FOUR out of five small firms are opposed to the idea of a tourism tax imposed on visitors.

A survey of almost 700 Scottish companies by the Federation of Small Businesses (FSB) found that 82 per cent were against mooted proposals to place a levy on accommodation bills.

The FSB said that the mood among firms operating in Scotland’s £9.7 billion tourism industry is even stronger, with 88 per cent of tourism businesses rejecting the proposals.

The Scottish Tourism Alliance and British Hospitality Association have also voiced their opposition to the plans.

The Scottish Government has rebuffed moves to introduce any form of visitor levy in Edinburgh, saying there are "no plans to implement any new taxes on the tourism sector which is currently subject to the second highest VAT rates in Europe by the UK government”.

It believes there are no existing legal powers for local authorities to levy a local bed tax or tourism tax.

However, some organisations in Edinburgh have called for a "bed tax" to help pay for major events and reduce the burden on the council's budget.

It had been suggested that the levy on visitors to Scotland’s capital could help plug a predicted £10m hole in festivals' finances.

Speaking about the FSB survey, Amanda Frazer, FSB’s Highlands and Islands regional chairwoman, who also runs a bed and breakfast in Newtonmore, said: “These figures are stark but unsurprising.

"Scotland’s accommodation providers don’t want to levy a tax on our visitors.”

Colin Borland, FSB’s head of external affairs in Scotland, said: “While we understand that public sector budgets are under pressure, FSB cannot support the introduction of a regressive tax on visitors.

“Tourism is a key industry for Scotland and the ambitious targets we have to increase the number of return visitors could be undermined by these proposals.”

The poll showed that while a majority of businesses in all parts of Scotland reject the idea, businesses in rural Scotland, especially in the Highlands & Islands, were especially critical of the proposals.

Marc Crothall, the chief executive of the Scottish Tourism Alliance (STA), said: “Despite tourism being acknowledged as the country’s most important industry, it is increasingly challenging for Scotland to remain competitive as a destination.

“Therefore applying a further cost to visitors is, in our opinion, not a sensible approach to take.”

Edinburgh City Council had been in discussions with Scottish and UK government about the possibility of introducing a tourism tax.

And the Scottish Tourism Alliance feared councils will press for similar schemes to be rolled out across the country if introduced in the capital.

Several Scottish politicians have suggested a new tax on visitor accommodation could help to relieve pressure on council finances.

In March, tourism minister Fergus Ewing said the prospect of a tourist tax was one of several “fiscal midges” facing the industry, along with VAT rates and air passenger duty, which are already among the highest in Europe.

But council leaders hope they will be handed new powers through a “City Deal” being negotiated at Holyrood and Westminster.

The FSB says that 86 per cent of tourism businesses said that the move would have a negative impact on their enterprise, while almost four in five members of the wider business community (79 per cent) said that the move would impact negatively on the local economy.

FSB is urging both the Scottish Government and local councils to rule out these proposals.

A spokesman for the Convention of Scottish Local Authorities, the local authority umbrella organisation, said: “What Cosla has asked for is the power to introduce discretionary taxes.

"If such a power was granted by the Scottish Government, local authorities would consult with their electorate, domestic and business to ascertain support. This is all about fiscal empowerment and doing things with communities not to them.”