Hotels set to pay under new scheme to boost city tourism

HOTELS would pay a contribution to a scheme to help boost the Capital's tourism industry under new plans set to be considered by the sector's leaders.

The Edinburgh Tourism Action Group (ETAG) has been awarded Scottish Government funding to investigate the UK's first sector-level business improvement district (BID).

It comes after the Scottish Government's tourism committee hit out at city council plans for a "bed tax" on hotels.

The move follows the publication of a report by ETAG, which brings together the findings of a two year research project investigating innovative funding solutions for the tourism sector.

Among other options considered, but rejected, were airport departure taxes and visitor levies.

The report concludes that industry feedback suggests that the creation of the UK's first tourism BID should be the way forward.

Funding worth £15,000 has now been secured by the Scottish Government to investigate whether a tourism sector BID could be launched.

Barbara Smith, chairwoman of ETAG and the executive manager of Edinburgh Castle, said: "The report is clear that Edinburgh cannot be complacent in the face of an increasingly competitive global tourism market.

"Other cities are investing heavily in the visitor experience and using a range of new funding mechanisms to do so.

"I am delighted that the Scottish Government has agreed to support Edinburgh in developing the concept of a tourism sectoral BID."

City centre businesses recently approved plans for a BID, to be called Essential Edinburgh. It will see a range of services provided, including marketing and additional street cleaning, in return for a levy paid by all firms.

A move to set up a tourism BID would have to be approved by an official ballot of firms.

Councillor Tom Buchanan, convener of the economic development committee at the city council, said: "This funding will allow ETAG to progress with plans to let Edinburgh's tourism industry take greater responsibility for its own future.

"With tourism in the city employing 31,000 people or nine per cent of the workforce and generating some £1.7 billion for the local economy, it is clear that the sector is a vital component of Edinburgh's lifeblood.

"However, if we are to maintain and improve upon our current successes we must find additional funds to invest in our tourism offering.

"A sectoral BID would not only generate new money for investment but would allow its spend to be targeted at priorities identified by the tourism industry itself."

Iain Herbert, chief executive of the Scottish Tourism Forum said: "Edinburgh holds a vital role for tourism in Scotland.

"We are facing a bleak couple of years due to the economic position and it is even more important to build strong partnerships to secure investment for the future.

"The BID route is well established and gives real possibilities to unlock potential.

"Edinburgh needs to work hard to secure its position on the world stage but this move provides excellent opportunities"