The lack of summer sunshine this summer isn't the only challenge facing the Scottish hospitality industry this year.
As we head into the crucial summer period, with the Edinburgh Festival Season hopefully adding to the boost from Taylor Swift's Eras visit in June and the Open Golf at Troon in July, Scottish hospitality is not benefitting from the same relief from non-domestic rates available to their colleagues in England. The extension of the 75% rates relief for Retail, Hospitality and Leisure for 2024/25, which was announced for England last year, has not been followed in Scotland.
At the same time, the Visitor Levy (Scotland) Bill is continuing its progress through the Scottish Parliament. This bill will enable local authorities to apply a levy on overnight stays and may apply from spring 2026. The scheme will be operated by individual local authorities with money raised to be reinvested in services and facilities used by tourists.
Are there any bright spots on the horizon? Listed buildings have historically benefitted from rates relief when empty, but the Scottish Government has passed autonomy on rates relief to local authorities and a number of them have removed the relief. The thought of new bills landing on the doorsteps of property owners will not seem like a bright spot for them, but will this encourage the development and use of previously mothballed properties, which may be potential locations for the hospitality industry?
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