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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 26 December 2025
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Displaying 1194 contributions

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Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Fantastic. We have questions from Willie Coffey next.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Kevin Stewart, would you like to ask questions?

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I understand. It is a fraction of a percentage.

On the percentage collection issue, VAT—I have made this point in a private briefing about the City of Edinburgh Council—is a non-trivial tax to collect. A lot of verification is required. If we consider hotel accommodation, there are a lot of different components to that that go beyond the provision of accommodation. There are fine-dining experiences in which the cost of the accommodation is probably less than half of the total bill that is paid. What prevents a bed and breakfast provider, for example, from saying, “We don’t charge for our accommodation. We just have a £100 breakfast that we provide in the morning”? How would you prevent that from happening?

12:15  

More broadly, the verification that is required to audit the books to ensure that each room rate has had the 5 per cent levy applied correctly is quite complex, certainly as compared with simply totting up the total number of nights of occupancy and then multiplying that by a flat fee.

What stops abuse and, more important, how will verification take place? It strikes me that that is a non-trivial issue.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Determining that is quite complicated, is it not?

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Okay. I will leave my questions there. I thank the witnesses for their contribution.

12:20 Meeting continued in private until 12:35.  

Economy and Fair Work Committee

Interests

Meeting date: 3 September 2025

Daniel Johnson

I thank the deputy convener for taking care of that so efficiently. That brings us to agenda item 2. Stephen Kerr is a new member of the committee, and I invite him to declare any relevant interests.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Thank you. I know that members intend to ask about some of the detail that you have just raised.

I put the same question to David Hope-Jones.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Thank you. I invite Leon Thompson to respond.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Thank you very much for that injection of enthusiasm.

Can I ask a brief supplementary based on the last set of questions, which have been largely about matters of competitiveness and price sensitivity? To some extent, this is a policy that has been based on the assumption that a price can be added on and that customers will pay it. To what extent are tourism businesses price setters and to what extent are they price takers of a price that is set by the market? This is, in the formal parlance, about the elasticity of demand. To some extent, it will be neither one thing nor the other; it will be somewhere in between. To what extent can tourism businesses set a price and to what extent do they have to accept the price that the market sets and tourists are willing to pay? Marc Crothall, you are the one who has been discussing this.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I feel compelled at this point to say that we appreciate both Oasis and Oasis fans in this committee.

When policies are introduced, it is always worth taking a deep breath and taking a couple of steps back and asking whether we are where we expected to be. When the visitor levy was first mooted, people were talking about a pound or two on a hotel visit. If we are looking at 7 per cent and then we add VAT, it is in effect 10 per cent on top. If we managed to find a hotel room for £150 in Edinburgh, it is putting another £15 on top of that bill. Is that 10 per cent additional charge to the guest what was expected when this was first discussed?

10:15