A bill is being prepared to give councils greater flexibility
over how they design and implement a visitor levy.
The Visitor Levy (Scotland) Act 2024 grants councils the power to
raise funds for tourist services and facilities by applying a
charge on overnight stays based on a percentage of accommodation
costs.
New proposals will give councils the choice of setting a fixed
amount instead. Councils will also be given the option of setting
different fixed amounts such as for different geographical
locations, times of year or types of accommodation.
The legislation will also clarify how levies are applied to sales
via third parties, such as booking platforms, and the information
accommodation providers must share with councils.
The bill is intended to be introduced in early 2026.
Public Finance Minister said:
“The visitor levy empowers councils by giving them a new way to
raise money for investment in tourist services and facilities.
Our aim has been to give councils the flexibility to design a
levy that works for their areas, while ensuring businesses can
easily understand what it means for them.
“The Act passed last year was an example of partnership working
between the Scottish Government, local government and tourism
businesses. Through regular discussions with our
partners, it became clear that further flexibility would be
welcomed. That is why we have decided to legislate next year, to
ensure local visitor levies work effectively for everyone.”
Background
If the new bill is passed, local authorities may choose to
introduce a visitor levy that is based on either a percentage
rate model or a fixed amount model.
Under the fixed amount model, local authorities will have the
discretion to apply the levy on a per person per night or a per
night basis.
Subject to the parliamentary timetable, it is hoped that the Bill
will be passed in the current session.
