Hansard

Before I turn to the content of the bill, I thank members for the thoughtful and constructive way in which many of them have engaged with it as it has progressed through Parliament. Members have put forward their views and arguments in a measured way in committee meetings, in the chamber and in my own individual meetings with them. I believe that that scrutiny process has improved the bill and has shown Parliament in a good light.

I strongly believe that a visitor levy can be a force for good and that it is a measure that can bring benefits to visitors, residents and businesses. It has the potential to be an important tool in enabling investment in local economies and supporting an important industry in Scotland.

Visitor levies are common in many parts of the world, but I am proud that, if passed, the bill will create the opportunity for the first true visitor levy in the United Kingdom. Twenty-one European countries already have visitor levies and I believe that it is right for Scotland to have the ability to add to that number.

The measures in the bill reflect good practice from around the world and our particular context in Scotland. I will turn to each of the features of international good practice as highlighted by the European Tourism Association and discuss them in relation to the bill. The first important factor is that genuine, effective, local consultation is carried out before any visitor levy is introduced. The bill will require local consultation before a visitor levy scheme is introduced or modified, and that consultation must involve communities, businesses that are engaged in tourism and local tourist organisations. Furthermore, we have today agreed to amendments that will strengthen that on-going consultation and engagement with the creation of a visitor levy forum.

Another element that is highlighted as good practice internationally is for it to be clear and transparent where funding that is raised by a visitor levy is being used. We know from our consultation and engagement that that is also important to the tourism industry here in Scotland. The bill therefore puts in place clear parameters on how the funding that is raised by a levy may be used. As members know, the funding may be used only to develop, support or sustain

“facilities or services which are substantially for or used by persons visiting the scheme area for leisure or business purposes”.

The definition was adjusted as the bill moved through Parliament in recognition of the views of the Local Government, Housing and Planning Committee at stage 1. That is another example of where the scrutiny process has improved the bill.

That position will give local authorities the flexibility to use the funding that is raised by a levy in the best way that supports the visitor economy in their area. That could include, for example, street dressing or promotion of a particular destination. It could support housing that is necessary to address recruitment and retention issues in the tourism sector. The funding could be used to invest in regeneration work that is required to facilitate investment by the private sector in a new hotel or tourist attraction. The Government has purposely not specified exactly how the funding should be used. What we have sought to do in the bill is to put in place a structure and process that means that, within broad parameters, decisions may be made locally that support the local economy.

A suitable notice period for the introduction of, or changes to, a visitor levy is another feature of international good practice. That also reflects the strongly held position of business in Scotland. That is why the Government has consistently said that a suitable implementation period is necessary to give businesses and local authorities time to prepare their systems, train staff and carry out other necessary preparations.

Under international good practice, a visitor levy should be easy to pay, collect and remit. The bill therefore puts in place a robust process with a suitable level of local discretion for collecting and remitting a visitor levy. The calculation of the visitor levy is straightforward and, importantly, it reflects the cost of the accommodation that the visitor has decided to book.

The bill also puts in place a clear process for any compliance and enforcement action. We do not expect such tools to be used often, but it is important that they are there to provide local authorities with what they need to address actions by those who, for example, deliberately seek to avoid a visitor levy.

The bill will not stand alone. Last year, I asked VisitScotland to convene an expert group and I invited local government and business organisations to sit on it. That group’s purpose is to develop guidance for local authorities that are seeking to introduce a visitor levy in their area.