About
Join
Log in
Back
27/10/2024

Scotland’s Self-Catering Industry Voices Concerns Over Visitor Levy in Latest Survey

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.

Get the latest from the sector

Stay up to date with our self-catering newsletter

Contact us

membership@assc.co.uk

07379 257749

Follow us

https://www.facebook.com/asscscotlandhttps://twitter.com/asscnewshttps://www.linkedin.com/company/association-of-scotland's-self-caterershttps://www.instagram.com/embracescotland
Terms and Conditions | Privacy Policy