Council / Self-caterers association calls for tourist tax plans to be paused
THE MAIN trade association for Scotland’s self-catering industry has called for a possible tourist tax in Shetland, Orkney and the Western Isles to be paused.
The Association of Scotland’s Self-Caterers (ASSC) has urged the rest of the tourism sector to respond to a joint consultation on the potential visitor levy before the deadline on Friday 11 April.
The ASSC has responded itself and recommended the three island councils “pause their current plans until the Scottish Government completes a review” and amends its visitor levy legislation.
The association is also encouraging the Scottish Government to adopt a flat fee banded model rather than a percentage rate.
Earlier this year the councils in Shetland, Orkney and the Western Isles appointed a consultant to investigate the feasibility of a visitor levy scheme for each of the three areas.
The Visitor Levy (Scotland) Act 2024 came into force in September, 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 was the first council area to announce a tourist tax, with a five per cent levy set to commence in 2026.
Shetland Islands Council has not yet decided whether a visitor levy will be introduced locally. However, if a scheme were progressed, it would be unlikely to be in force before 2027.
Under the proposals accommodation providers would be responsible for collecting the levy from visitors and paying it to the council.
The visitor levy does not include cruise calls and motorhomes but the Scottish Government is open to exploring these two avenues.
ASSC chief executive Fiona Campbell said: “This is a pivotal moment and we urge all those with a stake in Scottish tourism, especially our important self-catering community, to respond to this joint islands consultation without delay.
“Whether you are a local business, a Scottish resident who holidays in your own country, or someone who works away from home and relies on short-term accommodation – your voice matters.
“Tourism is not just for tourists – it’s for families, workers, and residents. The outcomes of this will shape how, and whether, tourism can continue to thrive in our island communities.”
Consultants Urban Foresight held a two-hour workshop in Shetland last week with figures from the tourism industry about the potential tourist tax.
It said the public session allowed people to “discuss concerns and opportunities for any such scheme from tourism-related businesses and anyone who may be impacted by a visitor levy.”
Development committee chairman Dennis Leask said last month the levy could “boost the visitor experience for tourists to Shetland and benefit local communities”.
“However, we need to better understand the potential risks to the tourist economy and any impacts of a visitor levy, before we consider introducing it in Shetland,” he added.
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