The Scottish Parliament has approved significant amendments to its visitor levy framework, granting local councils the power to charge a fixed sum for overnight stays, rather than solely a percentage of accommodation costs. The Visitor Levy (Amendment) (Scotland) Bill, which passed at Holyrood on Tuesday, March 24, 2026, aims to provide greater flexibility for local authorities in designing and implementing the charge.
This legislative change follows the original Visitor Levy (Scotland) Act 2024, which received royal assent on July 5, 2024. Initially, the 2024 Act limited councils to a percentage-based levy.
Public Finance Minister Ivan McKee stated that the new legislation “strengthens the visitor levy by giving councils the flexibility to choose the approach that best reflects their local area, empowers local decision making and ensures the benefits of tourism are shared across communities.”
He further emphasised the importance of the tourism sector and the government’s commitment to ensuring visitor levies are “an effective option for councils who choose to introduce them to boost investment in local economies and services.”
Several Scottish cities have already outlined plans for a visitor levy based on the initial percentage model. Edinburgh, set to become the first, will introduce a 5% charge on stays after July 24, 2026, applied for a maximum of five nights.
Glasgow’s levy, also at 5%, is due to commence from January 25, 2027, for the full length of stay.
Aberdeen plans a 7% charge from April 1, 2027.
Other councils, including Stirling and West Dunbartonshire, have likewise agreed to implement percentage-based schemes, with Stirling opting for 3% from June 14, 2027, and West Dunbartonshire a 5% levy from July 1, 2027.
Under the revised legislation, councils now have the option to convert these percentage-based schemes to a fixed fee. However, a transition period applies: an 18-month “lead-in” is required before any existing approved schemes can be altered to a fixed rate, as no local authority currently has a live scheme. If a scheme were already operational, this changeover period would shorten to six months.
The tourism sector has largely welcomed the move to allow fixed fees. Marc Crothall, Chief Executive of the Scottish Tourism Alliance, praised the development, noting it is a “testament to what can be achieved when government and business work together in a genuinely collaborative way.”
He believes the fixed amount model will be “easier and less costly for accommodation providers and local authorities to administer, and importantly more transparent for our visitors.”
Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, echoed this sentiment, describing the enhanced flexibility as a “crucial step forward in delivering a fair and practical system for Scotland’s £1bn self-catering sector.”
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The bill also includes provisions allowing accommodation providers to retain a proportion of the collected levy to offset administrative costs. Furthermore, local authorities will be mandated to review their schemes after three years to consider potential revocation.
While industry bodies largely supported the fixed-fee option, a proposal for a “per person per night” fixed amount was rejected during the bill’s parliamentary stages. COSLA, the local government representative body, “strongly opposed” this decision, arguing the approach was “workable.” Similarly, a “medical exemption” for those travelling for medical purposes was also not adopted.
Not all councils are proceeding with a levy. Argyll and Bute has delayed its introduction, while Orkney and Shetland Councils voted against implementing a charge, although Orkney did not rule out alternative revenue-raising mechanisms.
