Business Cost Recovery ‘Essential’ to Edinburgh Visitor Levy Scheme – Scottish Business News

UKHospitality Scotland has urged City of Edinburgh councillors to adopt the cost recovery mechanism recommended in the draft visitor levy scheme.

In the draft scheme published ahead of the Policy and Sustainability Committee meeting on 22 August, it is recommended that 2.5% of proceeds collected by the levy is retained by the accommodation provider to recover its cost.

This was a key ask of UKHospitality Scotland and is essential to ensure the scheme doesn’t impede the ability of accommodation providers to invest, deliver economic growth and create jobs.

The draft scheme also recommends:

• Hospitality representation on the visitor levy forum through the Edinburgh Hotels Association, a member of UKHospitality Scotland.
• A levy of 5%, capped at a maximum of seven consecutive nights
• Half of funds raised to be spent on culture, heritage, events and destination management.

Responding, Leon Thompson, Executive Director of UKHospitality Scotland, said: “The ability for accommodation providers to recover their costs has been a key ask on behalf of our members and I’m pleased that City of Edinburgh Council officials have acted on this.

“Businesses ability to recoup 2.5% of proceeds will be an important way to deal with the additional burden this scheme will bring. Crucially, it will reduce the impact of the scheme on our sector’s ability to invest.

“I’m pleased that half of the funds raised will be spent across culture, heritage, events and destination management, but it must be spent in a way that will boost the visitor economy, keeping the city as a leading destination.

“It must not be used as a way to top up day-to-day council operations.

“UKHospitality Scotland has been clear about the negative impact this scheme could have on hospitality and tourism, if done wrong, and the inclusion of cost recovery, ringfencing and hospitality representation on the forum is a positive start. I hope the council takes forward these recommendations.”