Stirling Council in Scotland has begun exploring the introduction of a “tourist tax,” a visitor levy that would charge overnight guests a percentage of their accommodation costs. As the tourism industry continues to grow, local trade groups, particularly the Association of Scotland’s Self-Caterers (ASSC), have raised concerns about the potential impact on small businesses. This proposed tax is part of a broader trend across Scotland, with cities such as Edinburgh and Glasgow also considering similar measures.
A New Visitor Levy Proposal
On Thursday, Stirling Council approved an initial plan to assess the feasibility of introducing a visitor levy. This levy would apply to overnight stays, with revenue generated being used to fund improvements in tourism infrastructure. The council has committed to a comprehensive consultation process, engaging with residents, local businesses, and stakeholders, including Loch Lomond and the Trossachs National Park, throughout 2025.
If the proposal moves forward, the tourist tax would not be implemented until at least June 2027, allowing time for an 18-month preparation period. Early estimates suggest that a 1% levy could generate between £1.5 million and £2.3 million annually, with a 5% levy potentially raising as much as £7.5 million.
Concerns from the Tourism Industry
The ASSC has expressed concerns about the impact of the proposed levy, particularly on small businesses. Fiona Campbell, the chief executive of ASSC, warned that small operators could become “de-facto unpaid tax collectors” for the levy. Additionally, she stressed the need for a careful and considered approach, citing the ongoing challenges that businesses are facing in the wake of the pandemic and changing licensing regulations.
Campbell also pointed out that the tax would affect both international visitors and domestic tourists, including Scots traveling within their own country. She called for a thorough economic impact assessment to ensure that the tax does not inadvertently harm the very industry it aims to support.
Stirling’s Tourism Economy: A Vital Sector
Tourism plays a crucial role in Stirling’s economy, with short-term rental accommodations alone contributing nearly £30 million in gross value added (GVA) annually and supporting approximately 960 jobs, according to BiGGAR Economics. These figures underscore the sector’s importance but also highlight the potential risks if the introduction of a visitor levy disrupts the balance between revenue generation and business sustainability.
The council has assured stakeholders that any funds raised from the levy would be earmarked specifically for tourism-related infrastructure improvements. However, there are concerns that higher accommodation costs could deter visitors and have a negative impact on local businesses.
A Wider Context: Visitor Levy Across Scotland
The Visitor Levy (Scotland) Act 2024, passed by the Scottish Parliament in May, provides the legal framework for local authorities to introduce such schemes. Stirling is not alone in considering the implementation of a tourist tax. Other regions, including Edinburgh, Glasgow, Argyll and Bute, and the Highlands, are also exploring similar measures. Advocates of the levy argue that it offers a sustainable way to fund necessary improvements to tourism infrastructure while ensuring that visitors contribute to maintaining the destinations they enjoy.
Deputy Council Leader Gerry McGarvey emphasized the importance of the consultation process and the need to understand the perspectives of various stakeholders. He reiterated the council’s commitment to transparency and inclusivity in decision-making.
Potential Impact on Travelers
Should the tourist tax be introduced, it is likely to influence the behavior of both domestic and international travelers. While a modest levy might not significantly impact travel plans, higher taxes could make destinations like Stirling less competitive compared to other regions without such levies. Visitors might also question how effectively the funds will be used, making transparency in the allocation of revenues essential for maintaining trust and satisfaction.
Global Implications for Travel and Tourism
The debate surrounding Stirling’s proposed tourist tax is part of a broader trend in global tourism. As destinations face increasing pressure from overtourism and the need to finance infrastructure improvements, visitor levies are becoming more common. However, these taxes must strike a balance between generating revenue and maintaining affordability for travelers.
For Scotland, implementing such levies could set a precedent for other regions, shaping how local governments worldwide address the challenge of sustainable tourism funding. If successful, Stirling’s model could demonstrate a balanced approach to financing tourism infrastructure while protecting local businesses and ensuring community benefits.
Key Takeaways for the Travel Industry
- Economic Impact: Accurate assessments of how the tax will affect tourism revenue and local businesses are crucial.
- Transparency and Governance: Clear communication about how funds will be allocated can help build trust among stakeholders.
- Sustainability Focus: Ensuring that the tax supports long-term tourism infrastructure will balance the needs of visitors and locals.
Preparing for the Future
As Stirling proceeds with its consultations, there is an opportunity to design a visitor levy scheme that aligns with the principles of sustainable tourism. By engaging stakeholders—including businesses, residents, and tourists—the council can create a model that addresses the diverse needs and concerns of all parties involved. With careful planning and transparent governance, Stirling could serve as an example for other destinations considering similar measures.
Stirling’s exploration of a tourist tax highlights the challenges of funding tourism infrastructure while balancing the interests of local communities and visitors. While the proposed levy has sparked debate, it also offers an opportunity to set a precedent for sustainable tourism management that other regions may follow.
