The Scottish Passenger Agents’ Association (SPAA) is lobbying the Scottish government for business rates parity with other parts of the UK, highlighting the contribution of agencies to local economies.
Its call comes as part of Small Business Saturday (December 4), and points out how eligible businesses in England and Wales are entitled to a 50% reduction in business rates for the 2022-2023 tax year and 75% for the 2023-2024 tax year.
Mike Tibbert, SPAA president, said: “Outbound travel is often seen to be taking spend out of Scotland and into other countries – but this is absolutely not the case.
“Our independent research shows that just one plane-full of holidaymakers spends a staggering £38,000 in Scotland before they depart.
“Scots spend in the region of £460 million here at home before holidaying in Spain alone – and that excludes the spend of those heading for the Canaries.
“But we need support from the Scottish government to continue this valuable contribution to the economy.”
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He said the Economy and Fair Work Committee at Holyrood recently published a report stating that the current business rates system “acts as a disincentive” to attracting business to town centres and to investment in occupied buildings.
The report highlights the fact that any investment in a property leads to an increase for the business in rates bills.
“If we want vibrant high streets which benefit the wider economy and not just individual businesses, then the Scottish government urgently needs to examine how businesses like our travel agent members can be supported to achieve this,” added Tibbert.
“The SPAA OnePoll Survey showed that 80% of Scots spend up to £250 on holiday items before departure.
“That’s money spent in local shops and businesses on clothing, toiletries, sunglasses, suitcases and beauty treatments.
“Add to this the value of taxi fares, spend on food and drink at the airport and duty-free purchases and it’s easy to see the sizeable benefit local travel agents bring to a wide range of local businesses.
“It’s not only holiday travel which brings enormous benefits to the Scottish economy. The value of worldwide travel to Scottish businesses which enables global trade is hugely important to Scotland’s place in international trade.”