The UK holiday hotspot that could bring in tourist tax for 6 million visitors

The Highland Council in Scotland is starting a consultation process to look into the impact a tourist tax would have on the region.

More than six million people visit the picturesque Highlands every year and under new Vistor Levy legislation passed by SMPs at Holyrood earlier this year, the council has the power to introduce a tourist tax to visitors who stay overnight in the area.

The charge would apply to overnight accommodation such as hotels, B&Bs and holiday lets to raise money to improve infrastructure, such as roads and public toilets, that incur wear and tear due to tourism.

A page dedicated to the Visitor Levy has been published on the council’s website that includes key information about the legislation, the process so far, and the next steps.

It mentions a similar consultation carried out in 2019 that surveyed 6,600 residents and business and found that the majority were in favour of the tax.

In this assessment, the Highland Council calculated the tax could bring in between £5 million and 10 million a year from the tax, but a new consultation process is needed. The Vistor Levy legislation says that local authorities must publish a new outline for the tourist tax scheme for consultation prior to considering the results and deciding on whether or not to introduce a levy.

After that, there will be an 18-month implementation period, meaning that the tourist tax would start sometime in 2026, if all procedures were followed and there was enough local support.

Economy and Infrastructure Committee Chair, Councillor Ken Gowans said: “Tourism is one of our most important sectors and the levy would form an essential part of how we sustain, maintain and develop the services and infrastructure which the sector relies on.

“The upcoming consultation will give everyone the opportunity to put forward their views on how a levy scheme should operate and what the proceeds should be spent on.”

We recognise that this consultation will only be one stage in the process, and we will be building up on ongoing opportunities for representatives from across the region to feed in and shape how the levy can be delivered.”

The council has confirmed that the three-month consultation process will take place during the last quarter of 2024.

In England, the seaside towns of Bournemouth, Poole and Christchurch announced plans to bring in a tourist tax in a bid to reduce overcrowding. It was due to start in June, with tourists to be charged an extra £2 per night, but was put on hold due to opposition from more than 40 local hotels.

A form of tourist tax is already operational in all or parts of many countries including Spain, Italy, New Zealand, Germany, Switzerland, the Netherlands, Japan, Greece, France, Croatia, and Austria.

Last week, New Zealand announced itplans to triple its tourist tax, from £16 to £47 per stay.

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