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 Ivan McKee 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.
The Scottish Tourism Alliance’s Chief Executive, Marc Crothall MBE, said:
“Following constructive talks with the Minister for Public Finance, Scottish Government officials and cross-party politicians over the past year, The Scottish Tourism Alliance (STA) is heartened that they have listened to our calls to introduce the option of a simpler, fixed-fee visitor levy charge.
“It shows the Scottish Government’s willingness to act on feedback from business to ensure we have a visitor levy in place that is fit-for-purpose. It will overall be easier and less costly for accommodation providers and local authorities to administer, and importantly more transparent for our visitors.
“We now look forward to working constructively in partnership with the Scottish Government to deliver meaningful reform of the visitor levy charging model, which we have championed from the very start.
“In the meantime, we urge all local authorities to consider pausing any plans for a visitor levy scheme as this plays out in the Scottish Parliament over the next few months. Change is coming just down the line.”
Fiona Campbell MBE, Chief Executive, Association of Scotland’s Self-Caterers and Vice Chair of Scottish Tourism Alliance Policy Group, said:
“We welcome the announcement of the Expedited Visitor Levy Bill. It provides an innovative and pragmatic mechanism for reforming Scotland’s visitor levy, increasing local flexibility and demonstrating clear cross-party recognition that urgent change is required.
The inclusion of a flat-rate option is a hugely positive step and something the industry could not have imagined being on the table even two months ago. It shows that the Scottish Government has listened to consistent, evidence-based concerns from operators, councils and wider stakeholders. The move towards flexibility mirrors the strong alignment of industry bodies, MSPs, local authorities, OTAs, and accommodation providers calling for a fairer and more practical model for implementation.
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We look forward to working collaboratively with Ministers, MSPs from all parties, local authorities, and partners across the tourism and hospitality sector as the Bill progresses through Parliament. The ASSC and STA will continue to engage constructively on the detail to ensure that the final legislation benefits communities, businesses and visitors alike.”
