Plans for Argyll and Bute to introduce visitor levy to help fund public services

Local business owners have branded plans for a visitor levy in one of Scotland’s most popular tourism destinations as “short-sighted“.

Argyll and Bute’s natural beauty and breathtaking landscapes are so popular it attracts 30 times its population in tourists each year.

Visitors come from across the country, but also America, China, India and beyond for a slice of Scottish history.

The council has become the latest to want to tap into the market and introduce a visitor levy, which it says will help fund investment in public services at a time when budgets are stretched.

However, those in the industry feel it’s a new burden they and their guests cannot afford to bear.

“If you end up having to stay in accommodation for any reason whatsoever you will need to pay this tax. So, it’s an accommodation tax – not a visitor tax, not a tourist tax,” says Stephanie Burgon, who runs the 16th-century Kilmartin Castle.

Hotel manager Christopher Clark STV News

“It’s short-sighted. I think it will deter growth, drive down visitor numbers, it will make running a small business incredibly hard.

“It makes us one of the highest-priced accommodations in the whole of Europe tax-wise, and I don’t think it takes scientists to work out how that is going to go.”

The proposed 5% levy would be applied to each room booked each night.

This means a £100 stay would cost £105, making a five-night stay an extra £25 per room.

An additional 20% VAT would also be charged on the levy.

Anyone taking overnight accommodation, including people who live in Argyll and Bute or travelling for work, would be required to pay the tax.

Christopher Clark owns The George at Inveraray.

He said: “I’m forecasting that our numbers will dwindle because people will go to other areas or be priced out of what is already a very expensive product that isn’t through our doing.

“It’s unnecessary because businesses need support. I don’t see who benefits from this. I don’t understand the thought process.”

These are concerns that stretch from the hotel industry to the whole of hospitality in the area.

Natasha Myles owns Ocho in Inveraray. STV News

Restaurants, bars, cafés and visitor attractions have a symbiotic relationship with accommodation providers.

They fear that fewer visitors mean fewer paying customers.

“I rely very heavily on guests saying for three or four nights in hotels where they will come and visit us, or they’re out and about buying coffee and they pop in for lunch,” says Natasha Myles, who owns Ocho in Inveraray.

“We don’t have many day trippers during the mid-week, so we rely heavily on the local businesses being full.”

Argyll and Bute Council say the proposals could raise an estimated £9m to maintain public services.

They add that any levy wouldn’t come into force until 2027 – and evidence from cities with a tax show no change in visitor numbers.

A public consultation on the plans runs until April.