SNP's Airbnb tax will wipe £133million from the economy

SNP’s Airbnb tax will wipe £133million from the economy and threaten the livelihoods of 7,000 people

  • Murdo Fraser wrote to the Wellbeing Economy Secretary to warn of the impact

An Airbnb licensing scheme will wipe £133million from Scotland’s economy and threaten 7,000 jobs, ministers have been warned.

The Scottish Government wants to force homeowners who rent out their properties to go through a costly and complex licensing process.

But Tory tourism spokesman Murdo Fraser has warned of the ‘negative impacts on tourism and the wider Scottish economy for years to come’.

In a letter to the SNP Wellbeing Economy Secretary Neil Gray, Mr Fraser said Scots who used to let out their homes are now quitting the market over the measures.

A recent survey of small accommodation providers by the Association of Scotland’s Self-Caterers (ASSC) found 61 per cent of more than 1,200 who responded planned to give up within the next year.

Murdo Fraser (pictured in Edinburgh in 2019) has warned of the ‘negative impacts on tourism and the wider Scottish economy for years to come’

Analysis by the ASSC suggested the likely cost to the economy could be around £133million, with the livelihoods of more than 7,000 Scots jeopardised.

Property owners have until the end of October to register for the short-term let licensing scheme. 

They will need to take out building insurance and have energy performance ratings in place, in addition to many other requirements. 

The Scottish Government expects all Airbnb-style properties to be licensed by next July.

In his letter to Mr Gray, Mr Fraser said unintended consequences of the policy are ‘causing real difficulties in what is a crucial sector of the tourist economy, with many existing providers opting not to continue with letting due to the expense and bureaucracy’.

In a letter to the SNP Wellbeing Economy Secretary Neil Gray (pictured in April), Mr Fraser said Scots who used to let out their homes are now quitting the market over the measures

Commenting on the warning, Mr Fraser said the scheme ‘endangers the wider Scottish economy by restricting the accommodation available for tourists and those visiting for other reasons’.

A Government spokesman said the policy tries to ‘strike a balance’ between the economic and tourism benefits of short-term lets. He added: ‘Visitors coming to Scotland can already expect to see the benefits of properties being licensed and required to meet specific standards.’

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