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Council / Island councils team up to study feasibility of visitor levy scheme

Photo: Shetland News

THE COUNCILS in Orkney, Shetland and the Western Isles are jointly seeking to commission a consultant to investigate the feasibility of a visitor levy scheme for each of the island’s authorities.

An invitation to tender to provide the contract is now live on the Public Contracts Scotland website.

Following an appointment, it is anticipated that work will get underway in January.

In September Orkney Islands Council committed to investigate the feasibility of a visitor levy scheme for Orkney – but it was also recognised that there could be potential savings through joint working with other island authorities.

A formal engagement process with local communities, tourism businesses and organisations and other stakeholders will take place over the winter months to understand potential impacts and help shape the design of a future scheme if progressed.

A cost-benefit analysis, measuring the benefits of a scheme versus the associated costs, will also be undertaken.

The findings of the feasibility investigations will then be presented to elected members to inform a decision on whether to follow other councils in introducing a visitor levy.

The contract, which has a value of up to a maximum of £60,000, states that equal time be allocated to work for each of the three island authorities.

In September the Visitor Levy (Scotland) Act 2024 came into force, giving new discretionary power to local authorities to introduce a visitor levy – or a “tourist tax” on people’s overnight stays.

The aim of this is to generate revenue to develop, support or sustain facilities and services which are substantially for, or used by, people visiting the scheme area for leisure or business purposes.

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