Tourism
Visitor Levy
On the 28 May 2024 Members of the Scottish Parliament passed the legislation which gives local authorities in Scotland the ability to introduce a levy on visitors staying in overnight accommodation.
The Visitor Levy (Scotland) Act received Royal Assent and became an Act on the 5 July 2024. To find out more information about the legislation process associated with the levy, visit the Scottish Parliament Website.
The Act sets out the framework in which visitor levy schemes in Scotland must be prepared and operated. Amongst other things, it includes the following
- The levy must be based on a percentage of the cost of an overnight stay in some types of accommodation, with the rate set by the local authority.
- Accommodation providers will be responsible for collecting the levy from overnight visitors.
- The local authority will have to consult on the outline of the levy scheme with local communities, businesses, and tourist organisations before introducing a levy.
- Money raised by the levy must be used to develop, support or sustain facilities and services used by predominately by business and leisure visitors.
- Exemptions are given for certain groups, including those receiving disability benefits and asylum seekers. It is for local authorities to determine whether to introduce other exemptions.
- Local authorities implementing a levy must establish 'visitor levy forum' to advise on matters relating a levy
- The levy scheme must be reviewed no later than three years after it is implemented.
Statutory guidance is also being prepared by VisitScotland which will provide further parameters and is expected to be published in early September.
Our plans to introduce a levy
We have been actively exploring the introduction of a visitor levy since 2018. Following an extensive consultation in 2019 - in which 6,600 residents, businesses and visitors responded.
Following the results of the consultation we agreed to the principle of implementing a visitor levy in Highland as means of securing investment for the sector and helping Highland become more resilient and sustainable.
This is reflected in the visitor levy being identified as a priority action within the Council's Programme 'Our Future Highland 2022-2027'.
View The Tourism Levy Consultation
The Council is currently aiming to introduce the levy at the earliest possible timescales. Based on the legislation, which includes an 18-month implementation period, the earliest timeframe would be midway through 2026.
As set out in the legislation, local authorities must publish an outline visitor levy scheme for consultation prior to considering the results of the consultation and deciding on whether or not to introduce a levy.
Whilst the date in which the Act will come into force is still to be announced, We expect to launch a 3-month consultation during the last quarter of 2024.
To ensure that the collection of the levy is effective and efficient, we will be working with other local authorities (including Edinburgh City Council and Argyle and Bute Council), the Digital Office and the Improvement Service to design and develop a bespoke online digital platform. This will have both business facing side for making their returns and a Council facing side for the Revenues team to use when collecting the levy.
Local authorities looking to implement a visitor levy need to have regards to the local tourism strategy if one is in place. We published a consultation draft in May 2024 and we are currently amending the strategy to take on board the feedback received. The intention is to report a final version of the tourism strategy to Council for approval in November.