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Taxation
Europe’s most
expensive city?
The bed tax debate rages on in Edinburgh, where conflicting interests
and budget cuts have left the city in a complex political situation.
Stuart Wood investigates
he bed tax keeps popping
up around the UK, like
whack-a-mole,” says
UKHospitality CEO Kate
Nicholls. “Every time it gets thrown
out in one council, it reappears
somewhere else – halfway across
the country.”
Nicholls was speaking at the
Master Innholders Conference, a
gathering of the general managers of
the UK’s top hotels. And the bed tax,
second only to Brexit, is high on the
agenda for everyone in the room.
The bed tax, or Transient Visitor
Levy (TVL), would be an added
charge of perhaps £1 or £2 per
night, paid by hotel visitors on top of
their existing room fee. It is designed
to provide funding for destinations
and convention bureaux across the
UK to market themselves.
Since CN reported on the issue in
our December cover feature, it has
come to the fore in Edinburgh.
The City of Edinburgh council
released the results from a
consultation on the TVL in January,
where it asked residents, visitors and
businesses to offer their opinions. It
found that 90% of residents who
responded were supportive of the
tax, while 51% of Edinburgh's
accommodation providers were in
support.
That second figure is perhaps
most indicative of where the debate
currently finds itself. Those within the
hospitality and events industries are
split down the middle, with some
strong opinions held on both sides of
the fence.
Nicholls and UKHospitality argue
that an extra fee, on top of the UK’s
already high levels of tax and VAT,
would negatively impact
business. “Unnecessary
regulations,” she said, “would
be damaging to future
growth.”
Furthermore, Nicholls
announced to the room at the
Master Innholders Conference that
UKHospitality had received a public
commitment from tourism minister
Michael Ellis, who said he would not
be giving councils the authority to
implement a tourism tax.
Ellis does not have sway over the
Scottish government, however, which
will come to an independent decision
regarding TVL. It is currently in the
process of drafting legislation, which
is informed by the recent evidence
collected from its consultation on the
issue.
If legislation does go through, it
could give Scottish councils
individual autonomy to decide
whether or not a tourist tax will be
implemented in their region.
www.conference-news.co.uk
A case for?
However, there is vocal support for
the tax in Scotland. Among the most
prominent supporters of TVL is
Marketing Edinburgh, an
organisation dedicated to promoting
Edinburgh to the wider world.
Writing in The Scotsman, John
Donnelly, Marketing Edinburgh’s
chief executive, said: “Our growing
tourism appeal is set against a need
to support the council in managing
the consequences of that success.
“More people coming to the city is
brilliant news for our economy – but
it puts increased pressure on our
ability to service them.
“So, how can we secure
sustainable investment to maintain
our position as one of the world’s
best destinations, without
compromising the city experience for