UKH urges Edinburgh to implement cost recovery to visitor levy

UKH Scotland has urged the City of Edinburgh Council to adopt the cost recovery mechanism recommended in the draft visitor levy scheme.

The draft scheme, which was published ahead of the Policy and Sustainability Committee meeting next week on Thursday 22 August, has recommended that 2.5% of proceeds collected by the levy is retained by the accommodation provider to recover its cost.

The trade body said it believes this is essential to “ensure the scheme doesn’t impede the ability of accommodation providers to invest, deliver economic growth and create jobs”.

The draft scheme also recommends hospitality representation on the visitor levy forum through the Edinburgh Hotels Association, a member of UKH Scotland; a levy of 5%, capped at a maximum of seven consecutive nights; and for half of funds raised to be spent on culture, heritage, events and destination management.

Leon Thompson, executive director of UKH Scotland, said: “The ability for accommodation providers to recover their costs has been a key ask on behalf of our members, and I’m pleased that City of Edinburgh Council officials have acted on this.

“I’m pleased that half of the funds raised will be spent across culture, heritage, events and destination management, but it must be spent in a way that will boost the visitor economy, keeping the city as a leading destination. It must not be used as a way to top up day-to-day council operations.”

He added: “UKHospitality Scotland has been clear about the negative impact this scheme could have on hospitality and tourism, if done wrong, and the inclusion of cost recovery, ring fencing and hospitality representation on the forum is a positive start. I hope the council takes forward these recommendations.”