Meeting of the Parliament 13 September 2023
The tourism sector is vitally important for Scotland. It is the largest part of our economy in terms of employment and is particularly important in remote and rural areas where other job opportunities might be limited. It is made up of thousands of small operators right across the country who, often, are self-employed.
However, this vital sector is today under an existential threat due to the botched introduction of a licensing scheme for short-term lets, the unintended consequences of which are already causing huge concern and could see the shedding of thousands of jobs. It is a direct result of the actions of the Scottish Government, and it is entirely in the Government’s gift to resolve the issue.
That is why the Scottish Conservatives have secured the debate for the chamber, asking the Scottish Government even at this late hour to pause for one year the introduction of the licensing scheme to allow for a full review and consideration of the unintended consequences. I appeal to ministers to listen to what we and other members say in the debate and to what industry bodies and the wider business sector are saying outside the chamber, and to take a commonsense approach and agree to a halt. Otherwise, the consequences for the wider Scottish economy could be devastating.
I do not know of anyone in this debate who thinks that some level of regulation for self-catering is unnecessary. There is a well-documented problem with what are known as party flats, particularly in city centre locations, which cause disruption for permanent residents. The actual numbers might be small in relation to the overall size of the industry, but it is nevertheless an issue that needs to be addressed, and we have never argued otherwise.
Moreover, councils already have powers to grant or withhold planning consent for the operation of short-term lets. In addition, we now have short-term let control areas, which councils have the power to introduce and operate.
A well-regulated short-term lets sector is a social good. It is important to not just tourists—although it is very important to the tourism economy—but many other sectors of society, including commercial travellers; people whose work regularly takes them to different parts of the country; people who need somewhere to stay on a temporary basis while between houses or while having renovation works done to their property; or even victims of domestic abuse who need to find temporary accommodation. Such people need access to short-term lets. Not everyone wants to stay in a hotel, and the privacy, affordability and convenience of a short-term let makes sense for many people.
One of the problems with the Scottish Government’s licensing scheme is that it affects not just stand-alone self-catering units, which apparently are the source of the issues that we are hearing about. It also affects individuals who let out their spare rooms, which is, as we have just seen, an issue in Edinburgh during the festival, when many performers and visitors come here and stay in people’s houses. It is no wonder that, among Edinburgh festival organisers, there is a real concern as to whether the city will be able to provide sufficient accommodation in future years to allow our successful festivals, which are such an important part of the city’s economy, to continue.
The licensing scheme also impacts traditional bed and breakfasts and guest houses. They are already well-regulated sectors of the market, which have to comply with a whole host of regulations, yet an additional set of burdens and costs is being put on them. The scheme even applies to people who are swapping houses with others in a different country. There is no evidence whatsoever that the categories of people to whom I have referred are generating complaints about antisocial behaviour, but they are all caught up in the new rules.
There is already evidence that operators are simply not applying for a licence; therefore, many are potentially intending to leave the market. Because of the costs and bureaucracy involved, those who run a small operation, such as letting out one bedroom in a bed and breakfast, are asking themselves whether it is worth their while to go to the expense of applying for a licence. The consequence will be a shrinkage in the provision of accommodation for visitors and an impact on the very tourist sector on which we, as a country, rely so heavily.