Aberdeen City & Shire Hotels Association has hailed the potential for an Aberdeen visitor levy - frequently referred to as a "tourist tax" - to benefit both visitors and locals alike.
Aberdeen councillors are set to vote on the potential introduction of a 7% levy at a committee meeting tomorrow.
If backed, the scheme, which follows similar projects in Edinburgh and Glasgow, would advance to a consultation stage.
Now, Frank Whitaker, chair of the Aberdeen City & Shire Hotels Association (ACSHA), spoken out on the possibly levy, saying that while ACSHA was initially against the legislation, following several engagement sessions with council officials, he now feels a levy "has the potential to be a positive economic growth lever".
He said: “It is fair to say that ACSHA lobbied hard against legislation for a visitor levy, including giving evidence to MSPs in Holyrood.
"However, the Scottish Government passed the legislation that enables local authorities to raise funds locally so ACSHA faced a choice to either be obstructive and risk a poor scheme, or to understand that we have a responsibility to engage with the local authorities to develop effective and strategic schemes that support regional economic growth.
“Aberdeen City Council officers held five industry engagement sessions when preparing the paper that is before the Finance and Resources Committee on February 12.
"These sessions represented a broad range of stakeholders in the visitor economy, including ACSHA, VisitScotland, VisitAberdeenshire, Aberdeen Inspired, Aberdeen Performing Arts and P&J Live. The paper reflects that officers listened to the industry view on where we are economically and how to support improvement in the years ahead.
“Globally recognised CoStar benchmarking indicates that Aberdeen city centre’s hotel revenue in 2024 declined by 6.2% compared to 2023, with average daily rates in decline by 4.2%.
"Meanwhile, costs have aggressively risen, with more to come in April when Employers’ National Insurance Contribution increases will impact on not just employers’ payroll costs, but will also push the price of goods above inflationary levels. This squeeze on profitability risks the security of jobs and investment.
“Aberdeen is a more affordable destination than the central belt or Inverness. The percentage levied for all visitors, be they corporate travellers, leisure or business tourism, should be viewed in the context of how much all visitors will pay in Aberdeen compared to the higher actual cost of a lower percentage in those more expensive destinations.
"It should not make Aberdeen an uncompetitive destination but support revenue growth in the visitor economy. In this context, in Aberdeen, the visitor levy has the potential to be a positive economic growth lever at a time when the regional economy is in transition.
"This is reflected in the recommendation in the paper before elected members that 63% of levy funds raised are ring-fenced for economic growth and competitive advantage.
"If correctly invested, the visitor levy has potential to drive economic growth, support the Regional Destination Strategy and support the inward investment attractiveness of the destination, benefitting not just all types of visitors to Aberdeen but Aberdonian residents as well.”