Greater flexibility to design local schemes
New legislation has been published that will give councils more choice in how they design and apply a visitor levy to raise funds for local tourist services.
While local authorities currently have the power to apply a charge on overnight stays based on a percentage of accommodation costs, the Visitor Levy (Amendment) (Scotland) Bill proposes giving councils additional powers to set the levy as a fixed amount.
If passed by Parliament, the legislation will also allow councils to set a range of fixed amounts, such as for different geographical locations, times of year or types of accommodation.
In addition, the Bill clarifies how accommodation providers should report to councils and how levies are applied to sales made through third parties such as travel agents.
Public Finance Minister Ivan McKee said: “When we introduced the original visitor levy legislation, we wanted to empower councils to implement a scheme that was right for their areas and easy to understand for local businesses.
“We worked closely with councils and tourism bodies when the original legislation was considered and passed by Parliament. These new proposals will give councils even more flexibility and provide clarity to businesses.
“We want to ensure visitor levies are an effective option for councils who choose to introduce them to boost investment in local economies and services.”
Fiona Campbell MBE, Chief Executive of the Association of Scotland’s Self-Caterers and Vice Chair of Scottish Tourism Alliance Policy Group, said: “The Association of Scotland’s Self-Caterers warmly welcomes the introduction of the Scottish Government’s Visitor Levy (Amendment) Bill.
“The commitment to introduce much-needed legislative changes in the current parliamentary timetable is an important recognition of the urgency of the situation and the continuing complexities that a percentage-based model presents for Scotland’s valuable accommodation sector.
“If passed, this legislation will give local councils greater flexibility and choice by allowing them to set the levy as a fixed amount. This is a pragmatic change that industry has pushed hard for, and it also reflects a clear cross-party desire to ensure the visitor levy is fit for purpose, proportionate and workable in practice.
“We are heartened that the Scottish Government has listened to consistent, evidence-based concerns.
“We look forward to working constructively with the government and MSPs from all parties as the Bill progresses, to help deliver a levy that boosts local tourism investment in those areas that choose to take it forward, while supporting Scotland’s vital tourism economy.
“Given that change is coming, the sector would encourage local authorities, including those who have already formally consulted on a percentage-based levy, to seriously consider opting for a simpler, more workable fixed amount charge, which will have a less damaging impact on the accommodation businesses that are the lifeblood of our local communities.”