Falkirk Council considering introducing tourist tax which could raise £1m

Falkirk Council is looking at introducing a tourist tax with the hope that it will bring in more than a million pounds of income every year.

A report to next week’s council executive suggests adding a 5% visitor levy to tourist accommodation, which would help pay for services that tourists are likely to use.

According to the report, Falkirk now attracts over 800,000 unique visitors, over 500,000 of whom stay in accommodation overnight in the area—contributing to a visitor economy that is now worth £150 million.

Major visitor attractions include the Kelpies, which attract 850,000 visitors per year and the Falkirk Wheel, which gets 500,000 visits per year, although visitor numbers are continuing to grow, and the Kelpies aim to achieve one million visits a year by 2028.

With the newly opened Rosebank distillery in Falkirk, along with plans for a new town hall with theatre, and a £3 million art park that is being developed through the local Growth Deal, the council believes the area’s visitor economy will continue growing.

Last year, the Visitor Levy act gave Scottish local authorities the power to apply a fee to those staying in paid accommodation within their area.

This would be collected at point of sale by businesses and passed to the council for spending on projects that will all be linked to tourism and the visitor economy.

But the paper points out that much of the spending will also benefit local people.

Projects could include: street cleansing and litter management in places substantially used by visitors; parks maintenance and management; increased accessible toilet provision; town dressing and festive lighting; and events and cultural programming.

Officers hope that the new town hall and theatre currently planned for Falkirk will be able to benefit from the levy.

Four local authorities in Scotland have said they will implement the levy – Edinburgh, Stirling, Highland and Argyll & Bute, while Glasgow are also looking to introduce a tourist tax – and Falkirk Council officials are closely following their progress.

At the moment, they are all proposing a levy of 5% and it is likely Falkirk Council would follow suit if they choose to introduce a levy.

Consultants commissioned by the council have estimated that a levy could generate revenues between £1,000,000 and £1,500,000 before costs (such as set up and collection costs).

However, the report cautions that this estimate of levy funds would need further investigation and more in-depth analysis if the council proceeds with the scheme.

At the meeting next Thursday, councillors will be asked to agree that officers can develop a draft visitor levy scheme and a programme of consultation.

The process will take at least two years as an 18-month notice period is required.

If agreed, an update report seeking a final decision on a visitor levy would be brought back to the council’s Executive in 2026/27.

Falkirk Council will consider the matter at a meeting of its Executive on Thursday, January 14 at 10 am in Grangemouth Community Education Unit, Abbots Road, Grangemouth. The meeting will also be livestreamed on Falkirk Council’s YouTube channel.