Angus MacDonald, MP for Inverness, Skye, and West Ross-shire, has expressed concerns over the Scottish Government’s proposed tourism visitor levy, warning it could harm rural economies while failing to address local priorities.
“Tourism is the backbone of many rural communities in my constituency,” said Mr. MacDonald.
“We must ensure that any visitor levy strengthens, not weakens, this vital sector while addressing the pressures tourism places on local infrastructure.”
The UK’s high VAT rate on tourism—20%, the second-highest in Europe—already places Scotland at a competitive disadvantage in international tourism markets.
“Adding a further tax risks pricing Scotland out of an already challenging market, especially when the World Economic Forum ranks the UK poorly for international tourism price-competitiveness,” Mr. MacDonald noted.
Domestic tourism, accounting for 60% of Scotland’s tourism spend, also faces challenges as UK residents contend with rising costs.
“A poorly implemented visitor levy could discourage domestic visitors, hitting small businesses in rural areas the hardest,” he added.
Mr. MacDonald highlighted three key issues with the current proposal:
- Revenue Allocation: “Funds raised must stay local,” said Mr. MacDonald. A survey by SkyeConnect revealed that 90% of respondents believe revenue generated on Skye should benefit the island directly. However, the current plan sees all funds going to a central Highland Council budget, with no guarantee they will return to the communities that generate them.
- Administrative Burdens on Small Businesses: Many self-catering and B&B operators are concerned about the strain of administering the levy. “These businesses are already stretched thin,” Mr. MacDonald emphasised. “The system must not create unnecessary red tape.”
- No exclusions Current legislation excludes cruise ships, single day tour buses, and camper vans—groups that often place significant strain on local services without contributing to their upkeep. “This is a glaring omission,” said Mr. MacDonald. “All visitors, should pay their fair share.”
Mr. MacDonald acknowledged the principle behind the levy:
“A visitor levy could help fund vital infrastructure and services, but only if it is fair, transparent, and addresses the real challenges facing communities.”
He urged the Scottish Government to prioritise community voices and ensure the policy benefits local areas.
“The voices of those in hospitality must be heard,” Mr. MacDonald concluded.
“This is an opportunity to improve our communities—not a chance to plug gaps in council budgets or place undue burdens on small businesses.”
