Government has issued advice regarding reducing the number of household contacts to no more than three.

The result has been a slew of cancellations and requests for advice on where this leaves operators in terms of refunds.

The ASSC has taken legal advice and it seems it is really a matter for each operator. From a purely legalistic point of view,  the operator can maintain their terms and conditions as long as these are clear.

If you hold a deposit when a guest cancels, the worry is that they simply will not return and you will have lost the good will of that guest.  It may be prudent to move the deposit to an alternative time if at all possible.