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Argyll and Bute’s proposed visitor levy provokes reaction from business owners

BUSINESS and tourism representatives have voiced their opinions to councillors on the proposed Argyll and Bute visitor levy.

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By Andrew Galloway, Local Democracy Reporter
Argyll and Bute
Argyll and Bute's proposed visitor levy provokes reaction from business owners

Representatives of Loch Lomond and The Trossachs National Park Authority, Highlands and Islands Enterprise, Argyll and Isles Tourism Co-operative and Visit Scotland took part in a meeting on Monday, September 15.

Councillors were urged to consider the long term implications of a decision on whether to introduce a five per cent visitor levy in the area.

Members of the short life working group called for the process to be paused as a result of feedback received in a public consultation. The next steps will be discussed at a full council meeting on Wednesday, September 24.

Ross Pollock, tourism business advisor with the park authority, said: “We absolutely respect the findings of this.

“Regarding a flat rate, this is something we are aware of other authorities having called for. It certainly would be a question for the Scottish Government to go back and revise the legislation as it stands at the moment.

“It is a serious concern for some small businesses, who have said they would seriously consider whether to continue to operate.

“I suppose we do have a slight concern on smaller communities who have quite a high impact from day visitors, who would put nothing into the levy pot in terms of overnight accommodation.”

Morag Goodfellow, area manager for Highlands and Islands Enterprise, said: “Businesses seem to be the most strongly opposed to the visitor levy, and that concurs with our understanding.

“Elasticity of demand is quite an interesting term, but more difficult to get the head around for a lay person. Argyll and Bute does have a really strong visitor economy and it is a key employer across the area.

“In considering whether to take forward this proposal, I think we need to be aware of the importance of the sector. The ensure it remains strong, and the product remains good, there will need to be levels of investment in the tourism economy.”

Cathy Craig, chief executive of Argyll and the Isles Tourism Co-operative, added: “The business community has answered robustly and expressed fears about the levy. There is a need to continue to invest and we need to be sensible.

“The Scottish Tourism Alliance reported last October that 45 per cent of businesses had three months or no cash reserves, and while some businesses are doing every well, some effects are being felt.

“We do have some challenges. The A83 will cause challenges and the ferries situation, until the new vessels come on board, remains very difficult.

“I would ask members to consider the potential unintended consequences of raising revenue in this way. Our members feel this is the wrong time and the wrong scheme to address the challenges we face.”

David Adams McGilp, regional director for Visit Scotland, added: “My colleagues have commented through the consultation and I have nothing to add to that.

“Whether this is introduced or not at this time, it is not only businesses or visitors who will be impacted. It will affect every resident of Argyll and Bute.

“We would urge members to consider the long term implications in either case.”