Aberdeen City Council has given the green light for a public consultation on a potential Visitor Levy scheme, which could see overnight guests paying an additional fee on their accommodation stays.
The proposed scheme, if implemented, would introduce a 7% charge on overnight stays, potentially coming into effect as early as 1 April 2027. This rate would translate to an additional £5 per night for an average hotel room priced at £70.
Councillor Alex McLellan, Convener of Finance and Resources, expressed optimism about the scheme’s potential, he said: “Aberdeen City Council has developed the visitor levy scheme with key stakeholders which will now go out to consultation.
“There is the potential for the scheme to raise significant funds to help support our ambition to be a leading visitor destination”.
McLellan then emphasised the importance of considering industry views, he said: “Our decision around whether or not to introduce a visitor levy will be informed by the consultation as it is important to consider the views of the trade, and a key part of that discussion will be around how the council could use the funds to boost the city’s economy, increase visitor numbers, and, in turn, fill hotel rooms”.
While the hotel sector initially opposed the legislation, Frank Whitaker, Chair of the Aberdeen City and Shire Hotels Association, acknowledged the potential benefits: “It is fair to say that the hotel sector lobbied hard against legislation for a visitor levy.
“However, the law now enables local authorities across Scotland to implement a visitor levy, so it is incumbent on industry to work with local authorities to develop effective schemes that support local economic growth”.
“The introduction of a visitor levy scheme in Aberdeen City has the potential to be a positive economic growth lever if correctly invested, benefitting not just all types of visitors to Aberdeen but also local residents”.
The Visitor Levy (Scotland) Bill allows local authorities to charge a fee on overnight stays in various types of accommodation, including hotels, bed and breakfasts, hostels, and self-catering accommodations.
The main purpose is to generate funds for investment in the local tourism sector, benefiting both visitors and residents.
As the consultation process begins, Aberdeen City Council will seek input from stakeholders and the public to shape the final decision on implementing this visitor levy scheme.