Glasgow City Council has given the green light to a new 5% tourist tax, set to be introduced from January 2027, making Scotland’s largest city the latest in the UK to adopt a visitor levy.
The move aims to generate millions in annual revenue to support local infrastructure, culture, and tourism services, while inviting both support and debate from residents and the hospitality sector.
The levy will require visitors to pay 5% of their accommodation bill for every night of their stay. This applies to all forms of paid overnight accommodation, including hotels, hostels, guest houses, B&Bs, and self-catering options such as Airbnbs. Based on the average room rate, this equates to approximately £4.83 per night.
The scheme is expected to raise around £16 million annually after costs, with hotel operators permitted to retain 1.5% of the amount collected to offset administrative expenses.
Funds generated by the tourist tax will be reinvested into the city, targeting improvements in infrastructure, the built and natural environment, cultural events, and the marketing of Glasgow as a destination.
The council has emphasised that the levy is designed to ensure that visitors contribute to the upkeep and enhancement of the city they enjoy, rather than placing the entire burden on local taxpayers.
Public Consultation and Exemptions
Glasgow City Council has launched a formal consultation, inviting residents, businesses, and stakeholders to share their views on the levy and how the revenue should be spent.
The process follows extensive engagement with the hotel and hospitality industry to shape the final proposals.
There will be limited exemptions: those staying in accommodation due to homelessness, domestic abuse, or asylum claims will not pay the levy. People receiving specific disability benefits will initially pay but be reimbursed.
The earliest the tourist tax could come into effect is January 2027, due to national legislation requiring an 18-month implementation period following council approval.
A visitor levy forum will be established to advise the council, with representation from the tourism sector and local communities.
Wider Context and Reactions
Glasgow’s move follows Edinburgh, which is set to implement a similar 5% tourist tax in July 2025. Supporters argue that such levies are common in European cities and provide a vital funding stream for maintaining and enhancing city services and attractions.
Detractors, however, have raised concerns about the potential impact on budget-conscious travellers and the administrative burden on accommodation providers.
Deputy Council Leader Richard Bell stated: “We think there is a strong case for a visitor levy – which means people who enjoy what our city has to offer, but who do not pay local taxes, are asked to contribute alongside citizens.”
Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers said: “Glasgow City Council’s decision to proceed with a 5% tourist tax is deeply concerning and risks undermining the city’s fragile tourism economy at a time when operators are already grappling with increasing costs, regulatory burdens and reduced bookings.
While we recognise the desire to secure sustainable funding for the visitor economy, the approach approved today stands in stark contrast to the more balanced and pragmatic positions adopted by local authorities in Ayrshire and the Western Isles. These councils have rightly prioritised local consultation and economic impact over political expediency.
We are particularly concerned by the cumulative impact this levy will have on smaller self-catering businesses and the lack of clarity around how the significant estimated costs – nearly £1 million annually – will deliver real value to tourism stakeholders. While allowing operators to retain 1.5% to cover costs is a step in the right direction, the mechanism still places significant administrative and financial burdens on accommodation providers without adequate safeguards.”
Glasgow’s 5% tourist tax is poised to reshape how the city funds its tourism infrastructure, aiming to balance the needs of visitors, local communities, and the hospitality sector.
With public consultation underway and implementation set for 2027, the city is seeking to ensure the levy delivers tangible benefits for all who live in and visit Glasgow.
