Council / Shetland should not be ‘disadvantaged financially’ after rejecting tourist tax, council leader says
THE COUNCIL’S political leader says Shetland should not be left behind financially as the Scottish Government revamps how it delivers a potential tourist tax.
Shetland Islands Council decided against adopting the overnight visitor levy earlier this year, with Emma Macdonald saying then that it “just isn’t the answer” for the isles.
Under new legislation in Scotland councils have the power to introduce a levy on overnight stays, based on a percentage of accommodation costs.
But Scottish Government announced earlier this week it would give councils greater flexibility on how they design and implement the so-called tourist tax.
New proposals will give councils the choice of setting a fixed amount instead.
Councils will also be given the option of setting different fixed amounts such as for different geographical locations, times of year or types of accommodation.
A bill on the change is set to be proposed in Holyrood early next year.
Macdonald said she was pleased that the Scottish Government had recognised that there needed to be more flexibility within the scheme.
However, she said the government needed to acknowledge that not every council – such as the SIC – would be bringing the visitor levy in.
“The research that was carried out earlier this year to consider if this was something we should implement clearly evidenced that it wasn’t suitable for Shetland,” Macdonald told Shetland News.
She added this was “due to a number of factors”, including the “impact on local tourism businesses who would have extra administrative burdens and also the cost versus the return.”
“I think it’s important that the Scottish Government ensure areas like ours that wouldn’t see a benefit from implementing a levy are not disadvantaged financially,” the council leader said.
“Income generating streams shouldn’t substitute core government funding.”
The Scottish Government is also consulting a cruise ship levy, with suggestions in Orkney that a £5 point of entry fee could be considered.
Local tour guide Laurie Goodlad told Shetland News last month that idea would be a “no brainer” if it goes towards supporting tourism infrastructure.
Investment would be particularly welcome in facilities for cruise ship tours, such as toilet provision and parking, she said.
However Lerwick Port Authority has raised “multiple concerns” to the Scottish Government about the idea of a cruise passenger levy.
Macdonald said the SIC had as yet not seen the results of that government consultation, but added they expected that in the new year.
Meanwhile Conservative Highlands and Islands MSP Jamie Halcro Johnston welcomed what he called a “u-turn” from the government.
“I have opposed the visitor levy from day one and continue to oppose its introduction by councils,” he said.
“It heaps more regulatory burdens and additional costs on local businesses at a time when the sector is facing real pressures, as well as taxing those traveling for work or even for medical appointments.
“However, it is clear that if these levies are going to be implemented locally then councils should have flexibility over how they operate in their areas.”
The government’s public finance minister Ivan McKee said: “The visitor levy empowers councils by giving them a new way to raise money for investment in tourist services and facilities.
“Our aim has been to give councils the flexibility to design a levy that works for their areas, while ensuring businesses can easily understand what it means for them.
“The act passed last year was an example of partnership working between the Scottish Government, local government and tourism businesses. Through regular discussions with our partners, it became clear that further flexibility would be welcomed.”
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