Tourist tax backed by majority of MSPs on key committee

A majority of MSPs on a key Holyrood committee have backed the ‘general principles’ of a tourist tax in Scotland.

The legislation, which would allow Scottish local authorities to introduce an overnight accommodation levy, has been backed by Argyll and Bute councillors who say it could generate millions of pounds in revenue for the area.

Publishing its Stage 1 Report today, the Parliament’s local government, housing and planning committee said that a majority of its members supported the general principles of the Visitor Levy (Scotland) 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 a consultation 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.

Committee convener Ariane Burgess said members had recognised the Bill’s potential to have a positive effective on tourism in Scotland.

“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,” she added.

“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.”

MSPs said the bill had flexibility to allow councils to implement it in a way that suited the local area.

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 earliest date a visitor levy could be applied by local authorities is 2026, which a majority of the committee thought would provide enough time for any outstanding issues to be resolved.

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