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The National (Scotland)
The National (Scotland)
National
Andrew Smart

What is a tourist tax? How this proposed idea would work in Scotland

MSPs in Holyrood are discussing the implementation of a tourist tax for popular areas across Scotland.

If this comes to pass, the Visitor Levy (Scotland) Bill would allow local authorities to charge tourists for overnight stays in hotels, B&Bs and holiday lets.

The new tax has been proposed to help control visitor numbers to places like the Scottish Highlands while raising money for important projects.

Similar measures have been implemented in cities like Manchester and Venice in Northern Italy.

How much would the proposed tourist tax cost visitors?

The Scottish Government's proposed tourist tax, which would allow councils in Scotland to generate funds from overnight accommodation, would be based on a percentage cost with this rate being set by local lawmakers.

This rate would not include the commission paid to online booking services or room add-ons such as food and drink.

Showcasing an example of how this levy would work, the Scottish Government states that a 1% levy on a £200 room would result in a £2 tax.

The National: The Scottish Parliament is set to discuss a Tourist TaxThe Scottish Parliament is set to discuss a Tourist Tax (Image: Getty)

When could the tourist tax be introduced to Scotland? 

If passed, the Scottish Government has suggested that the levy would be implemented by around 2026 (depending on the timescales).

Edinburgh City Council and Highlands Council could be among the first to introduce the tax with both being supportive of the move.

These areas are also some of Scotland's most popular destinations with thousands descending to these places each year.

Over four million people visit the country's capital every year with this said to inject around £1.2 billion into the local economy.

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