The call comes ahead of the Scottish Parliament elections in May and is a part of a series of recommendations put forward by the trade body in a new report.
Titled Serving Scotland: a manifesto for growth, the report sets out what it describes as the economic and social strength of Scotland’s hospitality sector, alongside a series of policy recommendations for the Scottish Government.
The headline recommendation is to reform the broken business rates system for good by introducing a permanently lower business rates poundage for hospitality and leisure at a rate of 30p in the pound.
According to the organisation, this can be funded in a cost-neutral way by rebalancing the burden more towards online giants.
Among its other recommendations, UKHospitality Scotland is pushing for better regulation through co-designed legislation with businesses, the appointment of a dedicated minister for hospitality and tourism, and planning reforms to streamline planning applications and support hospitality-led regeneration.
According to the report, with the right economic and policy environment in place, Scotland’s hospitality sector could create an additional 46,000 jobs by 2031, contribute a further £2.4 billion to the economy and achieve growth of 6%.
“Hospitality is a powerhouse sector in Scotland that is deep-rooted in our communities, social fabric and culture,” says Leon Thompson, executive director of UKHospitality Scotland.
“Over the next five years, hospitality has enormous potential to drive growth, create more jobs and support the economy, but it’s currently being held back by a high tax burden and overbearing regulation.
“One of the biggest barriers to growth is the broken and outdated business rates system, which punishes bricks-and-mortar hospitality businesses.
“It needs fundamental overhaul and I urge all political parties to commit in their manifestos to introducing a permanently lower poundage for hospitality, funded by rebalancing the burden towards online giants.
“Making this a manifesto commitment will be a clear recognition of the hospitality’s power to drive growth and regeneration, and I look forward to engaging with all parties on our policy recommendations.”
The report shows a continued effort to support the sector following UKHospitality Scotland’s announcement last week to increase business rates relief to 40% for licensed hospitality premises.