Visitor Levy Bill introduced to Holyrood

Scottish local authorities will have power to charge a levy on overnight stays within their area and use the proceeds to invest in local tourism facilities and services, under a bill just introduced to the Scottish Parliament.

The Visitor Levy (Scotland) Bill would allow a charge based on a percentage of the visitor's accommodation cost.

All money raised would have to be reinvested locally on facilities and services substantially for or used by visitors, which ministers believe will enhance the tourist experience and benefit local communities and their economies.

Councils would be required to consult communities, businesses and tourism organisations before putting a visitor levy in place. They would also have to consult on how any revenue raised should be spent.

The levy could be applied in all or parts of a council's area. It would be collected by the accommodation providers and remitted to the local authority (the default being quarterly). It would apply to almost all types of overnight accommodation, including hotels, self-catering accommodation, and campsites.

As of 2023, 21 out of the 27 EU member states charge occupancy taxes. Some cities and regions (such as Berlin) use the levy as a way to increase general revenues, while others (such as Nice and the Balearic Islands) ringfence all or part of the revenues to fund specific projects.

The Scottish Government has invited representatives from the tourism industry, COSLA and other partners to join an expert group to consider how the bill could best be implemented if passed.

Public Finance Minister Tom Arthur commented: "Scotland is already a very popular tourist destination and the domestic and international visitors we welcome every year have a significant and positive impact on the Scottish economy. Giving councils the power to introduce a visitor levy is one tool that will provide additional resources to continue to attract visitors to Scotland.

"Levies on visitors staying in paid-for accommodation are already used around the world and it is reasonable for local areas to want a small contribution from tourists to help support and sustain visitor economies.

"There have been significant contributions to the Bill so far from the tourism industry, COSLA and other partners and I look forward to continuing to work with them as it progresses through Parliament."

Access the bill and related papers.