Highland Council has welcomed moves by the Scottish Government to introduce greater flexibility in how a future Visitor Levy Scheme could be designed, opening the door to options that better reflect the needs of local businesses, communities and the wider visitor economy.
The current framework set out in the Visitor Levy Act 2024 gives councils discretionary powers to introduce a percentage based levy, but Highland Council has pressed for additional options after widespread concern from accommodation providers who feared that percentage charges would be complex, inconsistent and difficult to administer.
The Council previously consulted on a potential 5 percent levy which could raise £10 million a year for services and facilities heavily used by visitors, and received 4103 responses through statutory consultation, drop in sessions and online and in person events.
Feedback from the Council’s Visitor Levy Reference Group and from across the tourism sector highlighted strong support for the principle of a levy, even as deep concerns were raised about the practical challenges of applying percentage based charges across a diverse accommodation landscape.
Many respondents expressed a preference for a flat rate or tiered flat rate system which they felt would be fairer, simpler and more aligned with the realities of tourism businesses across the Highlands.
Earlier this week the Scottish Government confirmed it intends to introduce legislation in early 2026 that would give councils the power to apply a single fixed amount or a range of fixed amounts based on factors such as accommodation type or time of year.
The new Bill would retain the option for percentage based levies while also addressing issues raised around third party bookings, occupancy based reporting and administrative burdens on providers.
The Scottish Government said the move follows sustained engagement with councils, tourism businesses and industry bodies who argued that flexibility was essential for a levy to work fairly across Scotland’s varied visitor destinations.
Highland Council Convener Bill Lobban said the announcement reflects the strength of local feedback.
“Having listened very carefully to the strength of feedback received from our accommodation providers and others, we pressed the Scottish Government for this change,” he said.
“This flexibility means we can consider a Visitor Levy Scheme which could work for Highland, one that could support accommodation providers and local businesses, and potentially provide multi million pound spend in our region to support, sustain and develop infrastructure and services primarily used by visitors.
“I would like to take this opportunity to thank everyone who contributed to our consultation.”
A report going before the Highland Council on 11 December recommends awaiting the new primary legislation before bringing forward further proposals for how a levy could be designed for the region.
The most recent Scottish Tourism Economic Activity Monitor data shows that between 2012 and 2023 visitor numbers to the Highlands rose from 5.16 million to 8.375 million, an increase of 62.5 percent, while direct expenditure increased from £1.118 billion to £1.68 billion over the same period.
Visitor levy schemes have already been approved in Edinburgh, Glasgow, Aberdeen and West Dunbartonshire, with seven other councils in active consultation and a further seven either pausing or choosing not to proceed at this stage.
