Tourism Debate
I recently got the chance to speak in a Scottish Parliament debate about tourism in Scotland. I used my speech to highlight some of the issues and challenges facing Edinburgh in the tourism sector.
Tourism in Edinburgh and the surrounding area is a £2 billion a year industry. The city is among Europe’s top destinations and performs well in ‘Top City’ style polls. However, we cannot afford to take this reputation for granted.
Unfortunately the experience of the Clan Gathering has shown what can go wrong when tourism events are badly administered. I was delighted that Audit Scotland agreed to conduct an inquiry into the Gathering. Their report published last week revealed a lack of due process and transparency on the part of the Scottish Government and the Council which has left over 100 businesses picking up the pieces with unpaid debts. I am also concerned that the supposed economic benefits have been overstated. We need to learn lessons from the process.
For a fuller account of the Audit Scotland report you can read my thoughts here or read some of the press coverage here, here and here.
Elsewhere in my speech I spoke of the difficulty that businesses which depend upon tourism and tourists are facing as a result of the business rates hike.
I recently raised my concerns for the hotel sector, which is facing a 20% hike in rates in Parliament. Small businesses too, many in the retail sector selling souvenirs and gifts to tourists, are being hit by big rises in business rates. They face a double blow as they rise above the threshold for the small business bonus scheme meaning they are no longer exempted from business rates.
Given that business rates were reassessed two years ago, when business was good and property values at their peak, it is clear that the new rates are inflated. With this in mind, the decision by the Scottish Government not to introduce transitional relief to ease the burden of rates rises seems particularly unfair. This has pushed up the operating costs for many businesses and I am concerned about the potential for job losses. I have been keen to support the Edinburgh Chamber of Commerce in their campaign for fairer treatment for Edinburgh businesses.
As well as concerns about the Scottish Government and the Council’s broader policy approaches to tourism, I am also concerned about the mishandling of bad decision making at a local level.
Part of Edinburgh’s draw for tourists is its beauty - the winding cobbled streets and ancient buildings of the Old Town, the cosmopolitan café culture of the New Town and the bustling communities in the West End and Leith. However, the impression of these locations is being tarnished by the ongoing waste dispute which has now been rumbling on for a year.
It is astonishing that it’s taken a year to get this dispute settled. It is simply not good enough that residents have had to put up with overflowing bins in the streets which have attracted vermin and created a smelly environment. Local residents have a right to a good quality of environment. The impression that visitors have got from this debacle is equally negative.
We need more competent, engaged leadership, nationally and locally to ensure that tourism is well managed, businesses are supported to thrive and an impression is set that the people of Edinburgh can be proud of.