Press Release: Edinburgh Self-Caterers Threatened by “Perfect Storm” of Regulations

Self-catering business in Edinburgh are being sent into a “perfect storm” of damaging regulations, the Association of Scotland’s Self-Caterers has said.

The warning from the trade body representing the sector comes as City of Edinburgh Council prepares to consider evidence submissions for a short-term let control zone for businesses in the city.

The ASSC has made its submission to the Council and has expressed its hope that councillors will take it into serious consideration.

Despite not being anti-regulation, the association has warned that the combination of City of Edinburgh Council’s suggested city-wide control area and the Scottish Government’s impending licencing scheme threatens to “throttle the life” out of small businesses across the area.

Rather than impose further damaging restrictions, the trade body has argued that policymakers should focus on creating a business-friendly environment to encourage post-COVID economic recovery in the city.

Self-catering and short-term lets generate £70million each year for the Edinburgh economy and play a vital role in the capital’s world-renowned tourism offering.

The association also criticised policymakers for so far failing to take evidence-based decisions and for ignoring the detailed testimony of experts in the sector.

Throughout the public debate on regulating self-catering, the ASSC has consistently argued for sensible, proportionate, and effective regulations and has presented detailed proposals for a mandatory registration scheme that works for all.

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“Hardworking and conscientious self-catering businesses are facing nothing short of a perfect storm of regulations, which threatens to derail our businesses and cost us our livelihoods.

“If put in place, a city-wide control zone and a licencing scheme would throttle the life out of our sector and cause irreparable damage to Scotland’s tourism offering.

“However, there is still time for policymakers to do the right thing by listening to our sector and create an environment that will help us survive, recover, and thrive in the post-COVID environment.”

Scottish Business News, Edinburgh self-caterers threatened by perfect storm of regulations, 05/11/21

Tourism Bodies Back Highland Council Opposition to Short-Term Let Licensing

Three leading Scottish tourism organisations have welcomed a motion passed by Highland Council in support of Scotland’s self-catering sector.

The Association of Scotland’s Self-Caterers (ASSC), Scottish Land and Estates (SLE), and the Scottish Bed and Breakfast Association (SBBA) have all expressed their thanks to councillors who passed the motion, which urges the Scottish Government to ditch its planned licensing scheme for self-catering.

Specifically, the motion calls for the government in Edinburgh to instead adopt the ASSC’s proposed mandatory registration scheme, dismissing the SNP’s plan for licensing as “not appropriate for the Highlands”.

Councillor Gordon Adam, who spoke in favour of the motion, criticised the Scottish Government’s plans for a licensing as being unfair, costly, and especially unfit for purpose in the Highlands.

The motion passed by 20 votes to 18 at full council.

Leaders from all three organisations have come together to congratulate the council on a spirited debate and on showing its support for Scottish tourism.

The short-term letting and wider tourism industry has repeatedly called for the Scottish Government to listen to expert industry concerns and to opt for a more flexible, proportionate, and business-friendly registration scheme.

Scottish self-catering is a vital part of the country’s world-famous tourism offering and the Highlands are well-renowned as having some of the most stunning and welcoming places to stay.

If licensing was brought in, especially in the context of the COVID-19 pandemic which has decimated the industry, there is the real possibility that many small businesses may see their livelihoods threatened.

The ASSC, SBBA, and SLE all reiterate their thanks to Highland Council for taking this principled stand and look forward immensely to continuing to work with them as valued stakeholders and partners.

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“At a time when business across Scotland, especially those of us in tourism, are focused on recovering from COVID-19 and getting people back through our doors, it is completely risible that the administration in Edinburgh would think about trying to hamper our recovery with such a punitive and restrictive scheme.

“Thankfully, cooler heads appear to be in charge in the Highlands and I’m delighted to be able to thank Highland Council for passing this motion that shows their support for us.

“Self-catering properties in the Highlands offer some of the best holiday experiences in the country and it’s great to know that local government in the area supports us in what we do.”

Scottish B&B Association Chairman, David Weston, said:

“Family-run B&Bs and guesthouses are a cornerstone of Scotland’s tourism offer, and a vital contributor to the fragile economies of our rural and coastal communities, highlands and islands.

“So we hugely welcome Highland Council’s backing for our call, alongside ASSC and others, to the Scottish Government to drop the licensing scheme as currently proposed and instead adopt a low or no-cost, light touch accommodation registration scheme, as we have been suggesting since 2017.

“That would enable the Scottish Government to meet its objectives in protecting consumer safety, level the playing-field between compliant businesses and new operators on platforms, yet at the same time avoid the cost and burdens on microbusinesses which the current proposals represent.”

Commenting Scottish Land & Estates Policy Adviser, Simon Ovenden, said:

‘’We are happy to see a practical and proportionate response from Highland Council on the issue of short-term lets legislation.

“We hope that the Scottish Government listens to Highland Council as it is local authorities across Scotland who will be responsible for implementing the national regulations.

‘While we recently welcomed the Scottish Government recognising the collective call of stakeholders including SLE to have a serious reassessment of its short-term lets proposals, there remains outstanding issues and we are looking forward to meeting with the Cabinet Secretary soon to find a workable solution for all and ensure that rural needs, including those in the Highlands, are fully met.’’

Industry support was also indicated by the following release from David Richardson from FSB Scotland to Highland media:
FSB Scotland and the Association of Scotland’s Self Caterers (ASSC) welcome a decision taken at a full meeting of Highland Council today to support a motion calling on the Scottish Government to drop its short-term holiday lets licencing scheme proposal and replace it with the registration scheme proposed by the ASSC.
 
The ASSC has extensively researched the likely consequences of the proposed Scottish Government scheme on the Scottish economy and has been lobbying hard . It has also been involved in many discussions with the FSB and other interested parties.
 
Before today’s debate, the FSB wrote to senior Highland Councillors drawing attention to some major concerns regarding one of the basis premises used to justify the scheme and requesting that they support the motion.
 
David Richardson, the FSB’s Highlands & Islands Development Manager, said:
 
“There is an absolute need for more affordable accommodation in many parts of the Highlands to house workers and their families and to help reverse the region’s aging and declining population, and this is something that the FSB has been highlighting for some years. However, there is absolutely no evidence to suggest that this new licensing scheme will do anything to help bring this about.
 
“Instead, licences will merely place yet another financial burden on hard-pressed tourism operators, and if some are forced to give up as a result and sell their properties, it is highly likely that these will be snapped up as second homes by people who can easily afford to outbid locals. Fewer accommodation businesses would inevitably lead to reduced visitor footfall and, much more importantly, reduced visitor spend in fragile communities. 
 
“The ASSC’s registration scheme will ultimately achieve a key aim for the Scottish Government without damaging our visitor economy. It’s the right way forward.”

Editor’s Notes

The full text of the motion reads:

“Council strongly urges the Scottish Government to drop its proposed licensing scheme for short-term holiday lets and instead adopt the registration scheme proposed by the Association of Scottish Self Caterers. This would be far less costly for operators and less onerous for the Highland Council to administer, whilst providing proven health and safety protection. The proposed scheme is not appropriate for the Highlands.”

ASSC press release coverage

Press Release: Self-Catering Worth £867m to Scotland

The self-catering sector is worth £867million each year to the Scottish economy, a new report has found.

Economic Impact of Self-Catering Sector to the Scottish Economy has shown that in 2019 the 17,794 traditional self-catering properties across Scotland not only generated £672million in economic activity but encouraged visitors to spend £867million, thereby benefiting other related businesses in tourism and hospitality.

The report, carried out by the specialists at Frontline and commissioned by the Association of Scotland’s Self-Caterers (ASSC), also found that short-term letting in Scotland supports 23,979 full-time equivalent jobs.

Figures were taken from 2019 in order to understand how the sector, which has been battered by the COVID-19 pandemic, performs under normal circumstances.

Self-caterers have faced significant financial problems throughout the pandemic, with many operating at hugely reduced capacity and others facing the prospect of having to close their businesses entirely.

In 2020, due to Covid-19 restrictions, there was a £253 million plunge in guest spend and a drop in the total economic contribution the sector made of around a third (29%).

This underlines the need for government to support small businesses as they seek to recover from Covid-19.

Frontline also partnered with the Professional Association of Self-Caterers and SuperControl to produce similar figures showing the state of self-catering across Great Britain.

Their in-depth research discovered that the self-catering sector is worth £2.6billion to the British economy and supports 69,635 jobs across the United Kingdom.

The new figures cast further doubt over the Scottish Government’s plans for a licensing scheme, which threatens to irreparably damage the vital sector and hamper its ability to help Scotland’s tourism offering recover from COVID-19.

Rather than introducing licensing, which would jeopardise the £867million contribution self-catering makes to the Scottish public coffers, as well as many of the tens of thousands of jobs, the Scottish Government should consider listening to the sector’s exemption proposal.

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“We already knew that self-catering is an essential part of Scotland’s vital tourism industry, but this report goes to show how significant our contribution is.

“Our £867million contribution to Scotland’s economy is indicative of the professionalism, entrepreneurial ethos, and drive that has made our sector a key pillar of Scotland’s world-renowned tourism offering.

“These figures make the Scottish Government’s continued willingness to thrust a damaging, counter-productive, and badly designed licensing scheme onto our businesses even more baffling.

“One thing is for sure, if the government is to rely on our huge contribution to the Scottish public purse, the last thing they should do is cripple our sector in this way.

Economic Impact Study –Scotland Report

Economic Impact Study-UK Report

Press Coverage

Scotsman, Calls for licensing exemption as report reveals self-catering sector worth £867m to Scottish economy, 27/08/21

Edinburgh Evening News, Calls for licensing exemption as report reveals self-catering sector worth £867m to Scottish economy, 27/08/21

Press & Journal Self-catering sector worth £867m to Scottish economy – government urged to make licensing exemption, 27/08/21

Dumfries and Galloway Standard