98% of Edinburgh’s tourists not put off visiting by tourist tax

Scotland on Sunday today has the claim ‘Tourist tax and ‘unwelcome message’ to the rest of the world’ based only on the self-interested views of some local businesses.

Easily found research tells a different story.

First:

Twenty-one out of thirty European countries have implemented tax, levies and duties on travel and tourism services that offer multiple examples and models where tourism tax revenue is used to invest in sustainable tourism development. Both the research and case studies prove that well-designed tourism taxes can be both practical and meaningful tools in the sustainable management of the destination’s resources. Ultimately, regenerative tax can offer a vital lifeline to recovery.

https://www.citynationplace.com/exploring-tourism-taxation-as-a-method-to-fund-a-regenerative-future

Second, looking specifically at Edinburgh:

Tourism taxes are not new, but are seeing growing use across the world with 16 destinations in Europe now utilising them in some form. They are seen as a tool to assist areas coping with mass tourism by helping to control visitor numbers as well as offering a new and vital source of revenue to be reinvested into the local area.

Edinburgh is the most visited UK city outside of London welcoming some 2 million overnight visitors in 2017 – a figure that has soared 30% from 2015.  In its research into the effect of implementing a Transient Visitor Levy (TVL) the city council argued that alongside its beneficial effects, tourism “produces external effects, such as congestion, pollution, higher prices, and other perceived inconveniences to residents.”

Therefore, a motion has been presented by some city planners to impose a £2 or 2% per night TVL on accommodation for the first seven nights of a visitors’ stay.  It is a divisive recommendation as some city planners claim it will raise up to £11 million in tax revenue for the city while industry bodies, including UKHospitality, estimates that the measures will potentially cost Edinburgh £45 million.

STR’s Tourism Consumer Insights team set out to bring more clarity to the issue by undertaking our own primary research.  Using our Edinburgh Visitor Survey we polled recent visitors to the city to gauge their perceptions on a tourism tax and to capture additional data to enable a deeper understanding of the economic impact such a tax might have on the city.

Visitors were asked if they agreed or disagreed that a tourism tax was a good method of raising funds to improve tourism services and facilities in a destination.

https://str.com/article/tourism-tax-blessing-curse

See the chart above for the results.

3 thoughts on “98% of Edinburgh’s tourists not put off visiting by tourist tax

  1. Florida has a 6.00% state sales tax rate, a max local sales tax rate of 2.00%, and an average combined state and local sales tax rate of 7.02%.
    In addition, Florida state law allows counties to levy and impose five separate local option taxes, referred to as the Tourist Development Tax, which allows rates of up to 6.00% of each dollar collected from short-term rentals of up to six months from any person who rents, leases, or lets any living quarter or accommodations in any hotel, motel, apartment, rooming house, mobile home park, recreational vehicle park, condominium, or timeshare.
    The likes of UKHospitalty need to STFU and instead lobby Westminster for a reduction on the regressive 20% VAT.

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  2. Many European/ world destinations are now imposing a tourist tax on particular hotspots due to the amount of tourists visiting. Edinburgh is one of these which should be glorified instead of vilified. But that is something for The Scotsman to realise.
    As you point out John, tourists are most definitely not put off from visiting due to a small tourist tax being applied.
    I’ve spent a lot of time in the area surrounding Edinburgh recently and it’s buzzing.
    Just look at ‘Flight Tracker’ to see the amount of flights coming in and out Edinburgh.
    A big draw for tourists is St Andrews and the amount of tourists who go there but also have stays in Edinburgh as part of their trip.
    They love the Ceilidh nights and to play a small part of Scottish tradition.
    I’ve danced with Texans, swedes, canadians, germans, new yorkers, danes and many more and they love the culture, the friendship and the welcome that they receive in Scotland.
    Tourist tax Pah! The visitors are just so happy to visit Scotland.

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  3. Recently spent ten days in Mallorca. Happily paid tourist tax to enjoy beautiful countryside and vibrant city of Palma, same size as Edinburgh. If tax helps maintain local facilities it is a great idea.

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