The government is taking advantage of the tourism boom by imposing a controversial overnight tax

EDINBURGH – The Scottish Parliament is considering legislation that would introduce a new tourist tax. If passed, the law would enable local authorities to impose a tax on overnight visitors, a measure aimed at helping manage the effects of the country’s booming tourism industry.

The Visitor Tax (Scotland) Bill, which was introduced on 24 May 2023 and is currently in its final stage, will allow councils across Scotland to levy a tax on accommodation charges such as hotel rooms and short-term rentals if they wish.

According to the draft law, The revenues collected from the tax must be used to develop tourism facilities/services Achieving the specific objectives of each visitor tax scheme.

This suggests that the aim of the tax is to direct funds towards enhancing the tourism experience and managing impacts, rather than just general municipal revenues.

Scotland, known for its historic cities, rugged highlands and famous hospitality, has seen a A noticeable increase in the number of visitors In recent years, with a record number 3.9 million external tourists It was registered in 2023.

Although this influx is a boon for the economy, it has also strained infrastructure and public services in some popular destinations.

“In areas where there are greater pressures on the local environment and activities that enhance the tourist experience, communities face pressures on their infrastructure as a result of visitor numbers.” The policy memorandum accompanying the bill stated:

If passed, the optional tax would allow municipalities to collect a percentage of their accommodation costs from visitors. The rate will be set locally but within a national framework to ensure consistency.

For the Scottish government, led by the pro-independence Scottish National Party, the proposed visitor tax represents… A step towards greater financial empowerment for local communities. Municipalities will be required to consult with businesses and residents before implementation.

“Giving local authorities this power will strengthen local democracy by giving them new discretionary financial power that they can choose to use in their areas.” The policy note stated that.

Tourism taxes on overnight stays are common across Europe, and exist in major destinations such as Amsterdam, Berlin and Rome as well as smaller jurisdictions.

Revenues may go to general municipal funds or be allocated to tourism-related investments such as infrastructure, marketing or environmental protection.

In Scotland, the government envisages using visitor tax revenues “Develop, support and sustain facilities and services that are substantially intended for or used by those visiting a local authority area for leisure purposes.”

The proposal has faced some opposition from sectors of the tourism industry, which have argued… It could make Scotland a less competitive destination. But analyzes suggest that accommodation fees represent a relatively small portion of total visitor spending.

If the legislation is passed, Scotland will join a handful of countries in the British Isles that levy taxes on visitors, including Britain itself, which charges guests in some areas.

It is estimated that a 3% tax could raise more than £100 million a year across Scotland based on accommodation revenues. Edinburgh alone can raise more than £25 million a year.

The first Scottish municipalities could introduce taxes as early as next year.

For a country that values ​​its reputation for warm hospitality, the visitor tax raises complex questions about balancing economic drive with sustainability and livability for local communities.

Its passage could make Scotland a test case for managing the burdens of overwhelming popularity.

Read also: Tourism in Scotland rebounds beyond pre-pandemic levels!

reference: Visitor Levy (Scotland) BellScottish Parliament