Glasgow tourist tax proposals receive union backing 'in principle'

Bryan Simpson, lead organiser for Unite Hospitality, told The Herald that the city council must ensure that a projected £11.4m annual windfall goes into the pockets of hospitality workers.

“We must see real, serious investment in the workers who actually provide services to these tourists”, Simpson said.

“Whether they're a barista, a restaurant worker, or a tour guide, [these workers] are providing exceptional service. 

Simpson added: “That 5% must be invested in ensuring they have the best quality council or affordable rental housing, but also investing in good jobs and conditions.

“The people who are at the sharp end of tourism are some of the lowest paid and most contractually insecure in the whole economy.

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“We need that money to be invested in those workers, not just going to the debt of the council, or spent on unnecessary things within Glasgow.” 

Discussions over the charge come after City of Edinburgh Council voted to implement a similar levy last week.

Under the terms of the ‘European-style’ tax, hoteliers would be required to charge a 5% on overnight stays– estimated to be an additional £4.29 per night.

All hotels, hostels, guest houses, bed & breakfasts and self-catering accommodation within the council area would assess the tariff.

1.5% of each levy would be retained by the accommodation provider to cover costs incurred by the implementation of the scheme.

Councillors will consider the plans, mooted by city treasurer Richard Bell, at a meeting of the council's administrative committee Thursday morning.

Once operational costs are deducted, between £11.2m and £11.4m in revenue is expected to be generated each year. Funds could be invested in improving cultural and artistic events across the city. 

If the proposal is approved, the council will kick-start a 12 week consultation phase before taking a final vote. The scheme would be put into place 18 months after that decision. 

The Scottish Conservatives have hit out at the plan, suggesting it would disadvantage local hospitality businesses. 

Dr. Sandesh Gulhane, Conservative MSP for Glasgow, said: “We believe this new levy will negatively impact hotels, bed and breakfasts, and self-catering properties in Scotland, and could result in reduced visitor spend.

“The levy will also hinder a sector that has already been damaged by the SNP’s short term lets regulations and by their refusal to pass on full business rates relief to the hospitality and retail sector."

The MSP added: “The administrative burden on businesses of collecting and accounting of all the sums involved is going to be huge.”

“We should be supporting our business and pursuing growth and jobs, not punishing important drivers of Glasgow’s economy.”

Industry leaders have spoken out against the potential impact of the tax on their businesses.

Tourism is great for Glasgow's economy, but it is also true that tourism puts a lot of pressure on local services. (Image: Press Association)

Asked for comment, a spokesperson for the Scottish Tourism Alliance (STA) said: “Introducing a successful visitor levy scheme is about the right application, right place, and right time, if it is to act as a force for good that enhances our visitor offer and appeal. However, the STA believes none of these conditions of success are currently in place. Instead, adopting this policy now will cause more harm than good.

The STA strongly recommends local authorities across Scotland take a pause to take stock, give time for the charging model to be reviewed, and observe how the visitor levy plays out in Edinburgh and in other parts of the UK before making a firm commitment to introduce their own visitor levy scheme.

“A rush to introduce a visitor levy will damage the essential tourism and hospitality businesses that local economies rely on to support jobs and attract visitors.”

The Scottish Greens have heralded the tax as a way to reinvest in local communities.

Kelvindale and East Partick councillor Blair Anderson said: “A tourist tax would be a massive opportunity for Glasgow, not just to raise money and continue to invest in services, but also to make sure we continue to be a city that is attractive and tourists want to come and visit.

“Tourism is great for Glasgow's economy, but it is also true that tourism puts a lot of pressure on local services.

“A small change on accommodation that people pay for is not a deterrent. Lots of cities around Europe already have a tourist tax.”