The Association of Scotland’s Self-Caterers (ASSC) has released the results of a comprehensive survey on the financial and operational implications of the proposed Visitor Levy. Drawing responses from 419 accommodation providers across Scotland, the findings reveal a sector grappling with growing uncertainty and financial strain.
Key Findings:
- Business Distribution: Nearly 33% of respondents operate in the Highlands, underscoring the region’s reliance on self-catering tourism.
- VAT Registration: Over 17% of respondents are VAT-registered, indicating a divide in how the levy might affect businesses based on turnover thresholds.
Financial Impacts:
- Profit Declines: Many businesses report sharp drops in profits. For instance, one respondent from Argyll and Bute saw net profits plummet from £30,000 to £10,000 in one year.
- Viability Concerns: Nearly 30% of participants are considering closure due to financial challenges posed by the levy, reflecting widespread distress across the sector.
Industry Sentiments:
- Administrative Burden: Respondents frequently cited concerns about the administrative workload associated with collecting the levy. One business noted it would require at least one extra day per month to manage compliance.
- Fairness Debate: A divide emerged on whether non-VAT-registered businesses should be exempt from the levy, with 84% arguing for exemptions, fearing an uneven playing field and market distortion.
Qualitative Insights:
Participants raised critical concerns, including:
- Impact on Competitiveness: “Adding a levy will make us less competitive, especially against English counterparts without such burdens,” said a business owner from the Scottish Borders.
- Tourism Deterrent: Multiple respondents worried the levy would discourage visitors, particularly those on tight budgets. One owner commented, “If it adds another £100 to a week’s stay, clients will look elsewhere”.
- Local Recommendations: Suggestions included limiting the levy to the first three nights or excluding small businesses altogether to reduce impacts on the fragile tourism ecosystem.
Looking Ahead
With 61% of respondents being ASSC members, the survey underscores the organisation’s pivotal role in voicing industry concerns. The ASSC is calling on policymakers to consider these findings to strike a balance between generating revenue and preserving Scotland’s vibrant tourism sector.