Falkirk Council Considers Introducing Tourist Tax to Boost Revenue
Falkirk Council is contemplating the implementation of a tourist tax that could potentially generate over £1 million annually. The proposal is akin to those already planned in Edinburgh. The council acknowledges the significant influx of tourists, with attractions such as the Kelpies drawing in around one million visitors each year, half of whom seek overnight accommodation in the area contributing to a £150 million visitor economy.
The renowned Kelpies, hosting 850,000 visitors annually, with the Falkirk Wheel close behind at 500,000 visits, are witnessing a steady growth in footfall, aiming to achieve a million visits annually by 2028. The unveiling of the Rosebank distillery, in conjunction with forthcoming projects like a new town hall with a theatre and a £3 million art park from the local Growth Deal, underpin the council’s optimism for sustained growth in the visitor economy.
Last year marked the Scottish local authorities’ empowerment to levy fees on paid accommodations within their regions through the Visitor Levy act. The revenue from this levy will be allocated towards tourism-linked projects, benefiting both visitors and locals. Potential projects encompass street cleaning in tourist-dense areas, park maintenance, enhanced amenities, town embellishments, and culture-centric events.
Falkirk Council has consulted experts who estimated that a five per cent levy could yield between £1-1.5 million, pre-deducting operational costs. The council will further deliberate on this proposition to develop a draft scheme and initiate a consultation program. The definitive decision on the tourist tax is anticipated in 2026/27, following an 18-month notification requirement.
Other Scottish councils like Edinburgh, Stirling, Highland, and Argyll & Bute have committed to implementing a similar tax, with Glasgow contemplating the same. Falkirk Council closely monitors these initiatives and is likely to align its levy structure with a five per cent rate, should the proposal move forward.
In Summary, Falkirk Council is exploring the possibility of introducing a tourist tax to bolster revenue, following in the footsteps of other Scottish councils. The potential levy aims to harness the significant tourism influx, particularly around popular attractions like the Kelpies, to fund various tourism-related projects for the benefit of visitors and local communities. If approved, the tax could significantly contribute to the council’s revenue stream in the years to come.