Scotland’s government has introduced new legislation to expand how local councils can impose a visitor levy on overnight stays in hotels, bed and breakfasts, and similar spots. The Visitor Levy Amendment Scotland Bill, published on January 7, 2026, aims to give councils more options to charge a fixed amount instead of just a percentage of room costs, helping fund local tourism services amid rising visitor numbers.
This move comes as tourism rebounds strongly in 2026, with places like Edinburgh set to launch their levy in July. Officials say it will boost local economies without a nationwide mandate, letting each area tailor the tax to its needs.
Background on Scotland’s Visitor Levy
Scotland first passed the Visitor Levy Scotland Act in 2024, allowing councils to add a charge on short-term accommodations. This was meant to raise money for services like public transport, parks, and events that tourists use.
The original law limited the levy to a percentage of the booking cost, often around 3 to 5 percent. Now, with tourism hitting record highs—over 15 million overnight stays expected in 2026—the government wants more flexibility.
Many European countries, such as France and Italy, already use similar taxes successfully. Scotland’s push follows debates on how to balance visitor growth with local needs, especially after the pandemic recovery.
Councils like Edinburgh and Glasgow have been quick to adopt plans. Edinburgh approved its scheme in late 2025, targeting implementation by mid-2026.
Key Changes in the New Bill
The amendment bill proposes letting councils choose between percentage-based or fixed-amount levies. This could mean a flat fee, say £2 to £5 per night, varying by location or season.
For example, a busy city like Edinburgh might set higher rates in summer, while rural areas could opt for lower fixed charges to attract more visitors year-round.
Here are some potential fixed levy options under the bill:
- Urban areas: £3 to £5 per night for hotels and hostels.
- Rural spots: £1 to £2 for bed and breakfasts or campsites.
- Seasonal adjustments: Higher in peak months like July and August.
- Exemptions: Possible for long-term stays or certain groups, like students.
This flexibility aims to make the system fairer and easier to manage. The Scottish Government plans to work with industry groups to refine these details before a parliamentary vote expected by spring 2026.
If passed, councils could start applying the new rules as early as late 2026, building on existing schemes.
The bill also includes measures for transparency, requiring councils to consult businesses and residents before setting rates.
Impacts on Tourists and Businesses
Travelers to Scotland might see small extra costs on their bills, but experts say it won’t deter visits. Similar taxes in places like Hawaii and Norway have not hurt tourism numbers, and Scotland’s levy is designed to be modest.
For a family of four staying a week in Edinburgh, a 5 percent levy on a £200 nightly room could add about £70 total. A fixed £3 per night option might cap it at £84, depending on the final setup.
Business owners have mixed views. Some hoteliers worry about added paperwork, while others see benefits from improved local services.
| Aspect | Potential Positive Impact | Potential Negative Impact |
|---|---|---|
| Tourism Revenue | Funds for better attractions and infrastructure | Slight increase in trip costs for visitors |
| Local Economies | More money for events and maintenance | Administrative burden on small B&Bs |
| Visitor Experience | Enhanced services like cleaner streets and transport | Possible perception of Scotland as pricier |
| Business Competitiveness | Level playing field with taxed Airbnbs | Risk of fewer bookings if rates are too high |
Overall, the levy could generate millions for councils. Edinburgh alone projects £35 million annually to reinvest in the city.
This fits into broader UK trends, with England considering similar mayoral powers for visitor taxes by 2027.
Reactions from Stakeholders
Hospitality groups have welcomed the fixed-amount option as simpler than percentages. The Scottish Tourism Alliance called it a step toward transparency, urging close collaboration to avoid overburdening small operators.
Critics, including some bed and breakfast associations, argue it’s another cost-of-living hit for Scots staying domestically. They point out that locals, not just tourists, will pay when booking within Scotland.
Politicians are divided. SNP leaders praise it for empowering communities, while opposition parties question if it goes far enough without national guidelines.
Public sentiment on social media shows support for funding tourism but concerns over rising prices. Recent polls indicate 60 percent of Scots back the levy if funds stay local.
Industry leaders stress the need for clear guidelines to prevent uneven application across councils.
What Happens Next for the Levy
The bill now heads to the Scottish Parliament for debate and possible amendments. If approved by May 2026, councils could roll out changes by year’s end.
Tourists planning 2026 trips should check local council websites for updates. Places like Highland and Stirling are already consulting on their schemes.
This legislation aligns with global shifts toward sustainable tourism, as seen in Wales and Romania’s recent overhauls.
In the long term, it could set a model for other UK regions facing tourism pressures.
What do you think about Scotland’s visitor levy? Share your thoughts in the comments below and spread the word to help others stay informed.
