Argyll and Bute Council considering plan for £5 flat-rate tourist tax

Argyll and Bute Council could begin consulting on a revised proposal for a flat-rate visitor levy of £5 per room, per night, if councillors agree.

The authority paused the project twice before the Scottish Parliament passed the Visitor Levy (Amendment) (Scotland) Bill in March, which made a flat-rate option available to councils that choose to operate a visitor levy.

Council officials have now drafted a consultation on a revised scheme, which would see a flat rate of £5 per room per night.

If agreement is reached by councillors at a full meeting, the 12-week public consultation period could run from Monday, July 13, until Monday, October 5.

The details feature in a report which will go before the full council at its meeting on Wednesday, June 24.

Executive director Kirsty Flanagan said: “The visitor levy scheme outlined…is based on a fixed rate of £5 per room/area per night which is anticipated to generate a gross income of £10million, with an estimated £1.5 million to cover the costs of national and local exemptions, the net income of £8.5 million will reduce once consideration has been given to support to businesses with administration costs.

“The net income estimate is based on accommodation capacity data and tourism demand modelling using Scottish Tourism Economic Activity Monitor (STEAM) 2024 and VisitScotland data, taking seasonality and occupancy rates into account.

“The principle rationale for a proposed fixed rate Visitor Levy Scheme is that all tourists have the same opportunity to use facilities (regardless of accommodation type), but this can give rise to negative impacts for the host community and for tourists themselves.

“For example, the extra waste produced by tourists that needs to be dealt with, the erosion of footpaths and depreciation of other infrastructure.”

Ms Flanagan added: “The exact mechanism for billing and collecting the levy is still under discussion, including the development of a national platform through discussions with the Improvement Service.

“Argyll and Bute Council will ensure compliance, with penalties and debt recovery processes in place for non-compliance.

“Establishing a robust internal team for project management, enforcement, and data analysis will be necessary to support the implementation of a visitor levy scheme, if approved, and any supporting systems.”

The council also heard in April of local exemptions which could be made for healthcare visits by islanders to the mainland of Argyll and Bute, and for outdoor education centres with a focus on young people on residential trips.

Other exemptions at a national level are also detailed in an appendix to the report, including those who are using overnight accommodation as their only or primary residence, and those entitled to specific disability benefits.

The report and its appendices can be found on the council website.