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Scotland Tourist Tax?

Daniel Riley July 18th, 2023 1,070 views

Picture Credit: Shutterstock

The Scottish government has introduced legislation that could potentially lead to the imposition of a tourist tax on overnight stays in the country. The proposed visitor levy bill, currently under consideration by the Scottish parliament, aims to empower local councils to apply a tax on accommodations, calculated as a percentage of the cost of the stay.

If passed, this legislation would enable councils to collect revenue from various types of overnight accommodation, including hotels, self-catering establishments, and campsites. The specific rate of the tax would be determined by each local council. The Scottish government insists that all the funds raised through this levy would have to be reinvested locally, with the aim of enhancing the tourist experience and benefiting local communities and their economies.

The introduction of a tourist tax is not unique to Scotland, as similar levies on paid accommodation are already in place in various tourist destinations worldwide. The Scottish government sees this as a reasonable measure to ensure that local areas receive a fair contribution from tourists, which can be used to support and sustain visitor economies.

To facilitate the implementation of a visitor levy, an expert advisory group, facilitated by VisitScotland, will bring together representatives from the tourism industry and local government. Their role will be to discuss the best approaches to implementing the tax and to develop national guidance for local authorities.


Before implementing a visitor levy, councils would be required to consult with communities, businesses, and tourism organisations. This ensures that all relevant stakeholders have a say in the decision-making process. Additionally, councils would also need to seek input on how the revenue raised should be allocated and spent.

Public finance minister Tom Arthur highlights the significant and positive impact of tourism on the Scottish economy. Scotland already attracts a large number of domestic and international visitors, and providing councils with the power to introduce a visitor levy is seen as an additional resource to continue attracting tourists.

For holidaymakers planning a trip to Scotland, the introduction of a tourist tax could have implications for their travel expenses. If the legislation is enacted, visitors would likely see a small additional charge added to their accommodation costs. The exact amount would depend on the rate set by the local council.

Reinvest Locally

However, it's important to note that the visitor levy aims to reinvest the collected funds locally, potentially leading to improved facilities and services that enhance the overall tourist experience. This reinvestment could benefit both visitors and local communities, as it aims to contribute to the sustainability and growth of the local economies.

The Convention of Scottish Local Authorities (Cosla) has expressed support for the proposed legislation, highlighting the importance of local decision-making and the ability for councils to set taxes based on local needs. By granting councils the power to independently set rates and collect revenue from visitors, the visitor levy empowers local authorities to respond to the specific requirements of their areas and the people who live there.

It is worth mentioning that the legislation is still under consideration, and its ultimate passage is not guaranteed. However, if the bill is approved, it would be another tool available to local councils to support their respective areas and ensure the continued success of Scotland's tourism industry.

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