Regional focus
open in the multi-use project located in the Old Jenners Store,” he adds. “Traditionally in Edinburgh, I think that is has been independent brands or independent hotels,” explains McPherson. “Big five-star hospitality, such as the Peninsula or the Mandarin or Rosewood, Raffles, they are still a way off from coming here – they’re still focused in big cities like London. So, at the moment Rocco Forte hotel fulfils that role of five-star luxury in that smaller northern capital.” With independent and luxury hotels making up the hotel market in Edinburgh, guests are undeniably drawn to the “destination within the destination city”.
A highland fling?
Despite the global pressures, Scotland and Edinburgh have maintained its popularity among tourists and gained interest among investors. “Edinburgh has stayed in the top spot of our ranking thanks to its appeal as a popular leisure destination and secure underlying market fundamentals for investors,” added Marc Finney, head of Colliers hotels and resorts, in a Colliers report.
“The city benefits from a highly qualified workforce and a strong economic potential, therefore, many businesses look to expand or set up a new presence there,” said Douglas McPhail, head of Scotland for Colliers on its H2 2022 report. Ranked second in Colliers Top UK Resident Investment Cities report, it is no surprise that it places so high when the report lists it as “a compact city that can be discovered on foot and offers a unique blend of world-leading heritage, arts, and architecture.” The city is not without its challenges, however, as Colliers’ latest Scottish Snapshot in 2023 reports there may soon see a decline as investment into Scottish commercial property has seen a 33% decline below the five-year quarterly average of £500m to £330m in Q3 as a result of the global financial market. “Scotland has been hit by the same market forces as the wider UK and Europe; stubbornly high interest rates coupled with inflationary pressures,” explained Olivier Kolodseike, director in the research and economics team at Colliers. While Castle Rock still presents plenty of opportunity, visitors to the capital face another hurdle in the form of an additional charge to their hotel bill. Coming 2026, the city council will introduce a tourism tax to help meet the capital’s growth. “They need to be really careful with the tourist tax they’re bringing in because to add another 5% or 10% onto somebody’s bill, that’s a big chunk of cash,” warns McPherson over the proposed tourism tax. While a good thing, McPherson stresses, it is important to consider how it is reinvested into the economy and that it is spent in the right way so it does not become a burden for hotels and tourists
Hotel Management International /
www.hmi-online.com
alike. As the first city in the UK to introduce a full-scale tourist tax – compared with Manchester’s £1-a-night charge for 74 city centre hotels – Edinburgh’s proposed tax is expected to levy up to 4% on all overnight accommodation from hotels, hostels to B&B and campsites and estimated to raise between £5m and £35m a year depending on the final tax model.
While this tourism tax is not expected to come into play until early 2026, and slated to support sustainable visitor economy, some are concerned that the additional funding will simply plug a hole in the council’s finances. “The sector is ready to play its part in the opportunity that the new tax presents. But so much will be in the detail – what will be the governance of the process, how transparent will the spending be, who will be accountable for that spending?” asked Donald Emslie, chair of Edinburgh Tourism Action Group on the proposed levy. Over tourism is a major challenge facing Edinburgh, and it is up to the hospitality industry to share the benefits of tourism to the area and locals. “The local governments and local council need to appreciate the industry and what it brings to Scotland,” adds McPherson. “And our industry needs to engage with the community and show the benefits that we bring to the city as well as having support from the government and council to be able to help us do that.” One of the main reasons Edinburgh is such an interesting and beautiful city to visit can be found in the cultural history that the capital offers, but the size and population cannot sustain the number of activities without support, McPherson stresses.
As a constantly evolving hospitality landscape with a rich culture and beautiful landscape, Edinburgh is well positioned to exceed expectations in the coming future, but it is essential for the hospitality industry and local community to work together to meet guest expectations of this historic capital. ●
17
The Balmoral Glamis Suite is named after Scotland’s most beautiful castle and evokes the majesty of its namesake in every design detail.
The Balmoral
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