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Tourist tax

HenryLB

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I think the only argument against it is that it's largely not new, 'free' money because it'll mostly come from funds that would have been spent in local businesses because most people spend a budget in holiday. So it's really a transfer from businesses to local government. That's not to say it's undesirable, but goes some way to explaining why most small companies are not in favour.
 

Leith1975

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I’m completely in favour of it, but I’m concerned what the council will do with it. I’m prepared to bet that it won’t go on anything that we would hope it would and it won’t go on anything that will improve things for ordinary people in Edinburgh. More pointless vanity projects I’d guess.
 

Sir Shrink

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I think the only argument against it is that it's largely not new, 'free' money because it'll mostly come from funds that would have been spent in local businesses because most people spend a budget in holiday. So it's really a transfer from businesses to local government. That's not to say it's undesirable, but goes some way to explaining why most small companies are not in favour.
Do you think so?
I've paid it a time or two - can't say I cut back on a beer or grub to 'offset' it. Or indeed any holiday spending.

I'd be pretty surprised if anyone budgetted a holiday in such detail.
Maybe some student backpacking type?
 

HenryLB

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Do you think so?
I've paid it a time or two - can't say I cut back on a beer or grub to 'offset' it. Or indeed any holiday spending.

I'd be pretty surprised if anyone budgetted a holiday in such detail.
Maybe some student backpacking type?
It's not so much that they literally stick to the budget rigorously - although some obviously do - but that they tend not to spend money that they (post tax) now don't have.

Think of it this way - it's like when people say that a 1% cut to VAT won't change their spending choices. Largely it won't, but there's still hundreds of millions in their collective pockets that they wouldn't have had otherwise, and they (mostly) spend it rather than save it. The tourist tax works in reverse on a local level.
 

Hattie

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Would it not have been better as % ie small, so it balances out better? Seems the less well off as per usual paying more per se than those who will literally know no difference
 

Gareth

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It's not so much that they literally stick to the budget rigorously - although some obviously do - but that they tend not to spend money that they (post tax) now don't have.

Think of it this way - it's like when people say that a 1% cut to VAT won't change their spending choices. Largely it won't, but there's still hundreds of millions in their collective pockets that they wouldn't have had otherwise, and they (mostly) spend it rather than save it. The tourist tax works in reverse on a local level.
Ok but if a figure of, say randomly fifty million quid, is spread across the over 3 million visitors each year then the real difference to each individual visitor is pretty small no? I've not heard of spend in pubs, restaurant etc in the places its used going down?
 

HenryLB

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Ok but if a figure of, say randomly fifty million quid, is spread across the over 3 million visitors each year then the real difference to each individual visitor is pretty small no? I've not heard of spend in pubs, restaurant etc in the places its used going down?
Small businesses tend to be opposed to it, I assume because they see small reductions. I'm in favour of it but it doesn't matter how you slice it, the money can't be spent twice, and the places where it now won't be spent are likely to be pubs, restaurants etc.
 

Sir Shrink

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Small businesses tend to be opposed to it, I assume because they see small reductions. I'm in favour of it but it doesn't matter how you slice it, the money can't be spent twice, and the places where it now won't be spent are likely to be pubs, restaurants etc.
Still don't really see it that way - for me it's not about the money being spent twice, it's just about extra money being spent.
When I went to Venice I had to cough up a few euros a night - didn't affect my consumption of pasta or Birra Moretti in any way at all. Just meant a few more Euros on the credit card.
You seem to think tourists are on fixed budgets - I don't think they are at all.
Used to be a nightmare in the days of travellers cheques and no cash machines mind......... but not now.
 

WJC1848

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All for it. Paid this tax in most of the places we've been abroad. But it has to be put to good use and not just frittered away on some councillors' whims.
 

Purple & Green

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I’d probably like to see it spread more evenly across the city, but I think we have to take something back to redistribute to areas that see little benefit of tourism
 

HenryLB

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Still don't really see it that way - for me it's not about the money being spent twice, it's just about extra money being spent.
When I went to Venice I had to cough up a few euros a night - didn't affect my consumption of pasta or Birra Moretti in any way at all. Just meant a few more Euros on the credit card.
You seem to think tourists are on fixed budgets - I don't think they are at all.
Used to be a nightmare in the days of travellers cheques and no cash machines mind......... but not now.
I doubt all of it goes out of the local economy but I expect quite a decent percentage does. If VAT went up 1% it probably wouldn't affect your individual purchases much but billions would come out of consumer's pockets and not be spent in the economy. This is just the same but on a smaller scale.
 

Sir Shrink

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I doubt all of it goes out of the local economy but I expect quite a decent percentage does. If VAT went up 1% it probably wouldn't affect your individual purchases much but billions would come out of consumer's pockets and not be spent in the economy. This is just the same but on a smaller scale.
I only got as far as an SNC in Economics so that probably explains my failing to grasp it!
 

HenryLB

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I only got as far as an SNC in Economics so that probably explains my failing to grasp it!
Like I say, I'm in favour of it, I think if set low it probably won't affect demand for actually visiting. But I read that four out of five small businesses oppose it and I guess that's because they think it'll affect their revenue a bit. Maybe they're wrong though.
 

Leith1975

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I only got as far as an SNC in Economics so that probably explains my failing to grasp it!
I think the argument against it is that people will come on holiday with things like pre loaded credit cards or just cash. They will bring for example £1000 for their holiday and they won’t spend anymore. If some of that goes on a tourist tax it means it’s less that’s spent in shops and bars.
It’s not an argument that I agree with given that the maximum charge is £14. I doubt anyone budgets that carefully that they’d be down to the very last of their money by the time they go home. And as you say most people won’t come with all their money on them, they’ll use cash machines as and when they need them.
 

Green juventine

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If it goes towards up keep of the city I'm all for it but not if it's like V.A.T.
That started out as a luxury tax now it's risen to 20% and you can't even fart without it being added on.

Tourist tax has been in operation back in Italy for years think it's about 1or2 euro.
Mind you over there it'll probably go towards the upkeep of some M.Ps Testa Rossa!!!
 

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