Stirling businesses fear customer decline as council votes for visitor levy

Businesses across Stirling are worried they may lose customers after the council voted to introduce a Visitor Levy.

In December, councillors voted for a year round 3% levy for all overnight paid visitor accommodation stays in the Stirling Council area.

It comes into effect for stays on or after June 14, 2027, and also applies to bookings made from January 1, 2027.

The 3% levy is a reduction on the 5% rate that was initially proposed in the draft scheme – but businesses in the area fear the new tax will have an impact on the number of visitors.

Stirling Gin is Scotland’s smallest distillery nestled at the foot of Stirling Castle.

Its manager Elle McCann told STV News they now fear a reduction in footfall if people are put off by the extra cost.

“One of our biggest footfall is from the castle, we’re only about a three minute walk,” she said.

“We’re situated on the castle rock so they might just not come to Stirling at all and go to the other cities.”

But, she added, the levy could change the way Stirling is marketed to tourists.

Ms McCann said: “It would be good to see the money get reinvested into Stirling from a marketing point of view. Invest it into events, the infrastructure, the overall visitor experience in the city.

“There’s bigger cities that get a lot more promotion than we do here in Stirling. We want to make Stirling a destination and a place to visit, not just a place to pass through.”

The tax will be added onto the cost of nightly accommodation in hotels, bed and breakfasts and other indoor accommodation.

Accommodation providers in some parts fear they’ll loose business to neighbouring authorities where there are no extra charges added.

The Mar Huts in Drymen have been run by Gordon Campbell since 2019 and are a popular stop for people walking the West Highland Way.

Drymen is close to the council border with East Dunbartonshire – Mr Campbell says he’s worried people will choose to stay further away and travel further to avoid paying more.

“I think if I had a choice of 5-10 minutes down the road, it was a different council area and I wasn’t being charged the levy then I would make that choice as a customer,” Mr Campbell told STV News.

“My worry is, because it’s such a broad fund and we’re in a rural part of Stirlingshire, that actually that money won’t be spent in the areas it is generated from.

“My concern is, because we’re in the National Park, that’s not going to have the same impact.”

With the council area being one of the biggest in Scotland, there’s are fears the money raised by the tax will be unfairly distributed.

Stirling Council leader councillor Susan McGill said the new tax is an “opportunity to invest in and grow our tourism economy”.

She added: “Stirling’s scheme strikes a balance between raising vital funds to improve our tourism experience while minimising any short-term impacts on businesses.

“All the income generated by the levy will be spent on projects that will be beneficial to Stirling’s tourism industry and residents alike, with the aim of attracting more visitors to the region all-year round and restoring civic pride in our communities.

“These investments could include better public transport links across the region, more events and festivals, community projects such as heritage walks, new seating or planting beds,job creation schemes for businesses and tourism marketing campaigns.

“We have reached this decision following a comprehensive consultation and engagement process, with constructive feedback from businesses, the public and other key stakeholders. My thanks to everyone who took part in the surveys and attended the drop-in events – your input has shaped a scheme that meets the specific needs of Stirling.”