What is the Scottish visitor levy (tourist tax) and where does it apply?

Full answer

The Visitor Levy (Scotland) Act gave Scottish local authorities a new devolved power, not available to councils in England, Wales or Northern Ireland in the same form, to introduce a visitor levy -- commonly described as a tourist tax -- charged as a percentage of the accommodation cost for overnight stays in hotels, guesthouses, self-catering accommodation and similar paid lodging within their area. Unlike a flat per-night fee used in some other countries, the Scottish model is generally a percentage add-on to the accommodation cost itself, meaning the actual amount paid varies with the price of the room booked, and each individual Scottish council must choose independently whether to introduce a levy at all, and if so, at what percentage rate, following local consultation, meaning there is no single national rate applied uniformly across Scotland. The City of Edinburgh Council was among the first, and most prominent, Scottish local authorities to move toward introducing a visitor levy, reflecting the exceptionally high volume of tourist accommodation demand the city experiences, particularly during the Edinburgh Festival period, and other Scottish council areas have considered or moved toward adopting their own levies since the legislation came into force. Revenue raised through the levy is intended to be reinvested locally in services that support tourism and the visitor economy, such as local infrastructure, public spaces and events. Visitors and accommodation providers should check the specific council area they are staying in or operating within for the current applicable rate, since it can differ significantly from one part of Scotland to another, or not apply at all in areas that have chosen not to introduce one.

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