CONCERN is mounting within the Scottish tourism industry over the prospect of ministers handing local authorities the power to introduce a tourist tax.

The idea has been mooted as a means for councils to fund investment in tourism infrastructure and services. One Highland councillor declared it was needed because a lack of toilet facilities visitors are put visitors off. Support for a tourist tax has also emerged in Edinburgh.

However, the Scottish Tourism Alliance has called for the idea to be debated at national level, stating that it must be viewed in the context of the high tax burden already facing the industry. It notes that the UK has the second-highest rate of VAT in Europe and is worried about the impact a further tax will have on Scotland’s appeal to visitors.

Calum Ross of the Loch Melfort Hotel said there is “no merit” in the idea, noting that in countries where a tourism tax has been introduced, such as Germany, VAT is much lower. Stephen Owen of St Andrews hotel Rufflets questioned how it would be structured: “Quite often hotels are seen as a bit of a soft target for this,” he said. “There are lots of other businesses that make money from tourists.”

Nicola Taylor, chief executive of Chardon Hotels, said the tax burden on the industry is too high, noting that the rates bill for one of its hotels in Edinburgh the rates bill is £180,000 a year .

However, Ms Taylor voiced her support for the idea of general city tax. “If you have a city tax then every company would pay it and it might actually help fund the public sector at bit more,” she said.