The trade body representing the hospitality industry has claimed a tourist tax will further disadvantage a UK hotel sector already struggling to keep pace with performance across the rest of Europe.
UK Hospitality said new data demonstrates the Scottish capital plan for a Transient Visitor Levy will disadvantage hotels in the marketplace.
The body earlier warned the tax could cost Scotland £175 million in lost business including potentially £45m in Edinburgh alone.
Its claims its data shows that despite a positive monthly change in revenue per available room (RevPAR), UK hotels are suffering the effects of a difficult operating environment compared to their EU counterparts.
Read more: 70% of firms back Edinburgh tourist tax, chamber study finds
Whilst there are positives listed for the UK, with a RevPAR increase of 6.9 per cent, the year to date figures are said to provide concern when set as a key measure of profitability, the average daily rate (ADR).
The UK reports a 1.1% increase ADR year on year , but with a European average of 2.7%, it is lagging behind some of its major competitors, the trade body added.
The figures were relvealed ahead of the close of Edinburgh's consultation on a tourist tax.
Willie Macleod, UK Hospitality’s director in Scotland, above, said the figures "should be a real cause for concern".
He said: "Scotland’s hotel market is already a major contributor to the economy and any introduction of a tourist tax is clearly a move that will add another unnecessary pressure.
"Whilst we experienced a good summer, we cannot compensate the overall performance with a few positive months.
"Couple this performance with the already existing disproportionate VAT system, it is clear that we are not creating an environment of success for our hotel sector.
"What is evident is that cost pressures, uncertainty and the introduction of more taxation will not translate through into revenue and profit for our hotel industry."
Read more: Tourism groups hit out over visitor tax proposals
City of Edinburgh Council is consulting until Monday on its £2 per person per night charge for visitors to the city which it says would raise around £11m a year.
Adam McVey, council leader, above, said in response to the report: "All the evidence we have points to the opposite.
"Paris, Berlin, Rome, New York – all of these cities operate some form of tourist tax and all of them remain hugely popular visitor destinations.
"Tourism is a key part of the Edinburgh and Scottish economy as is the hospitality sector and it is in all of our interests to support this growth.
"But we also think it fair that tourists, along with residents, contribute to the continuing success of this city.
"Two independent studies, one conducted in the peak festival season and another during the quieter autumn months, demonstrate that tourists and residents overwhelmingly agree and, critically, that a tourist tax in Edinburgh would not deter visitors."
He added: “The strength of Edinburgh’s appeal as a tourist destination and the continued growth of the sector is evidenced by the 1,500 additional hotel beds we have in the city over the last year and the 60-plus hotels which are in the pipeline."
The UK Hospitality analysis included data collated from the MKG Hotrec Europe October report.
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