Scotland is preparing to bring in a tourist tax, a move that is considered “common” across the world, an expert says.
The bill that would introduce the tax passed its first hurdle last week. A committee voted at Holyrood voted in favour of allowing councils the option of imposing a visitor levy.
The move has however been met with some opposition. Scottish Tories believe the tax would hit the hospitality sector
A marketing expert though says the levy is not just popular among European nations, but is something that is frequently seen around the world. Professor Sameer Hosany, of Royal Holloway, University of London, who specialises in research on tourists as consumers told The National: “I think sometimes tourists wouldn’t really see much in terms of what they are paying, as it can be very minimal
“The Institute of Fiscal Studies has estimated that a charge of £1 per person is going to raise around £420 million in England alone. So you think about it, it is just £1 and quite often, tourists would not even notice it.”
Prof Hosany does however say tourists can end up with an unexpectedly high bill as the tax can add up. He highligted a trip to the USA, where he said he felt “a bit annoyed” when the charges were added if not communicated upfront.
How does the tourist tax work in Europe?
Prof Hosany says the way a tourist tax works varies. Some are based on a flat rate per visitor while others issue a charge based on a percetage of a room or apartment.
Rome introduced the tourist tax in 2011 based on accommodation type. The rate almost doubled in 2014 following a review, it works out from around €4 foor a one-star hotel to €10 for a five-star.
It reportedly raised around €123 million in 2016. Barcelona in Spain also introduced a tourist tax in 2012.
Depending on the type of accomodation it can range from €3.75 to €6.25. It is thought it would bring in around €53m in 2023 and as much as €100m in 2024.
Amsterdam has the highest tax in Europe for visitors and the fourth largest in the world. Sitting at 12.5%, it will see toursts paying €21.80 per night with an average room rate of €175.
In Scotland the tax will apply to those staying in hotels, hostels, bed and breakfasts, self-catering accommodation, campsites and caravan parks. The Scottish Government wil lconsider calls for a flat-rate fee.
Edinburgh Council says it would introduce the charge. It estimates it could bring in around £15 million a year.
Manchester has already introduced a sort of tourist tax. The City Visitor Charge sees £1 added at hotels and serviced apartments with a rateable value of £75,000 in some “districts”.
A spokesperson for Manchester Accommodation Business Improvement District (BID), said it was aimed at “delivering better visitor experiences and additional activity to drive more staying visitors”.
They said: “In terms of reaction, public sentiment has been neutral; possibly owing to the fact that these sorts of charges are now fairly common when travelling.”
