Argyll and Bute become latest council to pause visitor levy plans after warnings

Argyll and Bute Council has halted plans for a proposed visitor levy following a public consultation.

Councillors voted against progressing with the levy at this stage, following warnings from the Federation of Small Businesses (FSB) that a local charge could deter visitors and harm the local economy.

The council previously said the levy would help fund investment in public services at a time when budgets are stretched.

However, they now join Shetland, Orkney, Comhairle nan Eilean Siar (Western Isles), and South Ayrshire in pausing development of visitor levy proposals.

Those in the tourism industry within the area previously told STV News that they felt it was a “burden they and their guests cannot afford”.

A public consultation carried out by the council revealed limited support for the proposed changes, with just one in five respondents in favour and strong opposition from local businesses.

The process would have seen a 5% levy applied to each room booked each night, meaning a £100 stay would cost £105, making a five-night stay an extra £25 per room.

Anyone booking overnight accommodation, including people who live in Argyll and Bute or travelling for work, would be required to pay the tax.

Hisashi Kuboyama, FSB’s west Scotland development manager, said: “We are pleased Argyll and Bute has listened to the concerns of local businesses and decided against pressing ahead with a local Visitor Levy.

“There is no ‘one-size-fits-all’ when it comes to the Visitor Levy, so it is vital that councils carry out a specific assessment of the potential impact in their own area as Argyll and Bute did, and listen and respond to any concerns of local businesses.”

FSB has also highlighted the potential administrative burden for small accommodation providers, such as B&Bs and guesthouses.

It has also highlighted a recent impact assessment commissioned by the Welsh Government, which found a visitor levy could reduce tourist numbers by up to 2.5% and cut visitor spending by as much as £35m a year.

Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers, said: “Argyll and Bute Council’s decision to pause work on introducing a tourist tax is an evidence-based and considered approach, demonstrating the Council was genuinely listening to those most impacted by their proposals. They can now properly evaluate the implications of a levy and ensure any future approach is aligned with both local priorities and national policy direction. Crucially, this pause also creates space for other charging models to emerge as part of the Scottish Government’s commitment to consider such methodologies.

“The Council joins a growing number of local authorities taking time to reassess their plans in light of ongoing stakeholder discussions and potential Scottish Government changes. We would encourage others to follow this sensible lead. Indeed, there’s already a growing momentum as Shetland, Orkney, Western Isles and South Ayrshire have already done so, showing the current percentage-only charging policy lies in tatters, showing the need for a bold and fundamental rethink.

“We are wholly supportive of Ministerial efforts to bring about a workable and fair system and expect that more councils will take similarly pragmatic steps in the weeks ahead. We desperately want to make this policy work – ensuring it doesn’t undermine the very sector it seeks to support – making Scotland a world-leader in sustainable tourism. To do this will require a radical overhaul to make it fit for purpose given the swelling opposition from councils and businesses throughout Scotland.”