Scotland proposes tourist tax for overnight stayers

A young couple at Calton Hill with the city of Edinburgh in the background. Photo / Getty Images

A major country in the United Kingdom could be set to introduce a visitor levy.

The Daily Mail has reported that Scotland is looking to introduce an extra fee for those visiting the country with the intention of reinvesting it into facilities and services used by tourists.

The Scottish Parliament’s local government, housing and planning committee unveiled the plans at the first stage of the Visitor Levy Bill last week. If passed it will give local authorities the opportunity to incorporate a levy into overnight accommodation services.

Following the news, the Holyrood committee voted by a majority for it, stating that if the rate was relatively modest, it would be “unlikely” to have a detrimental impact on local authority areas.

A classic viewpoint in Edinburgh Old Town above the Grassmarket. Photo / Getty Images

Ariane Burgess, convener of the committee, said: “In supporting the Visitor Levy Bill at stage one, a majority of the members of the committee recognise its potential to positively impact Scotland’s tourism sector”.

She added: “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”.

The Daily Mail has reported the levy will likely provide “significant benefits” to locals and tourists alike. It will also require monitoring and local reporting so there is constant transparency and accountability.

While the majority supported the bill, some committee members raised the issue of the timing of the levy as the world - and particularly the tourism sector - continues to recover from Covid-19.

They also questioned whether the introduction of the fee could cause an increased burden for administrative workers.

📣Read our Stage 1 Report on the Visitor Levy (Scotland) Bill

Following our consideration of the Bill, most of the Committee has supported the general principles behind the legislation.

Report➡️https://t.co/fuv5WnFotB

Convener @ArianeBurgessHI explains more⤵️ pic.twitter.com/18xMZiUiJd

— Local Government, Housing and Planning Committee (@SP_LocalGov) December 21, 2023

On the matter, Burgess said: “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”.

Scotland wouldn’t be the only tourist destination to introduce a tax scheme. Elsewhere, Venice, Italy, will bring in a tax to prevent overcrowding, charging tourists €5 ($8.76) per person to visit the floating city between 8.30am and 4pm.

Paris, France, is reportedly weighing up whether to triple the city’s tourist tax which currently varies from €0.25 ($0.44) a night for basic hotels to €5 ($8.76) a night for high-end accommodation.

Barcelona, Spain, introduced a tourist tax in 2018 and increased it almost every year with the next increase occurring in April 2024. Euronews reported the fee will rise from €2.75 ($4.82) to €3.25 ($5.69).

Olhao, Portugal, charges tourists €2 ($3.50) a night in its popular season between April and October and Valencia, in Spain, is introducing a tourist tax in the coming months with visitors asked to pay up to €2 ($3.50) depending on accommodation.