Councils across Scotland are set to gain greater control over how they design and apply a visitor levy, after the Scottish Government confirmed that new legislation will be brought forward early next year.
The Visitor Levy Act passed in 2024 gave local authorities the power to introduce a charge on overnight stays based on a percentage of accommodation costs, with all revenue focused on improving local tourism services and facilities.
The Government now intends to widen that framework so councils can choose to apply a fixed fee instead, giving them the freedom to tailor any levy to the needs of their area.
The bill will also allow different fixed amounts to be set for different locations, times of year or types of accommodation, offering local authorities a level of precision that many have called for since the Act was introduced.
A further change will clarify how any levy is applied when bookings are made through online platforms and third party agents, ensuring the system is clear and consistent for accommodation providers and councils alike.
The Scottish Government said the new measures reflect ongoing discussions with councils and the tourism sector following the Act’s introduction last year.
Public Finance Minister Ivan McKee said:
“The visitor levy empowers councils by giving them a new way to raise money for investment in tourist services and facilities.”
“Our aim has been to give councils the flexibility to design a levy that works for their areas, while ensuring businesses can easily understand what it means for them.”
“The Act passed last year was an example of partnership working between the Scottish Government, local government and tourism businesses.”
“Through regular discussions with our partners, it became clear that further flexibility would be welcomed.”
The new bill will be introduced in early 2026 and will form the next stage of the Government’s plan to create a visitor levy system shaped locally rather than centrally.
Tourism bodies, councils and accommodation providers have repeatedly stressed the importance of clarity and simplicity in any future scheme, particularly in rural and island communities that depend heavily on seasonal trade.
The Government’s decision to amend the Act now reflects growing interest from councils that want the option of designing a levy that suits the scale, character and visitor patterns of their area.
The bill will also provide updated guidance on the information accommodation providers must share with their local authority, helping to streamline administration for small businesses and independent hosts.
For many communities, the proposed changes represent a chance to make the levy more predictable for visitors while ensuring the benefits of tourism continue to support local services, transport networks and public spaces.
The next phase of legislation will therefore be watched closely by councils across the Highlands, where visitor numbers remain high and where the flexibility to set a fixed or variable charge could play a significant role in future planning.
