Tsar's tax threat

By David Torrance
Copyright 2001 The Scotsman Publications Ltd.
Article date: August 21, 2001
 

A leading Edinburgh hotelier today slammed Councillor Steve Cardownie's suggestion that hotels should make a voluntary financial contribution to the city's festivals as "unhelpful and naive".

Writing in the Evening News today, Simon Williams, chairman of the Edinburgh Principal Hotels Association, said the new festivals tsar's idea was "an inauspicious start to an important role".

But Cllr Cardownie today hit back at Mr Williams' comments and criticised the "negative attitude" of city hotel leaders, warning it could force him to consider other means of extracting funds from them.

And he even hinted that if his idea for voluntary contributions was rejected, then controversial plans for a tourist tax could be revived. His comments came in an increasingly bitter war of words between Cllr Cardownie and city hotels over his suggestion they should make voluntary contributions to help finance the world's largest arts festival and its spin -offs.

Milking

Mr Williams said: "To castigate an industry that is a vital element of Edinburgh's business life without so much as an introductory meeting with its representatives is both unhelpful and negative.

"And to accuse the very people he should be working with of 'milking rewards' is frankly, naive, and does nothing to enhance relationships he is hoping will provide a positive outcome."

Mr Williams also invited Cllr Cardownie to address a meeting of the EPHA - an association for 44 of Edinburgh's principal hotels - to "enlighten us on his views and plans for the future".

But Cllr Cardownie responded angrily to Mr Williams' remarks. He said: "If it's naive to think that because hotels are doing very well at the moment that they should make a voluntary contribution, then I plead naivete.

"But it's this negative attitude that seems to prevail whenever we ask for a voluntary contribution. It might even leave us with no choice than to look at other alternatives.

"All we're asking is for a bit of common sense to prevail. Since this issue has raised its head again - and I think it's good that it has - a lot of people have told me they support the idea."

Cllr Cardownie said he would not have any "worries" about addressing a meeting of the EPHA. He said: "I would also want to invite Mr Williams to address a possible meeting of people associated with the various festivals to explain why he feels hotels shouldn't make a contribution.

"If it turns out that Edinburgh's hotels are implacably opposed to the idea of voluntary contributions then it will be back to the drawing board. We either abandon the whole concept or we could revive the idea of a tourist tax."

The city council floated the idea of a tourist tax - where visitors to the city would be charged extra on their room rates - in the mid 90s, but it was dropped due to "technical difficulties".

Mr Williams said he also took issue with Cllr Cardownie's claim that hotels hiked room rates during the festival season.

He said: "This is not the case. Most hotels produce tariffs which, during peak time, they stick to and when business is slow they offer lower rates or added value.

"Look in any holiday brochure and try to get a March rate in August. This is basic business sense. But a few hotels, and I think they are in the minority, do have an August tariff. No hotelier in our association will dispute the benefit gained from the festivals. The same is the case with the conference trade that major venues such as the Edinburgh International Conference Centre bring.

"The EPHA works well together with conference organisers to co-promote and meet expectations of the visitor - they recognise they can't function without the accommodation providers in the city."

Mr Williams is also managing director of The Town House Company which includes The Bonham, The Howard and Channings hotels.
 

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