The British Hospitality Association (BHA) has come out fighting in response to comments made by Donald Anderson, Edinburgh Council’s tourism and culture leader, over the “hysteria” of opponents who criticised calls for a tourism tax.

The Local Government Finance Review Committee’s report on the future funding of local authorities in Scotland, had suggested that powers should be given to local authorities to introduce a tourism tax.

Mr Anderson is reported to have said that it was impossible to have a logical debate at the moment as, “Hysteria breaks out whenever a tax is mentioned.”

Bob Cotton, chief executive of he British Hospitality Association, said that the industry had every right to be concerned about a tourist tax as it would directly impact on the Scottish economy.

He said, “Scottish politicians need to live in the real world. No one owes Scottish tourism a living. Scotland is competing with every other tourist destination. If a tourist tax is imposed, it will raise prices and damage Scottish tourism at a time when it aims to increase visitor spend by 50 per cent by 2015. Some hope!”

He added, “And to say that only visitors will pay is ridiculous. It will affect every resident of Scotland who travels around the country.”

Gavin Ellis, proprietor of the Knockomie Hotel, Forres and chair of BHA Scotland, has also said that there was no justification in singling out one industry for a special tax:

Ellis said, “One of Edinburgh’s main economic drivers is tourism. What’s the sense of damaging it with a separate tax, which will only lead to fewer visitors, lower income but more form filling and more bureaucracy?”