Does the Council have to introduce a visitor levy?
It is not mandatory for the Council to introduce a visitor levy. However, with growing tourism pressures and shrinking public sector budgets, the Council has to investigate options that could help to support services and infrastructure that both residents and visitors enjoy.
When could a visitor levy come into effect in ߣsirÊÓƵ and Bute?
The Council has not yet decided whether a visitor levy will be introduced. However, if a scheme were progressed, it could not come into force before the end of 2026 due to the necessary steps required.
How can I have my say on the ߣsirÊÓƵ and Bute visitor levy?
There will be opportunities over the coming months for residents, tourism businesses and organisations and anyone else who could be affected by a visitor levy to have their say. Details will be publicised once the formal engagement programme has been finalised by Councillors. There is an initial Pre-Consultation Survey on the levy available here:
What tourist businesses would be included in the visitor levy?
The final scope of the levy is still to be determined, but can only apply to overnight visitor accommodation such as hotels, B&Bs, guesthouses, campsites and caravan parks, short term lets etc.
Who would have to pay the levy?
A levy would apply to visitors staying overnight in hotels, hostels, guest houses, bed and breakfasts, self-catering accommodation, camping sites and caravan parks. Details such as number of nights charged and potential exemptions will be part of the consultation and subject to approval by Council.
How much would visitors have to pay?
Visitors would have to pay a percentage rate based on the accommodation cost. Council will approve the rate and possible exemptions following the consultation process. The legislation only requires that the visitor levy is charged if a person actually spends a night at an accommodation business. Businesses would only be required to remit the levy charged to the local authority after a stay is complete.
Are there any statutory exemptions from the Visitor Levy?
Section 13 of the Visitor Levy (Scotland) Act exempts all individuals in receipt of the following UK disability benefits, payments, or allowances from paying the levy:
- Disability Living Allowance
- Disability Assistance
- Attendance Allowance
- Pension Age Disability Benefit
- Personal Independence Payment
The legislation’s scope does not apply to people who are using overnight accommodation as their only or primary residence, people staying on certain gypsy / traveller sites and people who use accommodation on overnight transport like ferries, cruise ships, or sleeper trains.
Are there going to be any local exemptions?
Local authorities have power to introduce local exemptions that meet their own community needs and to help limited administrative / financial burden on businesses should they introduce any additional exemptions. We will identify potential local exemptions as part of the local consultation process.
How would the proceeds of a visitor levy scheme be spent?
The legislation requires that net proceeds of a visitor levy scheme must be spent on developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting the scheme area for leisure or business purposes (or both). In other words spent to benefit our visitor economy. The consultation process will help shape how the proceeds of the levy could be spent locally.
Who would collect the levy from visitors?
Accommodation providers would be responsible for collecting the levy from visitors and paying it to the Council. However, much consultation and work on collection processes will be required to determine how this would operate in practice, hence the long lead in time for the scheme.
Will the levy be included in business turnover for the VAT threshold?
Amounts charged for the visitor levy will be included in the turnover that is used to determine if businesses need to register for VAT. Local authorities have discretion on whether to include or exclude businesses that fall below the VAT threshold, but the scope of any scheme has yet to be determined in ߣsirÊÓƵ and Bute.
What support will be given to businesses collecting the levy?
This will be determined once the scope of the levy is agreed and therefore which accommodation providers would be responsible for collecting any levy from visitors. However much consultation and work on collection processes and systems will be required to determine how this would operate in practice, hence the long lead in time for the scheme.
Is there going to be a levy on cruise ships?
The Visitor Levy does not currently include cruise ships but the Scottish Government intends to launch a formal public consultation on a cruise ship levy before the end of 2024. It is anticipated that details will be publicised in national and local media.
Is there any further information available?
VisitScotland has a summary of the guidance on the visitor levy on their website, including FAQs for tourism businesses -
The proposal to start developing plans for a visitor levy in ߣsirÊÓƵ and Bute was agreed by a Short Life Working Group of the Council on 1 October 2024. You can read the report and minutes here: Agenda for Short Life Working Group on ߣsirÊÓƵ and Bute Council Visitor Levy on Tuesday, 1 October 2024, 2:00 pm - ߣsirÊÓƵ and Bute Council .
The council’s web page (ߣsirÊÓƵ and Bute Visitor Levy) on the Visitor Levy will be updated with information as decisions are made by elected members.