Scotland’s Visitor Levy Stirs Debate

The Price of a Postcard: Scotland's Tourist Fee Divide

A new chapter for Scottish tourism is unfolding, marked by a growing divergence on how to manage its success. While major cities are pushing ahead with initiatives for a levy on overnight accommodation, many councils, particularly in rural and island areas, are firmly rejecting the idea. This split reflects a fundamental debate over who should fund the upkeep of Scotland's world-famous attractions without deterring the very visitors the country depends on. Legislation from the Scottish Parliament, the Visitor Levy (Scotland) Act, provides local authorities with the authority to implement such a fee, but the choice to use this power has created a complex and varied landscape for tourists and businesses alike.

At the heart of the issue is the desire to reinvest in services and infrastructure that support a thriving visitor economy. Proponents argue that a modest fee added to accommodation bills is a fair way to ensure that visitors contribute directly to maintaining the parks, streets, and facilities they use. However, opponents express strong reservations, fearing the administrative load on small businesses and the potential for a levy to make Scotland a less competitive destination. This division highlights the distinct challenges faced by different regions, from the capital's bustling streets to the tranquil landscapes of the islands.

Edinburgh's Trailblazing Levy

As Scotland's first city to bring in a visitor charge, Edinburgh is setting a precedent for other urban centres. From 24 July 2026, people staying in the city will face an additional five percent cost on their lodging. The fee will cover a wide range of paid accommodation, including hotels, B&Bs, hostels, and self-catering apartments. Any reservations made after 30 September 2025, for visits on or after the implementation date will incur this new charge.

A key detail of Edinburgh's scheme is a cap on the fee; it will be limited to the initial five nights of any single trip. City officials project the charge will generate substantial revenue, which they have pledged to reinvest directly into enhancing the visitor experience. The funds are earmarked for improving city infrastructure, supporting cultural events and heritage sites, and managing the overall impact of tourism. This move is presented as a necessary step to maintain Edinburgh's status as a premier global destination.

Maintaining the Capital’s Charm

The push for a visitor fee in Edinburgh stems from the visible strain that millions of tourists place on the city's infrastructure each year. Tourism is a cornerstone of the capital's economy, generating billions in revenue and supporting tens of thousands of jobs. However, the sheer volume of people, especially during peak seasons like the August festivals, takes a toll on public services, from street cleaning to transport. Many residents and business owners believe that the urban centre can look worn down following a busy summer.

Hotel managers and tourism operators hope that the extra funds will be used for tangible improvements. The argument is that for Edinburgh to continue attracting visitors and commanding premium prices, it must maintain a high standard of presentation and service. Revenue from the fee is intended to address this directly, providing a dedicated funding stream to keep the city clean, safe, and attractive. This investment, supporters say, is crucial for safeguarding the long-term sustainability of Edinburgh's valuable tourism sector.

Glasgow and Aberdeen Follow Suit

Glasgow is preparing its own five percent visitor fee, scheduled to begin on 25 January 2027. Differing from Edinburgh's model, Glasgow's charge will be collected for the entire length of a person's visit. The city council anticipates this will generate around £16 million annually. These funds are designated for enhancing local infrastructure and supporting a vibrant calendar of events, aiming to bolster Glasgow's appeal as a destination for both tourists and business travellers. Accommodation providers can retain 1.5% of the collected funds to help cover their administrative costs.

Meanwhile, Aberdeen is moving towards a higher charge of seven percent for each night's stay, with a start date no sooner than 1 April 2027. Based on an average nightly hotel cost of £70, this would add approximately £4.90 to a visitor's bill. Forecasts from Aberdeen City Council suggest the levy could raise up to £6.8 million per year. The revenue is intended for projects that will enhance both leisure and business tourism, helping the city compete on a European stage and attract major conferences and events.

A Fractured Response from Rural and Island Councils

While Scotland's cities move forward with visitor fees, a significant number of authorities in other locations have decided to pause or reject the idea entirely. The island councils of Orkney, Shetland, and Comhairle nan Eilean Siar (the Western Isles) have all opted against the current accommodation-based model. Their primary objection is that the legislation was designed with urban centres in mind and is ill-suited to the unique tourism dynamics of island communities.

These councils argue that their tourism economies are dominated by small, family-run businesses for whom the administrative load of collecting a percentage-based tax would be disproportionately high. A joint feasibility study found that implementation costs could potentially outweigh the revenue generated. There are also fairness concerns, as the fee would not cover the rapidly growing number of travellers from cruise ships or those in campervans, who still use local infrastructure. This widespread rejection from the islands sends a strong message that a one-size-fits-all approach to tourism funding is not workable across Scotland.

The Push for a ‘Point of Entry’ Fee

In response to the perceived flaws in current legislation, island authorities are advocating for an alternative: a charge collected at arrival points. This model would gather a fee from visitors at ferry terminals and airports, capturing a much broader base of tourists. This would include the large number of cruise passengers—a figure that reached approximately 1.2 million across Scotland in the previous year. Proponents argue this would be a fairer and more efficient system for island communities, removing the administrative load from small accommodation providers.

The Scottish Government has acknowledged these concerns and launched a consultation on a possible levy for cruise ships. The idea has been debated for years, with previous consultations revealing a deep divide between supportive local authorities and opposing businesses and port operators. The cruise industry has warned that such a fee could deter operators, harming the local economies that depend on them. The government is now analysing the results of the latest consultation and will release its findings later.

Consultations Reveal Widespread Apprehension

It is not just the islands where proposals for a visitor charge have faltered. Argyll and Bute Council recently halted its plans when a public survey revealed that 73% of respondents were opposed. Businesses, residents, and even visitors voiced strong opposition, leading the council to seek clarity from the government on alternative charging models, such as a flat rate rather than a percentage. The council leader warned that without this additional revenue, cuts to essential services might be unavoidable.

Similarly, the council in South Ayrshire, an area that includes the famous Trump Turnberry golf resort, shelved its plans when a survey showed a mere 15% were in favour. Concerns were raised that the levy would make the area less competitive compared to neighbouring councils without the tax. The Federation of Small Businesses highlighted the risk of damaging an already fragile tourism sector. These results show a significant disconnect between the government's enabling legislation and the appetite for its implementation on the ground.

Business Concerns Echo Across the Country

In regions still considering the fee, the business community has expressed significant anxiety. Hoteliers in Dumfries and Galloway have warned that such a charge would create an unnecessary price increase for the area, potentially deterring visitors. The local hospitality group has called on the council to pause its plans until the Scottish Government clarifies whether a simpler flat-rate fee will be permitted, a model preferred for its practicality.

These sentiments are echoed in the Highlands, where commerce chambers have also raised concerns about the impact on competitiveness. A key issue for many smaller operators is the fear that the levy, which is processed similarly to VAT, could push them over the VAT threshold, creating a significant financial burden. The Scottish Tourism Alliance has criticised the City of Edinburgh Council's handling of the rollout, stating there is a lack of clarity for businesses on how to implement the tax, creating a situation described as a "debacle".

Payment and Exemptions

The visitor fee is intended for anyone using paid overnight lodging in the designated areas, regardless of their reason for travel. This encompasses leisure tourists, business travellers, and UK residents, including people from other parts of Scotland. The charge covers a wide spectrum of accommodation, from hotels and B&Bs to campsites and even stationary vessels like canal boats.

However, the legislation provides important safeguards for vulnerable groups. Individuals without a permanent or secure home are not required to pay the fee. This specific protection applies to those experiencing homelessness and covers refugees, asylum seekers, and people who have experienced domestic abuse. Furthermore, an amendment to the bill also provides an exemption for anyone receiving disability benefits from either the UK or Scottish Governments. These measures are designed to ensure the levy does not unfairly penalise those in difficult circumstances.