The benefits of an independent Scotland having powers to lower VAT on accommodation and visitor attractions from 20% to 5% is being debated during Scottish Tourism Week.
MPs and trade associations including the Scottish Tourism Alliance and the British Hospitality Association (BHA), have said reducing VAT would attract more visitors and put Scotland on a level playing field with other EU nations.
Currently, VAT is controlled from Westminster which has refused to implement a cut.
Graham Wason, chairman, campaign for Reduced Tourism VAT, says: If Scotland opts for independence and subsequently cuts VAT on tourism; it would benefit significantly at the expense of the rest of the UK.
"It would also attract more visitors from abroad, so earning export revenue and improving its balance of payments. In these circumstances, the mistake by the rest of the UK in not cutting tourism VAT would be exposed."
Ufi Ibrahim, CEO or British Hospitality Association said: "Whether or not Scotland opts for independence, there is no doubt that over the medium and long term, its economy would benefit substantially from a cut in tourism VAT – and that conclusion is supported by the Treasury’s own model.
"The consequence of Ireland’s VAT cut was an increase in overseas tourist numbers and revenue which helped to create up to 25,000 new jobs."
"A tourism VAT cut has been implemented with great success in Croatia, Cyprus, France, Germany Greece, Ireland, Italy, Spain and Sweden; how is it that Westminster has not spotted it’s a good idea?
