SCOTTISH councils are set to be given the powers to implement a tourist tax on visitors to their area.
On Thursday, the Scottish Government introduced the Visitor Levy (Scotland) Bill to Holyrood, setting out the plans for the scheme.
We told how the flexibility it gives councils to set the rate for the levy has been hailed by Cosla.
But what is a tourist tax, and what will the one in Scotland look like?
READ MORE: Tourist tax: New bill to allow Scottish councils to bring in levy
What is a tourist tax?
The 36-page bill sets out a variety of parameters for what the tourist tax, or visitor levy, will look like. It does not set out a limit on the percentage that councils can charge visitors coming to Scottish cities and towns, and will allow authorities to set this themselves.
Essentially, it charges tourists a percentage of their accommodation costs to support local services.
The tourist tax will apply to hotels, hostels, guest houses, B&Bs, self catering accommodation, camping sites and caravan parks, as well as boat moorings and berthings. It also covers accommodation “in a vehicle or on board a vessel” which is permanently or mostly housed in one place, and any other place where a room or accommodation is offered that is not the visitor's “only or usual place of residence”.
Tourist levies are already in place in many countries across the world including France, Germany and New Zealand, but would be a UK first when introduced.
How much will it cost tourists?
A £2 per night tax for those visiting Edinburgh has been suggested, but as we told above the final rate will be up to each individual local authority. They will set a percentage rate for the levy to be added to accommodation invoices, and tourists will be provided with a breakdown of how much tax they have to pay. Asked if there would be a limit set on how high councils could put this percentage rate, public finance minister Tom Arthur said: “The bill as introduced does not set a limit.”
What will councils be able to spend the money raised on?
Councils will be given autonomy and flexibility to decide on how to spend the money raised from the tourist tax, but all funds raised must be reinvested into the local community, on facilities and services used by visitors, benefitting the local area and economy, and enhancing the tourist experience. There is a bit of a debate about whether or not this could be expanded to include litter collection or road management.
“The legislation as set out creates a wide scope for facilities and services which support the visitor economy,” Arthur said, when asked if litter would count.
READ MORE: Scottish independence support at 53 per cent, new poll finds
“So decisions around the implementation of the visitor levy on decisions around how that revenue is used will have to be consistent with the legislation.
“This will be a local power, it will be a discretionary power for councils and they will ultimately be the ones who have to determine whether or not to administer it,” he added.
The plans are part of the New Deal for Local Government, which aims to give local authorities more financial flexibility.
When will we see the first tax introduced?
With the legislation still to go through the normal stages of scrutiny in Holyrood, and with lengthy consultations with local communities and businesses to follow, Arthur said it would still be a few years until Scotland sees its first tourist tax.
He told The National: “It would not be until the first half of 2026, that’s what we’re anticipating. “Of course that timescale will be a subject to the parliamentary process, which is a matter for parliament.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here