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Inverness
Thursday, February 13, 2025

Highland Tourism Faces Uncertain Future as Visitor Levy Debate Heats Up

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Highland Council’s Visitor Levy Scheme, currently under consultation until March 31st, has sparked serious debate, with local leaders and hospitality representatives raising significant concerns about its potential impact.

Inverness Councillor Dr Michael Gregson has commended the Highland hospitality sector for its thoughtful contributions during a consultation event hosted at Eden Court by Visit Inverness Loch Ness, highlighting the importance of collaboration.

Dr Gregson acknowledged the dedication of Highland Council staff, local chambers of commerce, the Highland Hotel Association, and the Scottish Tourism Alliance, whose members have been instrumental in shaping the discussion around the proposed levy.

Accommodation providers are at the centre of the debate, with calls for Highland Council to address the unique challenges posed by the scheme and advocate for necessary adjustments with the Scottish Government.

The scheme’s intention to fund improved facilities and infrastructure for sustainable tourism has been broadly supported, but critics argue that its design fails to account for the distinct characteristics of the Highland region.

Concerns have been raised that the levy’s burden will disproportionately affect accommodation providers in Inverness, a city located in a predominantly rural area, unlike urban centres such as Edinburgh or London.

Stakeholders have warned that additional costs like the levy, coupled with high travel expenses and the challenges of rurality, could deter tourists from visiting the Highlands.

The lack of clarity on mechanisms for collection and administration has also been highlighted, with particular concerns about the scheme’s coverage of cruise ships, motorhomes, and camping—key components of Highland tourism.

Seasonality remains a critical issue, with fears that the levy could push some providers to shorten their operating periods, resulting in job losses and economic strain for communities dependent on tourism.

Critics have suggested that a flat fee approach, adopted by other regions with similar levies, may be more suitable than the proposed 5% charge on all bed nights, which many believe to be excessive.

Inverness, which already struggles with lower occupancy rates compared to other Scottish cities, may face further challenges if increased costs drive down visitor numbers, impacting not only hotels but local businesses as well.

The proposed scheme’s broad application has also drawn criticism for potentially charging Highland residents the levy when staying overnight in Inverness for family visits, hospital appointments, or cultural events.

A truly independent economic impact assessment has been suggested by some within the sector to better understand the long-term implications of the levy on Highland tourism.

Despite these concerns, there is a willingness among stakeholders to collaborate with the Council to ensure that the final scheme strikes a balance between supporting the hospitality sector and achieving sustainable tourism goals.

Dr Gregson expressed optimism about the ongoing dialogue, emphasising the importance of gathering diverse opinions and encouraging both councillors and MSPs to take note of the feedback before the consultation closes.

As the debate continues, the future of Highland tourism hangs in the balance, with stakeholders urging careful consideration to protect one of the region’s most vital industries.

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