STA statement: The Scottish Tourism Alliance responds to the Scottish Government’s Programme for Government
In response to the Scottish Government’s Programme for Government 2024-2025, announced yesterday (Wednesday 4th September), Marc Crothall, Chief Executive of the Scottish Tourism Alliance, said:
“While the Scottish Tourism Alliance (STA) welcomes many of the measures announced in the Scottish Government’s Programme for Government (PfG) and the commitment to support businesses, ensuring the conditions are right for them to thrive and grow sustainably, we had hoped to see a firm commitment to accelerating the reform of the non-domestic rates system which remains a primary ask of the sector. Undertaking reform in the year ahead would help to speed up economic growth, free up investment and enable opportunities for the sector to grow.
The STA, together with other business organisations, has made clear asks of the Scottish Government to consider the impact of new legislative policies and, where these are to be implemented, a more joined-up approach is taken to avoid any unintended consequences. It is encouraging to read that these asks have been acknowledged and that there are plans to continue improving how businesses and government work together via delivery of the commitments set out in the New Deal for Business. However, we are keen to see action now, with commitments delivered at an increased pace.
Effective and efficient joint working will also be key in how plans progress for a cruise ship levy and the Heat in Buildings Bill to avoid any unnecessary consequences or additional burden on businesses.
While there are no surprise plans to introduce new regulations or burdens, it gives businesses much-needed breathing space at a time when consumer spending has decreased, the cost-of-doing business remains high, and new legislation such as the Short-Term Let Licensing Scheme and the Visitor Levy, continue to add pressure.
We note that Scottish Government has committed to supporting local authorities to implement the Visitor Levy. However, we continue to urge caution around introducing a scheme and how implementation is progressed. Significant concerns remain, particularly around the percentage rate that will be charged to visitors, with reports that this could be as high as 12.5% in one area.
Visitors already face an accumulative cost burden as a result of rising costs to eating and drinking out, accommodation, and car hire charges, which is directly impacting our competitiveness as a destination. With an evident decline in domestic visitors, we are acutely aware of reaching a price tipping point that our international visitors might also be unwilling to pay. We’d welcome greater clarity from Scottish Ministers on what charging level would require ministers to step in.
We’d also ask Scottish Government to address our concern that local authorities are considering further aspects of the tourism and hospitality sector to tax in order to address ongoing funding challenges. This will place a disproportionate burden on the industry and its ability to survive, thrive and grow sustainably.
The plans to tackle challenges in the labour market, notably through the expansion of Scotland’s Migration Service and the case for a Rural Visa Pilot to support rural employers, are promising and will be welcomed by businesses in the sector, especially those facing distinct demographic issues.
We do, however, think this can go a step further and a Scotland-specific visa be introduced in recognition of the recruitment issues and population challenges the country faces.
At the same time, the prioritisation of investment in delivering more affordable housing will play a key role in ensuring tourism and hospitality workers have access to accommodation, especially the bringing unoccupied housing back into use.
The introduction of a new Planning Hub to allow planning authorities to make quicker decisions on hydrogen planning applications is a promising development, and we urge Scottish Government to apply a similar initiative to accelerate much-need opportunities in tourism and leisure.
Investment in both transport and digital connectivity remain crucial if we are to achieve the ambitions set out in Scotland’s National Tourism Strategy, Scotland Outlook 2030 and so, we are reassured to see ongoing commitment to projects including progress dualling the A9, ferries, rail travel and EV charging.
We look forward to seeing how these plans are put into action and progress over the year to have tangible impact for Scotland’s tourism and hospitality industry.”
