§ Mr. Teddy Taylorasked the Secretary of State for Scotland if he will estimate the likely financial effect on the tourism industry in Scotland of the decision to impose a new television licence arrangement for hotels.
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§ Mr. John MackayThe regulations which the Government shortly intend to bring forward will allow each hotelier to install television sets in up to 15 guest rooms on payment of a single standard licence fee. A further single licence fee will be payable in respect of each additional five rooms above that figure.
The absence of accurate figures for the actual number of television sets in Scottish hotels makes it difficult to estimate the likely cost to hoteliers overall, but the following table may serve as a guide:
- A hotel with 15 rooms with television will pay £46*
- A hotel with 50 rooms with television will pay £368
- A hotel with 100 rooms with television will pay £828
- A hotel with 300 rooms with television will pay £2,668.
- * Standard licence fee.
Approximately 66 per cent. of Scotland's hotels have 15 or fewer bedrooms and around 82 per cent. have 25 or fewer bedrooms. Well over half of Scottish hotels will not, therefore, require to purchase any additional television licences. Assuming an occupancy rate of 50 per cent., a hotel with 25 bedrooms could meet the additional charges by increasing its rooms rate by about 2p per room per night. A hotel with 100 rooms with television might recover the additional costs by an increase in room rate of just over 4p per room per night.