Scotland's Tourist Sector: A New Source of Revenue Amidst Budget Cuts

by XPRESS, 16 January 2024

As the Visitor Levy (Scotland) Bill goes before MSPs for a vote, the Scottish National Party administration ponders additional ways to bolster Scotland's crucial tourism industry and its local councils.

The proposed legislation suggests applying a percentage surcharge on visitors' accommodation costs, affecting those in hotels, hostels, bed & breakfasts, self-catering accommodations, campsites, and

caravan parks.

Exemptions include wild campers, motorhomes, and camper vans that do not stay at designated sites.

The Scottish Greens initially proposed the legislation before joining the executive.

The levy could cause a decrease in tourist numbers as a result of the economic challenges posed by the cost of living crisis.

Scottish Tories have expressed concerns that councils may use the revenue to fill budget gaps left by finance minister Shona Robison's brutal cuts.

Scotland is incredibly fortunate to be such an attractive tourist destination, but this puts a huge strain on local services, ranging from public toilets to bin collections. - Ross Greer

Murdo Fraser, Shadow Secretary for Business, Economic Growth and Tourism, asserts that the levy could benefit local services if the funds are directly allocated accordingly.

The Bill will be discussed during the first stage of debate on Tuesday.

Our national tourism strategy talks about conditions for success and one of those conditions is right policy. - Marc Crothall

The Scottish National Party (SNP) and Greens reached an accord regarding a tax in their 2019 budget negotiations, yet its application was deferred as a result of the Covid-19 pandemic.

Ross Greer, West of Scotland Green MSP, argues that the levy is fair because tourists do not pay council tax, and visitor levies are already common in Europe and beyond.

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Benefits and Concerns of the Proposed Tourist Tax

The tourist tax has sparked a heated debate among stakeholders, with arguments both for and against its implementation.

There would be a benefit from a visitor levy if we could be sure that the money would go directly to enhancing local services to make those locations more attractive to tourists. - Murdo Fraser

While some believe it could provide much-needed revenue for local authorities and enhance services to make tourist locations more attractive, others express concerns that it may deter tourists due to the

added cost or be used by councils to fill budget gaps instead of improving tourism infrastructure.