ASSC argues latest Scottish Government STL licensing stats ignores damaging real-world consequences and measures bureaucracy, not policy outcomes
The Association of Scotland’s Self-Caterers (ASSC) has responded to the Scottish Government’s latest short-term let licensing statistics, arguing that the figures fail to capture the damaging, real-world consequences of a heavy-handed regulatory regime on small tourism businesses and the local economies they support.
While the published data focuses on application volumes, processing rates and licence approvals, the ASSC contends that it offers only a narrow administrative snapshot. Moreover, the figures do not demonstrate whether the licensing scheme has delivered tangible public benefits, particularly in relation to housing outcomes such as improved affordability or increased supply. This calls into question the reliance of the government on licensing statistics as evidence of policy success.
The leading trade body said the data also fails to reflect the cumulative strain on the sector, pointing to widespread business closures, declining investment confidence, rising compliance costs, prolonged uncertainty, and increasing operator stress. It also highlighted a reduction in tourism capacity and noted that some operators had exited the market before entering the licensing process.
Crucially, the ASSC warned that the statistics overlooked the parallel impact of planning restrictions, particularly in areas such as Edinburgh and parts of the Highlands. According to the leading trade body, licence approval figures risk creating a misleading impression that businesses are secure, when many continue to face closure due to separate planning controls.
The organisation maintains there is insufficient evidence to justify the scale and intensity of regulatory intervention imposed on the self-catering sector. It is instead calling for a more transparent and balanced assessment of the economic and social consequences of the licensing regime, alongside a policy reset that better supports both communities and Scotland’s vital tourism sector.
Fiona Campbell MBE, Chief Executive of the Association of Scotland’s Self-Caterers, commented:
“These statistics measure bureaucracy, not outcomes. They tell us how many forms have been processed, but they tell us nothing about the devastating real-world impact this regime has had on small tourism businesses across Scotland.
The overwhelming majority of applications being granted simply reinforces what the ASSC has consistently said from the outset: Scotland’s self-catering sector was never the rogue industry it was too often portrayed to be. Instead, what we have seen is a draconian licensing scheme imposed on thousands of largely compliant businesses, without clear evidence that it has delivered the housing outcomes used to justify it.
A licence granted does not guarantee business survival. Many operators who satisfy every licensing requirement are still being forced to close because of planning policy. Businesses are effectively being told they are safe enough to licence, yet unsuitable to exist. That contradiction goes to the heart of how incoherent this system has become.
The real story behind these statistics is not one of policy success, it is of a professional and resilient sector continuing to survive under the weight of excessive and overlapping regulation. We very much hope the next Scottish Government takes the opportunity to recalibrate this policy approach and restore the balance that is so desperately needed.”
The Scottish Government statistics can be viewed here.