Highland Council is considering a tourist tax proposal that could potentially generate up to £11 million annually to support staycation destinations. The proposed 5 per cent visitor levy would apply to overnight stays in hotels, B&Bs, and holiday lets, following the approval of such a tax nationwide by MSPs in May. If the plans are approved, there would be an 18-month implementation period leading up to the official introduction of the visitor levy in September 2026.
The Highlands region attracts an estimated six million visitors each year, including day trippers, tourists, and cruise passengers. Home to iconic landmarks like the North Coast 500, the Isle of Skye, and Cairngorms National Park, the Highlands are a popular destination for both domestic and international travellers. The proposed visitor levy aims to leverage this tourism influx to invest in local infrastructure and amenities.
Councillors are set to vote on launching a 12-week consultation to gather public opinion on the proposed policy. Chairman of the Economy and Infrastructure Committee, Ken Gowans, highlighted that the consultation will seek input on the levy rate and how the generated funds should be allocated. He emphasised the potential of the tax to raise between £10 million to £11 million annually, with the prospect of even higher revenues.
Frazer Coupland, the chief executive of Lochaber Chamber of Commerce, expressed enthusiasm about the prospect of reinvesting millions back into local communities. However, he stressed the importance of ensuring equitable distribution of the funds across diverse communities within the region. The consultation process will also need to address concerns about the impact of the levy on local residents staying in accommodation for essential reasons such as hospital appointments.
The Highland Council’s vast area includes the UK’s largest road network, over 4200 miles of roads, more than 1000 miles of footpaths, and around 2200 bridges and culverts. The council had previously supported a tourist tax proposal along with other local authorities like Aberdeen and Edinburgh. According to the new legislation, accommodation providers will be responsible for collecting the levy, with the revenues earmarked for enhancing facilities and services benefitting tourists and visitors.
In summary, the Highland Council’s tourist tax proposal aims to harness the economic potential of tourism to improve local infrastructure and services. By involving the public in the decision-making process through consultations, the council seeks to ensure that the levy benefits the entire community while addressing concerns about fairness and inclusivity. If implemented successfully, the visitor levy could contribute significantly to sustaining and enhancing the Highlands’ status as a premier staycation destination.