Results of a survey of hoteliers conducted by the Scottish Tourism Alliance indicate that despite the present weakness of the GBP against the euro and other world currencies, taxes and overhead expenses are limiting hoteliers' profits and their ability to invest for future growth.

Other problems mentioned include unfair competition from VAT-exempt short-term-rental properties, and increasing commissions being charged by booking services.

The introduction of a tourist tax as currently proposed is seen as reducing Scotland's competitiveness as a destination.

An STA spokesperson said:

“With the inference in numerous media reports that our tourism industry is thriving and well able to absorb a tourism tax, we believe it is necessary to counter this view with evidence that shows the economic reality for tourism businesses.”