SCOTLAND’s tourism industry has warned the SNP’s updated plans to require Airbnb-style short-term let properties to obtain a licence have “fundamentally failed” to address its concerns.
The Scottish Government has published its updated plans, which have been put out for another round of consultation, to require owners of short-term let properties to be licensed form their local council or face a penalty of up to £50,000.
The proposals were withdrawn before the election amid fears over traditional B&Bs being swept up in the legislation despite an initial consultation stating they would be exempt.
But business leaders in the tourism sector have criticised the updated plans, published as Holyrood shuts down for the summer recess, that will still require traditional B&B owners to secure a licence in order to operate.
READ MORE: SNP confirms short-term lets licensing delay as opt-out plans drawn up
After the proposals were paused by then housing minister Kevin Stewart, tourism and business leaders held discussions with officials to iron out issues.
The Association of Scotland’s Self-Caterers (ASSC) tabled plans to allow businesses that met health and safety standards to opt out of the licensing scheme in favour of a simplified registration scheme, overseen by Visit Scotland – but ministers have confirmed the plans have been rejected.
Fiona Campbell, chief executive of the ASSC, said: “The Association of Scotland’s Self-Caterers and other tourism stakeholders engaged constructively with the working group on short-term lets to find solutions to the concerns raised in the last parliamentary session regarding the licensing order which was widely regarded as unfit for purpose.
“Unfortunately, the updated proposals do not strike the appropriate balance and only contains minimal changes. Contrary to commitments made, it has fundamentally failed to address the concerns of the tourism industry – and this is at a time when many businesses have been struggling due to the impact of Covid-19.”
She added: “An onerous licensing scheme is the last thing our sector needs at this challenging time. Our survey work demonstrates that around half of our self-catering operators would close their business if this came to fruition.
“It is not too late for the Scottish Government to change course and back Scottish tourism for a sustainable recovery. Our proposals for a mandatory registration scheme, which crucially addresses health and safety issues, will help to secure the Scottish Government’s policy objectives in a more cost-effective and proportionate manner.”
READ MORE: Airbnb regulation 'will put thousands of rural jobs at risk'
A spokesman for Airbnb added: “Airbnb has long called for clear rules that work for everyone in Scotland but we share concerns with the tourism industry that these specific proposals are too complex, costly and bureaucratic.
“That is why the tourism industry has put forward clearer proposals that will achieve the same goals while supporting local families and helping accelerate Scotland's economic recovery. We remain committed to working with the Scottish Government through its consultation to ensure we get this right.”
Under the revised plans, bothies and some agricultural and crofting tenancies are now exempt – while local authorities can exempt premises from the requirement “for a particular occasion or for up to six weeks each year”, potentially saving owners who rent out properties during the festival season in Edinburgh from needing to obtain a licence, subject to rules set by Edinburgh City Council.
But traditional B&Bs will not be exempt under the updated plans and the ASSC’s registration plans have been discounted because they “would make the arrangements more complicated”.
Scottish Conservative local government spokesperson, Miles Briggs, said: “Before the election, the SNP finally listened to lobbying from the Scottish Conservatives and tourism businesses to ditch these plans.
“However, we warned at the time they were only kicking the decision into the long grass. They have now brought back these misguided proposals and snuck them out after parliament has broken up for the summer recess.”
He added: “They are clearly trying to avoid proper scrutiny on this issue. SNP ministers must fully engage with the industry in the coming weeks and listen to their serious concerns.
“The Scottish Conservatives are committed to standing with the sector to stand against these proposals, which are unworkable in their current format.”
The third round of consultation will run until August 13.
Under the proposed legislation, councils will now have until October 1, 2022, instead of the original April 2022 date, to establish a licensing scheme, with all short-term lets to be licensed by April 1, 2024.
READ MORE: Airbnb-style short-term let control zones approved by MSPs
Existing hosts and operators must apply for a licence by April 1, 2023.
Social Justice Secretary Shona Robison said: “Regulation of short-term lets is vital if we are to balance the needs and concerns of our communities with wider economic and tourism interests.
“Short-term lets can offer people a flexible and cheaper travel option and have contributed positively to our tourism industry and local economies across the country.
“However, we know that in certain areas, particularly tourist hotspots, high numbers of short-term lets can cause problems for neighbours and make it harder for people to find homes to live in.
“By allowing local authorities appropriate regulatory powers through a licensing scheme, we can ensure that short-term lets are safe and address issues faced by local residents and communities.
“It will allow local authorities to understand more fully what is happening in their areas and assist with the effective handling of complaints.”
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