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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 27 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

In that case, I call Kevin Stewart.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I welcome our second panel of the morning. With us from the City of Edinburgh Council, we have Paul Lawrence, chief executive, and Elin Williamson, head of business and growth. We also have Malcolm Macleod, assistant chief executive, place, Highland Council; Rob Dickson, director of industry and events, VisitScotland; and Cat Leaver, director of strategy and competitive intelligence, VisitScotland.

I will open with a slightly different version of the opening question that I put to our first panel. Do you feel that we are ready to implement a visitor levy, and what impact do you think that the visitor levy will have, given the economic context of the tourism industry that we heard outlined by the industry representatives earlier? I invite Paul Lawrence to respond first, not least because he might want to respond to some of the points that were raised by the previous panel of witnesses.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I would like to advise the witness, who managed to name check various parts of the city and not mention any parts of south Edinburgh, that Bruntsfield and Morningside could use investment as well.

I will move on to the other witnesses. Two specific points were raised earlier, and the one that I am most concerned about is the level of business awareness and engagement, given that the levy is soon to be introduced. Could you address that point?

The second point concerns the 18-month lead-in period. January is not 18 months ago, and the situation is made more concerning by the fact that the SSI that we mentioned might introduce a further change. Could you address the point around the lead time that businesses have asked for, as was expressed quite clearly by the previous witnesses?

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

If Elin Williamson and Cat Leaver would like to come in, please say. Otherwise, I will go to the principal witnesses from each of the organisations.

Rob Dickson, I put the same opening question to you. Do you think that we are ready for the visitor levy, and what do you think the impact will be, given the economic context of the tourism industry in Scotland?

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

That is slightly different from saying that there are lots of different ways of looking at it.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Again, I will push back on that. As somebody who stopped doing economics in my first year of university, I may be going beyond the bounds of my expertise, but I think that what you are saying is slightly different. It is not that there is not elasticity of demand; it is that you have rising levels of demand but, at any given moment, the market will be finding a price. If you were to put prices up by 5 per cent at that moment, you would expect to see some reduction. It could be a 5 per cent drop in demand or a 1 per cent drop in demand, but you would expect to see a drop in demand.

I accept that it may be a difficult assessment to make but I think that it is questionable to say that there would be no impact on demand. I am just wondering about that assessment of what a 5 per cent increase would do to demand鈥攚hich is different from saying that there are rising levels of demand.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I want to ask a couple of final questions about the technicalities of the collection of the visitor levy. Let us look at the Edinburgh proposition. There will be a 5 per cent levy, and the council will allow accommodation providers to retain 2 per cent of that, but there will be 20 per cent VAT on top of that. Would it not be better just to charge 3 per cent? The key concern of providers is that they will have to put their prices up in a way that is beyond their control. The council would get the same amount of money if it just charged a 3 per cent levy and the accommodation providers would be able to charge a lower price. Would that not be simpler?

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Sorry鈥攜ou need to say that again.

Economy and Fair Work Committee

Tourism

Meeting date: 3 September 2025

Daniel Johnson

It is 2 per cent of the total amount that they are collecting.

Economy and Fair Work Committee

Interests

Meeting date: 3 September 2025

Daniel Johnson

Thank you for your thoroughness on that, and welcome to the committee.

As much as we welcome Stephen Kerr to the committee, it is also sad to see Jamie Halcro Johnson leave. I am sure that all committee members will join me in thanking him for his contributions and wishing him well in whichever new committee he finds himself.