Tag: Visitor Levy Bill

Holyrood passes Visitor Levy Bill

TOURIST TAX: Local authorities empowered to invest in tourism

MSPs have backed legislation giving councils a new power to introduce a visitor levy that would raise funding for local visitor facilities and services.

The Visitor Levy (Scotland) Bill will enable local authorities to apply a levy on overnight stays with all money raised to be reinvested in services and facilities largely used by tourists and business visitors. Similar levies already apply in tourist destinations across Europe, including Amsterdam and Berlin as well as in countries outside of Europe, such as Canada.

Councils that want to introduce a visitor levy will be able to do so after they have consulted with local communities, businesses and tourism organisations.

An 18-month implementation period will then apply before any local authorities can introduce a visitor levy scheme in their area. This is to provide adequate time for councils and businesses to put in place the systems needed to collect and administer a levy.

An expert group of representatives from the tourism industry, COSLA and other partners will continue to work together to produce guidance for local authorities putting in place a visitor levy scheme.

Investment Minister Tom Arthur said: “We share a vision with the tourism industry for Scotland to be a global leader in tourism and one of the most economically, environmentally and socially sustainable destinations in the world.

“A visitor levy can help achieve that vision by empowering councils to raise funding, if they wish to do so, that can be invested in local visitor services and activities.

“This Bill has been a clear example of partnership working between the Scottish Government, local authorities and the tourism industry, in line with the New Deal for Local Government and New Deal for Business.

“We have sought to deliver as much flexibility to local authorities as possible and to listen to businesses to make it as easy as possible for them to adopt these measures.”

Councillor Katie Hagmann, COSLA’s Resources Spokesperson, said: “I am extremely pleased that the Visitor Levy Bill has now passed through stage 3 in Parliament. With the introduction of these new Visitor Levy powers, councils across Scotland will have the ability to use a discretionary mechanism, that is firmly based on local flexibility.

“The opportunity of these new powers recognise the great diversity of Scotland’s communities, acknowledging that a one-size-fits all approach does not work. It will allow councils to respond to the needs and circumstances of both the local communities and our important visitor economies.

“The revenue raised through the introduction of visitor levy powers will be to the mutual benefit of residents, tourists and businesses. There will be opportunities for much-needed additional investment, potentially available across a range of facilities and services, from transport and culture to maintaining and improving our world-famous natural heritage and environment.

“The visitor levy is a crucial step towards greater empowerment for local government, and we will continue to progress joint work with the Scottish Government in ensuring the smooth progression of these powers into the hands of councils across Scotland.”

Council Leader Cammy Day has welcomed the Scottish Parliament’s decision to pass the Visitor Levy Bill.

He said: “We will continue to work closely with the sector, @VisitScotland and other partners to develop the scheme in the months and years ahead.”

Former Edinburgh city council leader SNP Cllr Adam Nols-McVey said: “Delighted to see this pass! It took a great deal of work, determination, engagement & collaboration when I led this process & changed @scotgov policy.

“The tourist tax can create investment for Edinburgh to help communities & local businesses thrive!”

The earliest a visitor levy could come into force would be spring 2026.

Holyrood Committee Backs Visitor Levy Bill at Stage 1

‘potential to be a positive force for the tourism sector’

The majority of members on the Holyrood Committee considering the Visitor Levy (Scotland) Bill have supported the general principles behind the legislation, which would allow Scottish local authorities to introduce an overnight accommodation levy, following extensive consultation.

Publishing its Stage 1 Report today, the Parliament’s Local Government, Housing and Planning Committee said that a majority of members of the Committee support the general principles of the Bill and a majority of members again found that it was “unlikely that the introduction of a levy in certain local authority areas, assuming a relatively modest rate, would have a deterrent effect on visitor numbers and therefore on the visitor economy in Scotland.”

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

A majority of members however agreed with evidence from stakeholders which suggested the introduction of a levy has “the potential to bring significant benefits to visitors, the tourism sector and local residents” whilst recognising that not all of Scotland’s local authorities are expected to introduce a levy and therefore benefit directly from the Bill.

Supporting the Bill’s provision to give local authorities the ability to choose whether to introduce a levy and how to apply it locally, a majority of members of the Committee welcome “the degree of flexibility” provided and believe that this will allow councils to “design and implement it in a way that suits local circumstances.”

The Committee 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 lets licensing.

The Report also said the Committee was “mindful of the concerns of accommodation providers that the introduction of a levy could result in an additional administrative burden” and welcomed the Bill’s requirements to implement localised monitoring and reporting to ensure transparency and accountability.

Considering if any levy should be a flat or percentage rate, the Committee considered this was “perhaps the most difficult aspect of the Bill in terms of determining what the right approach should be” and invited the Scottish Government to undertake further work on this area of the Bill to find a suitable solution.

The majority of members of the Committee agreed that “meaningful consultation with the tourism and accommodation sector to create a genuine sense of partnership working” would “help alleviate the concerns of many in the sector” and show that a levy should bring “long-term benefits” by improving the experience of visitors to areas where a levy is applied.

The earliest date a visitor levy could be applied by local authorities is 2026, which a majority of members of the Committee considered would provide enough time for any “outstanding issues to be resolved through engagement and consultation” with businesses and other key stakeholders.

However, the Committee also invited the Scottish Government to respond to suggestions from some councils that they should be able to introduce a levy sooner than 2026.

Commenting, Committee Convener, Ariane Burgess MSP said: “In supporting the Visitor Levy Bill at Stage 1, 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.”