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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 18 September 2025
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Displaying 918 contributions

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Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

You can decide between yourselves who would like to answer.

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

In every area where a levy has been proposed, has an assessment of the elasticity of demand been made?

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Is that part of the consideration in Highland Council? I do not know what is being proposed but will there be an assessment of, for example, what percentage difference a 1 per cent increase in price would make to demand? Is that something that is being attempted?

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I am probably abusing my position as convener very early on in my tenure, but I will make the brief observation that, as a business owner, if I were to put my prices up by 5 per cent at my instigation, I absolutely would be making a forecast on what that would do to my revenue. It may be a difficult calculation, but it is one that I would expect to be done. If local authorities are saying, “We are going to put our prices up by a certain percentage,” I would expect them to assess what that would do to demand and to revenue. I think that that is a fairly fundamental business assessment and if businesses would be making that assessment, I think that local authorities should be making it.

Murdo—do you have any more questions?

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Fantastic. We have questions from Willie Coffey next.

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Kevin Stewart, would you like to ask questions?

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

I understand. It is a fraction of a percentage.

On the percentage collection issue, VAT—I have made this point in a private briefing about the City of Edinburgh Council—is a non-trivial tax to collect. A lot of verification is required. If we consider hotel accommodation, there are a lot of different components to that that go beyond the provision of accommodation. There are fine-dining experiences in which the cost of the accommodation is probably less than half of the total bill that is paid. What prevents a bed and breakfast provider, for example, from saying, “We don’t charge for our accommodation. We just have a £100 breakfast that we provide in the morning”? How would you prevent that from happening?

12:15  

More broadly, the verification that is required to audit the books to ensure that each room rate has had the 5 per cent levy applied correctly is quite complex, certainly as compared with simply totting up the total number of nights of occupancy and then multiplying that by a flat fee.

What stops abuse and, more important, how will verification take place? It strikes me that that is a non-trivial issue.

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Determining that is quite complicated, is it not?

Economy and Fair Work Committee [Draft]

Tourism

Meeting date: 3 September 2025

Daniel Johnson

Okay. I will leave my questions there. I thank the witnesses for their contribution.

12:20 Meeting continued in private until 12:35.  

Economy and Fair Work Committee [Draft]

Interests

Meeting date: 3 September 2025

Daniel Johnson

I thank the deputy convener for taking care of that so efficiently. That brings us to agenda item 2. Stephen Kerr is a new member of the committee, and I invite him to declare any relevant interests.