The Centre for Cities’ report, “Spending time: the role of the visitor economy in UK cities,” provides insights into the impact of visitor spending from short-term lets and self-catering accommodations in Scotland, with a particular focus on Edinburgh. Key findings include:
Concentration of Visitor Spending:
- Edinburgh is identified as a leading destination city, attracting a significant share of visitor spending relative to its size. Visitors account for a substantial portion of in-person spending in the city, especially in sectors such as shopping and dining.
Accommodation Supply and Housing Market:
- The report notes that cities with higher visitor spending tend to have a larger per capita supply of visitor accommodation, including short-term lets. However, the impact of short-term lets on local housing supply remains difficult to evaluate due to limited regulation and data.
Tourism Taxes and Infrastructure Investment:
- To address the pressures of a thriving visitor economy, the report suggests that tourism taxes could be a tool for destination cities like Edinburgh. Revenue from such taxes could be reinvested into local infrastructure and services to support both residents and visitors. The report emphasises that the success of the visitor economy requires infrastructure investment and that planning reforms are necessary to increase housing and specialised visitor accommodations.
In summary, the report highlights Edinburgh’s significant role in Scotland’s visitor economy, the need for better data to assess the impact of STLs on housing, and the potential benefits of tourism taxes to fund necessary infrastructure improvements.
Read more here: Centre for Cities