Council / Island councils appoint consultant for visitor levy feasibility study
THE COUNCILS in Shetland, Orkney and the Western Isles have appointed a consultant to investigate the feasibility of a visitor levy scheme for each of the three areas.
The contract has gone to Urban Foresight, with their team of local consultants set to begin the work imminently.
Orkney Islands Council leader Heather Woodbridge said: “We are pleased to have appointed Urban Foresight to investigate the feasibility of a visitor levy scheme for each of the island’s authorities, selected from a very high standard of applications made through the tender process.
“It is anticipated that work will be underway as soon as possible and the findings will be presented to councillors in due course.”
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 area for leisure or business purposes.
Edinburgh is the first council area to announce a tourist tax, with a five per cent levy set to commence in 2026.
Some businesses have expressed concern that it could result in some visitors deciding against coming to Edinburgh.
But the city’s council has hailed the potential funding boost it could bring, with estimates suggesting it could be worth an additional £50 million a year.
There has been a mixed reaction locally to the idea of a visitor levy in Shetland, with some saying it already costs enough for visitors to travel to the isles.
Last year Orkney Islands Council committed to investigate the feasibility of a visitor levy scheme.
However, 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 to understand potential impacts and help shape the design of a future scheme if progressed.
Details will be publicised as soon as the consultation programme has been finalised.
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 councillors to inform a decision on whether to follow other local authorities in introducing a visitor levy.
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