As protestors urge Argyll and Bute Council to scrap its Visitor Levy ahead of a vote this week, we ask your local councillors where they stand on this controversial issue.
Members of the local hospitality community and residents gathered outside Kilmory Castle in Lochgilphead on Friday December 13 to voice their opposition to the ’Tourist Tax’, and urge elected officials "to vote no to any further taxpayer spend on this unwise proposal".
This Friday, December 20, councillors vote on approving the draft tax scheme - charging 5 per cent on each overnight stay collected by the region’s 4,000 accommodation providers - for a 12 week consultation next year.
The cash-strapped council wants the revenue - an estimated £9 million per year minus an annual £460,000 admin cost - the proposal explains: "Argyll and Bute Council intends to utilise the powers granted by the Visitor Levy (Scotland) Act 2024 to impose a levy.
"With ever-decreasing budgets, and increasing visitor numbers, the council will struggle to support visitors without another source of income. New investment is needed so that Argyll and Bute can compete as a destination and appeal to new markets."
Small to medium size businesses would face a one-off setup cost of £1,000-£7,000 and annual cost of submitting quarterly returns of £300-£400, while micro businesses would have setup costs of £150-£1,100, with the ongoing admin cost of £100-£500 per year.
Opposition is mounting. A petition, ’Urge Argyll and Bute Council to Say No to the Visitor Levy Proposal’, has topped 1,500 signatures. It now exceeds the total of two petitions, raised by parents in Cowal and Dalmally, that called on the council to drop its unpopular ’cluster schools’ plan, named the ’Empowering our Educators’ Collective Leadership Model, ditched by the previous administration under intense scrutiny and pressure in 2022.
A council Facebook post this month, asking “What benefits could a visitor levy bring for you?”, attracted 83 replies - none of them positive. Business owners accused the council of a "tax-grab", “inaccurate” and “biased” FAQs in favour of the levy, and said it would close firms down.
One, whose business was at stake, said: "We have up to 44 guests a week visit Dunoon. If this additional tax comes in, that’s 44 less people visiting Dunoon, as we will need to close our doors. That’s 44 less people in the local shops, bars, restaurants, and takeaways, etc. every week that we promote. You are destroying small business and running the town into the ground."
A second summed up: "A lot of unpaid work; a new horrid role as tax collector; loads of stress; potentially needing to downscale to survive the tax; less competitive prices for our guests; more struggle, (it gets harder every year to survive); fear of penalties if the complexities of collecting and accounting for the tax gets on top; sleepless nights; having to weather the injustice of seeing our guests go to other locations with no Host Tax; difficult decisions about our future in Argyll; loss of valued colleagues in tourism-related businesses."
A third asked the council back: "Are you taking this feedback into consideration? If so, I think you have your answer."
The council said "no decision" had been made on the proposed levy, and the consultation would be an opportunity for people to give their "valuable input".
But the level of opposition has raised a lot of questions. What if people don’t want a visitor levy? Will that opposition be gauged, and if so how? If so, will that wish be heeded by council officers and councillors?
Among the consultation questions, residents and visitors are asked: "If you do not support a levy, how would you suggest that investment in our tourism infrastructure and services is paid for?" Visitors are further asked: "Would a Visitor Levy make you less likely to book accommodation across Argyll and Bute?"
Before the vote, we asked your local councillors if they support a visitor levy, what the consultation should ask, and what proportion of their constituents are for and against a levy.
Among the ruling administration, Council Leader Jim Lynch (Oban South and the Isles, SNP) said: "At the highest possible level, we must at least explore options like this which, if it ultimately went ahead, would offer potential to invest in Argyll and Bute. The challenging financial circumstances of local authorities are such that we must look at all possible opportunities.
"We have received a lot of views so far and I’d like to thank those who have been in touch so far. We have heard from people who are both for and against the introduction of a levy. I hope that if the consultation is agreed next Friday, people will continue to share their views."
Provost Dougie Philand (Mid Argyll, Ind) told us: "It’s not the levy, it is the principal of the levy, and possible effects, that are being consulted on before any decision to adopt a levy is taken. The levy may not be adopted at the council meeting next year.
"The consultation has not commenced, so you’re asking me to make up my mind before the facts are fully gathered, and therefore pre-empting any consultation results, which to me is unfair. There are a lot of ifs and buts to be answered.
"I’ve had seven representations from constituents in Mid Argyll: four from businesses, two from organisations and one sole constituent, hence my concern that we have not got the level of response.
"So far all of the representations from local constituents have been against the proposal, mainly citing the effect it would have on their businesses."
John Armour (South Kintyre, SNP), Policy Lead for Roads, Transport and Amenity Services, added: "The challenging financial circumstances of councils mean we must look at all avenues open to us to look into alternative funding. The public would rightly question us if we didn’t.
"From my own ward I have had five responses opposed to the levy and all of those are in the hospitality trade. This is not surprising as they are most likely to be impacted more than those not in the trade. However having spoken to those out with the hospitality when out and about in the area almost everyone has said that we need to at least consider it and therefore go to consultation."
Policy Lead for Care Services Dougie McFadzean (Kintyre and the Islands, SNP) is "still undecided". "I can see the advantages and disadvantages of having such a levy but will await the outcome and content of the consultation before making my mind up," he said.
"The representations I have received so far are predominantly from proprietors of holiday accommodation and don’t reflect the wider community.
"People from all backgrounds should make it clear if they want the levy or not. I would urge as many people as possible to complete the survey."
Kieron Green (Oban North and Lorn, Ind), Policy Lead for Planning and Regulatory Services, supports the levy. "Given the pressure that tourism places on Argyll and Bute, it is only fair that visitors contribute to the provision of services and infrastructure to cater to these demands," he said.
"The reasons behind views on a visitor levy should be fully explored. If there is additional information beyond that supplied in question answers, that respondents consider relevant, I would encourage them to send this to the council also."
Luna Martin (Oban North and Lorn, Green) is also supportive of the idea. "A visitor levy could be beneficial for Argyll and Bute, however any such levy would need to be carefully tailored to support our local needs and priorities," she told us. "I see the draft as being adequate for the purposes of consultation.
"The questions have been formulated to understand the reasons for the support or non-support of the levy. Under most questions there is also an area for additional commentary."
Deputy Provost Jan Brown (Mid Argyll, SNP) answered: "Nothing has been decided, nor will it until the consultation has been evaluated, questions answered, all points looked at and discussed by councillors and council officers. I would urge everyone to take part in this consultation, ask questions, make their views known but most importantly take part."
Anne Horn (Kintyre and the Islands, SNP) added: "I do support a public consultation regarding a visitor levy to allow me to make a fully informed decision. I am sure that answers to the public consultation (should the proposal progress) will indicate changes required. The majority of emails I have received have raised concerns regarding the administration of a visitor levy."
An exception within the administration, calling a levy "premature", is Andrew Kain (Oban South and the Isles, Ind). Councillor Kain did not respond to our questions, but told Oban Lorn and the Isles Area Committee on December 11: “We have a very diverse and fragile economy here, and the idea that imposing a levy, indeed a tax, will solve our problems on funding very difficult issues is premature.
“There is also great diversity across Argyll and Bute, between island communities and mainland communities. We have not seen the impact of other changes that are going to be put in place regarding the visitor economy. Finally, everybody has a view on this, but it is not everybody who is going to be paying it, and there is unfairness built into the system.”
Outside the administration, we found no support for the levy. Councillor Amanda Hampsey (Oban South and the Isles, Con) told us: "I acknowledge the prospect of additional monies it could generate; however, I do not feel it is justifiable for this to be at the expense of local businesses, who have already strived to survive throughout Covid and rising running costs.
"Consideration has not been afforded to rural and island communities, nor an islands impact assessment carried out. No exemption had been offered to islanders, left stranded by ferry cancellations. No exemption for healthcare workers who are much needed.
"To date, I have yet to find any business or constituent who won’t find the impact detrimental to their business and in some cases, would find their business non-viable."
Councillor Alastair Redman (Kintyre and the Islands, Ind) added: "I do not support the introduction of a visitor levy in Argyll and Bute. Our region is heavily reliant on tourism, and any additional charges imposed on visitors could discourage them from choosing our area as a destination.
"The proposal lacks clarity on how funds would be allocated and managed, and there is insufficient evidence to suggest that the benefits would outweigh the potential harm to tourism-dependent businesses.
"If the levy is to be considered further, I would insist on a detailed economic impact assessment to gauge potential effects on tourism.
"People should be directly asked if they support the introduction of a Visitor Levy. Other questions I would propose include: how do you think the visitor levy will impact your business or personal visits to the area?
"From my discussions with constituents, the overwhelming majority are opposed to the Visitor Levy."
Councillor Jennifer Kean (South Kintyre, Ind) hopes the administration listens to all the concerns.
"If the Scottish Government want to implement a Visitor Levy, they should be responsible for the consultation and implementation of such a scheme country wide rather than effectively trying to ‘pass the buck’ on to local authorities," she said.
"As it stands, the administrative time and costs alone for local businesses and indeed the council could be substantial, potentially forcing some businesses to close their doors and outweighing any financial benefits that the levy may offer.
"I have received countless emails from concerned businesses Argyll wide and not one business has been in favour of this scheme so far as it stands.
"I sincerely hope my colleagues within the council administration take all of the concerns of our constituents on board and are not simply pressured into supporting the installation of a visitor levy by the Scottish Government on the basis of party political allegiance."
Councillor Andrew Vennard (Oban North and Lorn, Con) described "shortcomings" in the consultation, saying people are asked to comment on a proposal without knowing how the funds raised will be spent, "leading to a one sided discussion which fixates on the revenue being generated".
"The data which supports the projections of £9 million of gross revenue has also not been set out, which makes it very difficult to scrutinise," he said.
"The draft proposals, when taken as a whole, have been put together with the minimum amount of study, research, and pre-consultation, and the draft timetable seems to have been based on trying to introduce a Visitor Levy scheme at the same time as other councils."
Councillor Tommy MacPherson (South Kintyre, Ind) is concerned about legal challenges if a levy is adopted. "This latest tax scheme is proving to be very unattractive within Argyll’s hospitality industry, raising the question it’s potentially flawed," he said. "A council cannot knowingly impoverish its communities.
"Come Friday, I personally will be seeking an assurance from senior officers the scheme carries no risk of legal challenge - a cost which would be met by our council tax payers.
"You can put lipstick on a pig. It’s still a pig!"
Another outspoken councillor is Garret Corner (Mid Argyll, Con), who told us: "I can say 100% agreement that we do not want a tourist tax which is what it is. I have had the largest amount of emails since I became a councillor over this matter, and all are against it.
"I cannot be against a consultation in a democratic country, but that is if the consultation is not biased and I have to say it seems weighted toward the answer the SNP and friends administration, officers and central government want to get.
"They saw the original figure of £9 million and have been fixated ever since. This is just an extra tax so that the SNP central government can continue to underfund local government.
"Argyll and Bute should sit back like Dumfries and Galloway and use the fact we are not implementing this tax as a plus to our tourist sector and see how other councils perform before subjecting our residents and visitors to this extra tax."
Councillors Willie Hume and Julie Mckenzie did not reply by our deadlines.
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