Analysts have predicted a £133m hit to Scotland’s tourism economy because of waves of regulation brought in by the SNP, and warned it could be a sign of things to come in England, following the Levelling Up Secretary’s let crackdown last month.

In England, Gove is currently consulting on changes which would force new short-term let owners to obtain planning permission, often at significant cost, and require all short-term let owners to join a fee-paying register.

Licensing and planning permission rules have already been introduced in Scotland to curb tourists’ reliance on sites such as Airbnb and Booking.com, which the Scottish Government argues has pushed up rents and house prices.

In October 2022, Scotland introduced a licence requirement for new short-term let owners which also requires them to pay an annual fee.

Existing short-term let property owners have until October this year to comply, after the deadline was extended from March 2023.

In the City of Edinburgh, the Scottish Government has also introduced a blanket-wide “control area”. 

But the cost is a major hit to tourism income. A study by independent consultancy BiGGAR Economics, and commissioned by Airbnb, reported last year that the Scottish tourism economy could take a £133m hit and lose 7,000 jobs due to the Government’s new rules.

The typical host in Scotland on Airbnb shares their entire home for less than three nights a month and earns around £6,000 a year. Experts warn similar economic damage could occur in England if strict new rules are brought in.

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