HOSPITALITY leaders have criticised East Lothian Council’s consultation on a proposed visitor levy, claiming that there is “nothing to consult on” without more detail on how the charge would work or who it would benefit.
The criticism centres on the council's proposal to consult on a five per cent percentage-based visitor levy, despite the Scottish Government moving to give councils the option of introducing either a percentage charge or a fixed-rate fee.
Malcolm Duck, chair of the Association of East Lothian Community Councils (AELCC) and spokesperson for Scotland's Golf Coast, said that if a consultation were taking place, it should include discussion on whether a levy should be introduced, how it should operate and how the money generated would be spent.
He said: “Looking at it purely from the basis of a resident, it is a total joke, there is nothing given to consult on.
"If there is going to be a consultation, part of it should be on whether it happens and how it happens, otherwise it is no consultation at all.
"Also the information provided by the council does not provide information on alternatives for how the fee could be introduced."
East Lothian Council is proposing a five per cent visitor levy on overnight stays, with money raised intended to support tourism services and facilities; a consultation on the process is currently active.
Mr Duck also questioned where the proposed five per cent figure had come from and said that businesses needed more clarity and support, especially considering growing financial pressures on the "already-strained" hospitality sector.
He said: “It is imperative East Lothian Council correctly engage with the industry - East Lothian is not Edinburgh."
He added that Scottish hospitality had received less support than venues in England and Wales since Covid.
Mr Duck also rejected comparisons with European destinations, where visitor levies are commonplace, arguing that Scotland's 20 per cent VAT rate meant collecting an additional tax would have a much greater impact on businesses.
He said that a flat-rate levy would also be easier for accommodation providers to administer than a percentage-based charge linked to dynamic pricing.
Highlighting the seasonal nature of East Lothian's visitor economy, Mr Duck said that many hotels relied on strong summer trade to offset quieter winter months, with annual occupancy typically ranging between 50 and 65 per cent.
He added: "East Lothian Council should not bring in another tax to a hard-pressed sector to help with their financial deficit.
"It simply shows that they are happy for businesses to go to the wall for their own preservation.
"I very much hope they follow the growing number of councils throughout Scotland in rejecting the visitor levy and supporting their crucial accommodation sector."
Mr Duck's concerns were echoed by the Association of Scotland's Self-Caterers (ASSC), which also questioned whether the council had gathered sufficient evidence to justify the levy in a letter sent to the local authority in June.
Fiona Campbell, chief executive, said that the organisation was not questioning councillors' right to decide whether to introduce a visitor levy, but urged them to consider the available evidence before reaching a decision.
She said that there were still unanswered questions over the levy's wider economic impact, administrative burden on accommodation providers, its impact on small businesses operating close to the VAT threshold, why East Lothian was pursuing a percentage-based model when fixed-rate alternatives were expected to become available, and whether there was evidence the scheme would deliver a net economic benefit for the county.
Ms Campbell added: "East Lothian benefits from a vibrant and successful visitor economy which supports accommodation providers, hospitality businesses, attractions, retailers, supply chains and local employment across the county.
"Any intervention which risks affecting competitiveness and visitor demand should, in our view, be supported by robust evidence and a clear understanding of both the benefits and the costs."
The consultation on East Lothian Council's proposal on introducing a visitor levy is open until September 18.
A spokesperson for East Lothian Council said: "The council is looking for detailed evidence and views from accommodation providers, businesses, representative organisations, residents and visitors. We are particularly keen to receive detailed responses from those who would be directly affected by any future scheme.
"We have already received constructive feedback from accommodation providers, including the Association of Scotland's Self-Caterers and businesses operating a significant proportion of overnight accommodation in East Lothian.
"That feedback will be carefully considered alongside all other consultation responses and has already helped us identify opportunities to provide additional clarification and information during the consultation process.
"The consultation remains open until September 18 and members of the visitor levy team will continue discussions with accommodation providers and other stakeholders over the coming weeks. We want to hear directly from businesses before any recommendations are brought back to councillors.
"The draft scheme has been developed following detailed research, evidence gathering and engagement over a prolonged period. The council has also been closely involved throughout the development of the national visitor levy legislation and statutory guidance, working with partners to help identify both the opportunities presented by a visitor levy and the practical challenges involved in introducing one.
"The consultation is an important opportunity to test that evidence, hear alternative views and ensure any future decision is based on the fullest possible understanding of the likely impacts."
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