Cairngorms Business Partnership, Caithness Chamber of Commerce, Inverness Chamber of Commerce, and West Highland Chamber of Commerce have written today to Ivan McKee, Minister for Public Finance, requesting an amendment to the Visitor Levy (Scotland Act) 2024 (Tourist Tax).
They are calling for local authorities to have the option of setting a flat or banded rate, rather than being required to implement a percentage-based levy.
In December, the four Chambers jointly called on The Highland Council to pause the implementation of the levy. Since then, they have engaged closely with their member businesses, and it is clear that while a slight majority support the principle of a visitor levy, there is no business support for The Highland Council’s current proposal.
On 12 February, Highland Council Convener Bill Lobban wrote to the Minister, reiterating the Council’s longstanding preference for a flat-rate levy and asking whether there is scope to amend the regulations. The four Highland Chambers fully endorse Councillor Lobban’s request.
Highland accommodation providers have raised a number of concerns about The Highland Council’s proposal, including:
- A percentage-based rate will be burdensome to collect.
- The levy is subject to VAT.
- The levy will apply to all visitors using overnight accommodation, including Highland residents traveling for business or medical appointments.
- Unlike in other council areas, there is no proposed compensation for businesses to cover the cost of collecting the levy.
- The Highlands’ seasonal tourism economy is not reflected in the proposal, which would apply the levy year-round.
Additionally, accommodation providers feel that key details should have been clarified before the consultation period to allow respondents to make informed choices. These include:
- The collection method is still unknown, meaning the administrative burden remains unclear.
- Highland Council’s plans for spending the levy are less developed compared to other local authorities.
- Highland Council has not yet specified who will sit on its Visitor Levy Forum, so it is unclear who will be advising on spending decisions.
The Chambers continue to work closely with The Highland Council on this issue and are optimistic that substantial changes will be made once consultation responses have been fully considered.
In the meantime, they reiterate their call for a pause on implementation and welcome the Highland Council Convener’s request for the legislation to be amended.
Issued on behalf of:
Craig Mills, CEO, Cairngorms Business Partnership
Trudy Morris, CEO, Caithness Chamber of Commerce
Colin Marr, CEO, Inverness Chamber of Commerce
Frazer Coupland, CEO, West Highland Chamber of Commerce