The Highland Council welcomes moves by the Scottish Government to introduce greater flexibility on how it could design a Visitor Levy Scheme for consultation.
The Visitor Levy (Scotland) Act 2024 currently provides local authorities with discretionary powers to implement percentage-based levies following statutory consultation.
The Highland Council consulted on a potential 5% levy, which would generate £10 million each year to sustain, support or develop services and facilities substantially used by visitors. The Council received 4,103 responses to its statutory consultation on the proposed Visitor Levy Scheme and also received feedback from drop-in sessions, online and in-person events.
In response to the considerable concerns shared by accommodation providers, Highland's Visitor Levy Reference Group, and others regarding a percentage-based levy, the Council pressed the Scottish Government to amend legislation to provide councils with discretionary powers to consider either a percentage based or flat rate levy.
While the tourism sector was broadly supportive of a Visitor Levy Scheme, deep concerns were raised about the complexities inherent with a percentage-based levy. Feedback indicated a preference for a flat rate, or tiered flat rate, which would better meet the needs of the local visitor economy and Highland communities.
Earlier this week the Scottish Government confirmed plans to introduce legislation in early 2026 to give councils discretionary powers to levy a fixed amount, or a range of fixed amounts based on factors such as time of year or types of accommodation. The Bill would still enable local authorities to implement a percentage-based levy, and would also seek to provide clarity on third party sales and levy returns based on occupancy to simplify the administration for accommodation providers.
The Scottish Government said the decision to introduce the new Bill, which builds on the framework established in the Visitor Levy (Scotland) Act 2024, had been informed by engagement with councils, tourism businesses and industry bodies.
Highland Council Convener, Cllr Bill Lobban said: "Having listened very carefully to the strength of feedback received from our accommodation providers and others, we pressed the Scottish Government for this change. This flexibility means we can consider a Visitor Levy Scheme which could work for Highland - one that could support accommodation providers and local businesses, and potentially provide multi-million pound spend in our region to support, sustain and develop infrastructure and services primarily used by visitors. I would like to take this opportunity to thank everyone who contributed to our consultation."
The report being considered at the meeting of The Highland Council on 11 December 2025, recommends to await the intended new primary legislation for either a single fixed amount or a range of fixed amounts for different purposes or areas, and thereafter for a report to be brought forward to a future meeting of The Highland Council to decide the way forward for Highland.
The latest available data from the Scottish Tourism Economic Activity Monitor in Scotland (STEAM) shows that between 2012 and 2023, visitor numbers to the Highlands increased from 5.16 million to 8.375 million - an increase of 62.5%, and direct expenditure grew from £1.118 billion to £1.68 billion over the same period.
Visitor levy schemes have been approved in Edinburgh, Glasgow, Aberdeen and West Dunbartonshire to date, with 7 other local authorities in active stages of statutory consultation or undertaking early public engagement activities. In addition, 7 other local authorities have decided to pause or are not actively pursuing a Visitor Levy for their areas.