Scotland’s Visitor Levy Bill passed in the Scottish Parliament on Tuesday 28th May with the SNP, Labour and Scottish Greens voting Yes (83), the Tories voting No (27), and the LibDems Abstaining (4).

The Visitor Levy is a power which Local Authorities can choose to use by charging a fee for those who stay over night in their council areas. Money from the Visitor Levy would go towards investments in services and facilities which are used by visitors.

There will be a period of 18 months for those councils who wish to introduce it to consult widely and put in place the administration required to manage and collect it.

COSLA, the organisation which represents Scotland’s Local Authorities is very pleased to see its introduction.

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.”

Before abstaining on the Bill, Liam McArthur, LibDem MSP for the Orkney Constituency raised a number of points in regards to motorhomes and cruise liners.

Tom McArthur is the Scottish Government Investment Minister and he said that :

“The Government is open to introducing a cruise ship levy and to exploring the detailed mechanisms that would be required to operate it. We will therefore engage with local authorities, the cruise ship industry and other stakeholders in the coming months to explore the issue further and to develop more detailed proposals.”

There will be a public consultation on this issue later this year. He also confirmed that he is willing to explore with Liam McArthur the issue of motorhomes and how the legislation could be adapted by Island Councils over the practical aspects of collecting it. The Bill does cover motorhomes but only those who use official camp sites. The problem arises over those who do not. Collecting a visitor levy from them could be done, as Liam McArthur has suggested, when they book ferry passage. This possibility is still being looked into.

Highlands and Islands SNP MSP Emma Roddick suggested exploring :

“How to catch all non-resident and non-Gypsy Traveller motorhomes that use our roads—often to unsustainable levels, as happens every year on Skye and across the north coast 500 route. Such motorhomes could be charged, either physically or through a licence plate recognition system, at entry points such as the Skye bridge or a point on the north coast 500, or when disembarking from ferries.”

What happens now?

Not only will there be an 18 month consultation period for Local Authorities but work will continue with the tourism industry, COSLA and other partner organisation to produce guidance for local authorities putting in place a visitor levy scheme. The earliest a visitor levy could come into force would be spring 2026.

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.”

The Bill now includes :

• an exemption from paying a visitor levy for people in receipt of disability benefits from the UK or Scottish Governments
• a power for Ministers to cap the number of nights to which a visitor levy would apply, after consultation with councils, tourism businesses and tourism organisations and after Parliamentary approval
• a requirement for any council setting up a visitor levy scheme to establish a visitor levy forum which will discuss and advise the council on matters related to a levy in its area
• a requirement for the Scottish Government to review the Visitor Levy Bill no later than three years after the date of the first scheme coming into effect

Fiona Grahame