Plans are being considered for a new tourist tax in the Scottish Highlands which could add £5 per room to the cost of an overnight stay for some visitors. The charge could bring in millions of pounds each year, with the money helping to pay for local infrastructure.
Highland Council has agreed to hold a public consultation on introducing a visitor levy. Under the proposals, people staying in hotels, B&Bs and short-term lets would have to pay £5 per room, per night. A lower charge of £2 per night is being proposed for hostels and campsites.
Nine-month charge and revenue estimates
The tax would not be charged all year. It would apply for nine months, with December, January and February left out. Research suggests almost 9.4 million people visit the Highlands each year.
Councillors were told the levy could raise around £9.5 million annually, with the money helping to pay for infrastructure such as roads. Businesses providing accommodation would be allowed to keep 5% of the money they collect to help cover administration costs.
Industry response and council debate
The council has been discussing the possibility of introducing a tourist tax for seven years. Council leader and SNP councillor Raymond Bremner said the authority had been "labouring" to introduce a charge for "a long time". He also said "most people" in the Highlands supported the idea of a levy.
But not everyone is convinced that now is the right time. The Highland Hotel Association said a £5 charge would be too high and suggested £3 instead. It said its data suggested summer occupancy rates across the region had fallen by 10% compared with last year, while costs for the sector continued to rise.
HHA chairman Craig Ewan said: "Our message to Highland Council is clear: it is not 'no' to a visitor levy, but 'not now'. The industry is battling a perfect storm of soaring operating costs and weakening demand."
Other groups and amendments
The Association of Scotland's Self-Caterers said the proposed tiered fixed-rate system was simpler than the percentage-based levy the council had previously considered. However, its chief executive Fiona Campbell said councillors should have waited for the results of an independent economic impact assessment before agreeing to hold the consultation.
She said: "Businesses and communities deserve to see the full picture of what this levy could mean before they're asked to make an informed judgement."
There was also disagreement among councillors. Liberal Democrats wanted it made clear that Highland residents would not have to pay the charge when staying in another part of the region. Scottish Conservatives wanted the decision on holding a consultation delayed until the results of the economic impact assessment were known. Neither amendment received enough support and councillors voted to go ahead with the consultation.
Elsewhere in Scotland, Edinburgh became the first city to introduce a tourist tax earlier this summer, with people staying overnight in hotels, B&Bs and self-catering accommodation charged an additional 5%. Glasgow is due to introduce a similar 5% levy in January 2027, while Aberdeen plans to introduce a 7% charge from April 2027 at the earliest.
