Visitor levy unlikely to have detrimental impact on tourism, say MSPs

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Andrew Feinberg

White House Correspondent

A visitor levy in Scotland would be “unlikely” to have a detrimental impact on local authority areas, a Holyrood committee has said in a report.

The Scottish Parliament’s Local Government, Housing and Planning Committee published its stage one report on the Visitor Levy Bill on Thursday.

If passed, it would allow local authorities to introduce an overnight accommodation levy in order to reinvest locally in facilities or services used by tourists.

The majority of committee members have supported the Bill and said it is “unlikely” the levy will have a detrimental effect on certain local authority areas, as long as the rate is relatively modest.

Scottish Conservative members Miles Briggs and Pam Gosal did not support several of the report’s conclusions, or the general principles behind the Bill.

There was general agreement that the introduction of a levy has the potential to bring “significant benefits” to visitors, the tourism sector and local residents.

Local authorities will be able to design and implement the levy in a way that suits the area’s circumstances.

But committee members also recognised business concerns around the timing of the legislation, following the impact of Covid-19 on Scotland’s tourism sector and the increased costs of doing business, as well as recent changes to short-term let licensing.

The report acknowledged concerns that the introduction of the levy could result in an additional administrative burden.

However, the Bill will require localised monitoring and reporting to ensure transparency and accountability.

It is anticipated the earliest the levy could be implemented would be 2026.

Ariane Burgess, convener of the committee, said: “In supporting the Visitor Levy Bill at stage one, a majority of the members of the committee recognise its potential to positively impact Scotland’s tourism sector.

“After thorough consultation and consideration, most members of the committee have supported the core principles of the legislation, emphasising that a well-designed levy, at a modest rate, shouldn’t discourage visitors and should bring benefits for the tourism sector.

“A majority of the members of the committee welcomed and support the flexibility provided by the Bill, which will enable local authorities to customise the levy’s implementation meaning that local levies are designed to suit local circumstances.

“Understanding concerns from businesses and being mindful of possible administrative burdens, a majority of members of the committee believe that industry worries can be resolved through constructive engagement and consultation at the local level, ahead of any levy being introduced in 2026.

“For the majority of the members of the committee the Visitor Levy Bill has the potential to be a positive force for the tourism sector, and thank the individuals, organisations and other stakeholders who provided evidence to inform this report.”