To ask the Scottish Government what its response is to the report, “Economic Impacts of Short-term Lets in Scotland”, specifically in relation to the Scottish Borders. (S6O-04246)

Tourism is an important part of Scotland’s economy. The short-term let market, which has grown significantly in recent years, makes a strong contribution, as is highlighted in the report.

We continue to work with the sector and local authorities to build Scotland’s reputation as a high-quality tourist destination, while balancing demand for homes during a time of housing emergency, by introducing regulations to safeguard guests, allocating an additional £2 million in funding to tackle empty homes, and providing £4 million for tourism infrastructure and £2 million to encourage visits to more of Scotland’s national attractions, all of which is furthering our national tourism strategy, as set out in “Scotland Outlook 2030: Responsible tourism for a sustainable future”.

The Scottish National Party Government has its priorities all wrong, because short-term lets such as self-catering generate £34 million and support 1,100 people in the Borders alone, while having a negligible impact on housing markets. In contrast, empty homes, of which there are almost 2,000 in the Borders, outnumber self-catering properties and offer no economic benefit.

Does the Minister agree that the Scottish Government must do more to support Scotland’s £1 billion self-catering industry and should refocus its efforts on tackling economically inactive empty homes to get more people into them?

I already highlighted the additional £2 million for this year and the work that the Scottish Government has done to deliver 11,000 empty homes back into use in recent years. We continue to focus on that, but it is important to achieve a balance. You are right to mention empty homes but I do not share your view of the impact of the licensing scheme on tourism. We must look at the benefits that hosts and operators get from the scheme, such as being able to promote safe and high-quality businesses. We do not want to see hosts leaving the sector, but there is a range of factors to consider.

We have been supporting tourism. Through VisitScotland, we have pulled together an expert group to review the implementation of the scheme and that group will continue advising us on the issue.

Rachael Hamilton it is right to say that we should value the sector, especially in areas such as the Scottish Borders, but balance is important. We must ensure that there are sufficient homes for workers to be able to service the industry in order to keep it thriving. Does the Minister think that control areas—which I support, although I do not support licensing—were designed with the east neuk and St Andrews in mind when the scheme was being put together?

Mr Rennie makes an important point. Short-term let control areas were brought in separately to the licensing scheme and allow planning authorities to consider the impacts on the amenity and character of areas with high concentrations of short-term let accommodation. It is up to local authorities to decide whether to designate the whole authority or, as you suggested Mr Rennie, to apply it to much tighter areas, such as those you mentioned in your question.

Please speak always through the chair, Minister.