The proposed visitor levy in Argyll and Bute will contribute to the “alarming trend” of pubs and cafes closing, as well as a population decline, it has been claimed.
Members of the hospitality community and residents in the area assembled at the council’s headquarters recently to stage a static protest at the plans.
A special full council meeting is taking place on Friday, December 20, where councillors will decide whether or not the visitor levy, planned to be five per cent, should go out to public consultation.
However, the proposal has attracted opposition, with an online petition containing more than 1,500 signatures.
In a statement, Stef Burgon and Simon Hunt, of Kilmartin Castle, said: “The proposed five per cent visitor levy will impact local residents, as they will not escape the charge themselves.
“It will also contribute to the alarming trend of pubs and cafes closing in their communities, accelerating population decline.
“The demonstration took place in front of the council’s imposing hilltop castle, a fitting symbol of the power imbalance between local leaders and their constituents.
“The council’s assertion that the visitor levy will be beneficial for local businesses overlooks the harsh reality that many of these establishments are already in peril, struggling for survival.”
Mr Hunt said: “The claim that this visitor tax could be a good thing for our local communities is disingenuous. When most continental European countries reduce hospitality VAT rates to five-10 per cent to attract visitors, we already face a steep 20 per cent.
“Adding a further five per cent visitor levy means Scotland would have a staggering tourism tax rate of 26 per cent – a remarkable achievement that will drive away both tourists and potential future investment. At that point, we will be running a free campaign for Visit Ireland!
“This visitor levy could be the ‘straw that breaks the camel’s back’ for many already struggling businesses. If we don’t stand together against this unreasonable tax regime, we risk losing more of our cherished local spots – places where we gather and enjoy community life.”
The statement added: “Should the full consultation proceed, campaigners worry that the current proposed questions will not produce precise and accurate data.
“Finally, local businesses request that the planning department adopt a pro-business stance, collaborating with local enterprises to foster economic growth as a low-cost alternative to further taxation.
“For instance, in Denmark, some planning decisions have been outsourced to community councils, alleviating bottlenecks within the local planning department. Appointing a dedicated officer to assist entrepreneurs with starting businesses or renovating properties could streamline processes.
“The council’s struggles with implementing short-term let legislation must be a critical consideration in any discussions about introducing additional burdensome regulations for local businesses. Many accommodation providers paid for their licenses over a year ago but have not received them.
“They are under increasing pressure from booking agents to provide proof of licensure or risk having their properties removed from listings. We cannot afford to ignore the impact of these delays on local people simply trying to run a business.”
An Argyll and Bute Council spokesperson said: “The council will consider running a three-month consultation as an opportunity to involve our communities in assessing a levy in the future of the area’s visitor economy.
“We have listened to views already expressed – the draft consultation asks businesses what support they would like if a levy was introduced, and invites views on what services people would like levy income to be spent on.
“It also asks anyone against a levy to tell us how they would see public services used by the visitor economy funded in the future. The harsh reality is that services used by visitors as well as residents are under threat from shrinking public budgets.
“The national visitor levy legislation is there as an opportunity for investment specifically in the visitor economy, to benefit visitors, residents and the area as a location of choice for visitors. Areas around Argyll and Bute are considering a levy to help keep them competitive visitor destinations.
“If a consultation goes ahead, we will welcome views from across our communities on levy investment for Argyll and Bute.”
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