The Scottish Tourism Alliance (STA) has expressed disappointment
that today's Autumn Budget has failed to address two of the
biggest pressures facing Scotland's tourism and hospitality
industry, warning that rising employment costs and taxation
continue to limit businesses' ability to invest, create jobs and
grow.
Ahead of the Budget, the STA together with industry colleagues
had called on the Chancellor to cut hospitality VAT to 10% and
revisit the increase in employer National Insurance Contributions
(NICs), alongside measures to support international tourism,
investment and growth.
The STA welcomes measures to ease fuel costs and support
household spending but warns that the increase in the National
Living Wage will place even greater pressure on tourism and
hospitality businesses already struggling with rising employment
costs.
With additional business rates relief announced for hospitality
and leisure businesses in England, tourism and hospitality
businesses in Scotland will be looking to the Scottish Government
to go further on current business rates relief and ensure no
further rises in its Budget on 3 December, alongside pushing
ahead with ensuring a permanently fairer and proportionate system
is put in place.
MBE, Chief Executive of the
Scottish Tourism Alliance, said:
We recognise the difficult decisions facing the Chancellor, but
it is disappointing that the Budget has not gone further in
addressing the pressures facing our tourism and hospitality
businesses.
We have been very clear in our ask to the UK Government to lower
VAT for our sector to 10% and look again at employer National
Insurance. Both would make a real difference to businesses,
allowing them to employ people, invest in their product and
continue to grow.
The cost of doing business continues to bite hard, with increased
employment and operating costs and high levels of taxation all
putting pressure on businesses and their ability to invest.
Our tourism and hospitality sector is a vital part of Scotland's
economy, and there is a significant opportunity for growth,
particularly from our international markets.
We already know that people want to come to Scotland. The
opportunity now is to capitalise on that demand, but to do that
we have to stay competitive on price and keep investing in the
quality of experience people expect when they get here.
The domestic market is much softer, particularly when it comes to
family spending, and we're potentially also looking at another
winter with high fuel costs for both businesses and consumers.
We also need to keep driving international footfall. That means
continuing to invest in how we market Scotland and the UK
overseas, improving our tourism infrastructure and bringing back
tax-free shopping.
We welcome the backing for the new outdoor arena at the SEC in
Glasgow. Scotland's events industry is a major driver of tourism,
attracting visitors from across the UK and overseas and
generating significant business for hotels, restaurants and the
wider visitor economy. Support for the SEC expansion was one of
the projects we called for ahead of the Budget, and this
investment shows what can be achieved when tourism infrastructure
is recognised as an economic priority. We need to see more of
this if Scotland is to compete internationally and realise its
full tourism potential.
Our tourism and hospitality sector has considerable untapped
potential as a growth industry and a key export for Scotland.
With the right policies in place, it can create more wealth and
employment and bring economic benefit to communities right across
the country.
We need the UK Government to recognise that potential and help us
turn strong demand for Scotland into economic growth.
