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Visitor levy legislation introduced

26 May 2023 • Sarah Medcraf

Tourists could soon be charged extra for holidaying in Scotland.

Legislation to give local authorities the power to apply a visitor levy, or "tourist tax" has been published. If passed by MSPs, it will give councils the ability to add a tax to overnight accommodation, based on a percentage of the total costs.

Councils will have to consult with local communities, businesses and tourism organisations before going ahead with the charge. Local authorities would also have to consult on where the proceeds of the levy would be spent before the tax is introduced officially.

The Scottish government said that all funds raised must be reinvested into the local community, on facilities and services used by visitors, benefitting the local area and economy, and enhancing the tourist experience.

The proposals follow public consultation and form part of the New Deal for Local Government which gives councils greater financial flexibility and strengthens local democracy.

The Scottish Government has also invited representatives from the tourism industry, COSLA and other partners to join an expert group to consider how it could best be implemented if passed.

Sarah Medcraf said “We look forward to Moray Council’s consultation on this and we can engage deeper with the tourism sector on this. The sector is still so fragile post COVID and any additional tax collecting is a burden. However, if the money generated is spent directly to benefit the sector, the businesses may believe that this is worth the process. We will engage with members and ask the data required at the relevant time”

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