TWENTY one Argyll and Bute councillors voted to delay a decision on introducing a visitor levy scheme for the region, until the end of January next year, despite two attempts to scrap the charge completely.
The vote came after a debate on the issue at a full council meeting at Kilmory.
A visitor levy is a small tourist tax added to the cost of an overnight stay, (hotel, B&B, campsite), paid by visitors and collected by the accommodation to help fund local services.
At the meeting a majority of local councillors voted for an amendment by depute joint leader, councillor Ross Moreland,(Liberal Democrat), to delay a potential introduction of the levy. Two amendments which would have seen the process ended altogether were voted down.
Councillors also agreed that leader, Jim Lynch, will now seek clarity from the Scottish Government on possible changes to the visitor levy legislation, and will also write to the UK Government about concerns over how the levy might interact with VAT thresholds for small businesses.
The latest development follows a 12-week consultation, (December–March), on a draft scheme based on a five per cent all-year levy with only the national statutory exemptions. The council gathered 3,352 responses, plus input from four webinars and ten drop-ins.
The consultation findings showed that 57 per cent of survey respondents did not support a visitor levy, 52 per cent said if there was a levy there should be a cap on the number of accommodation nights that it should be paid and 59 per cent did not agree with the councils proposed position on local exemptions as set out in the national legislation.
Council Leader, Councillor Jim Lynch, said: “Thank you to everyone who gave us their views in the visitor levy consultation. We received a huge amount of information and a lot of understanding behind the views that people have. We have fully considered the consultation findings and taken the feedback into account.
“Given that the public have concerns and there is potential for legislative change, we have taken the decision to put the possible introduction of a visitor levy on hold.
“Local authorities in Scotland are facing huge financial pressures and Argyll and Bute is no exception. We therefore need to be realistic that in the absence of additional revenue from a visitor levy, the council may have no other choice but to make difficult budgetary decisions many of which could affect essential services that currently support the quality of life for residents and enhance the experience of visitors.”
Several Scottish councils have introduced or are weighing up levies to fund tourism services. Argyll and Bute will bring back an updated proposal once ministers confirm whether single flat-rate or tiered models can be used.
Fiona Campbell MBE, CEO of the Association of Scotlands Self-Caterers, said: “Argyll and Bute Councils decision to pause work on introducing a tourist tax is an evidence-based and considered approach, demonstrating the Council was genuinely listening to those most impacted by their proposals. They can now properly evaluate the implications of a levy and ensure any future approach is aligned with both local priorities and national policy direction. Crucially, this pause also creates space for other charging models to emerge as part of the Scottish Governments commitment to consider such methodologies.”
Fiona added: “The Council joins a growing number of local authorities taking time to reassess their plans in light of ongoing stakeholder discussions and potential Scottish Government changes. We would encourage others to follow this sensible lead. Indeed, theres already a growing momentum as Shetland, Orkney, Western Isles and South Ayrshire have already done so, showing the current percentage-only charging policy lies in tatters, showing the need for a bold and fundamental rethink.
“We are wholly supportive of Ministerial efforts to bring about a workable and fair system and expect that more councils will take similarly pragmatic steps in the weeks ahead. We desperately want to make this policy work ensuring it doesnt undermine the very sector it seeks to support making Scotland a world-leader in sustainable tourism. To do this will require a radical overhaul to make it fit for purpose given the swelling opposition from councils and businesses throughout Scotland.”
