Friday, June 20, 2025

In a historic breakthrough, Glasgow City Council gave approval to implementing a visitor levy to be in place by January 2027. Coming hot on the heels of Edinburgh, who already rolled out a similar 5% tourist tax earlier this year, Glasgow’s levy will also be charged on accommodation expenses that add up to about £4.83 per night. The project is set to rake in about £15.9 million to £16.1 million annually, and revenues are to be used to fund priority projects such as infrastructure development, cultural projects, environmental sustainability projects, and tourism marketing to boost Glasgow’s reputation as a leading visitor destination.

The introduction of a 5% visitor levy on accommodation is part of Glasgow’s broader strategy to enhance its tourism infrastructure and promote sustainable growth. The levy will be applied to both hotel stays and short-term rental accommodation, ensuring that visitors contribute to the upkeep and development of the city.

Glasgow joins Edinburgh, which became the first city in Scotland to implement such a tax, in an effort to reinvest revenue from tourism into vital city development and tourism initiatives.

The funds generated from the levy will be used to improve the city’s infrastructure, fund cultural programs, and contribute to sustainability projects, all aimed at enhancing the visitor experience and ensuring the city remains a competitive tourism destination. Additionally, part of the revenue will be allocated to tourism marketing, which will help Glasgow attract even more visitors in the coming years.

To offset the administrative costs of implementing the levy, a 1.5% administrative retention fee will be applied to hoteliers. This is designed to help accommodation providers manage the administrative burden that comes with the new tax.

Hoteliers and other accommodation providers will be required to collect and remit the levy on behalf of the city. Organisations that fail to comply with the new regulations will face penalties.

To ensure the levy is managed effectively and that it aligns with the needs of the tourism sector, a visitor levy forum will be established. This forum will provide the council with ongoing advice and will include representatives from the tourism industry as well as local communities.

This collaborative approach aims to address concerns and ensure the levy is implemented in a way that benefits both the city and its tourism industry.

While Glasgow has moved forward with the implementation of the visitor levy, the rollout of similar taxes across Scotland remains uneven. Edinburgh, which set a precedent earlier this year, is already seeing the benefits of its 5% levy, with revenues being directed into city development projects and tourism initiatives. The success of Edinburgh’s levy has prompted other Scottish cities to consider implementing similar taxes.

However, in other parts of Scotland, the adoption of a visitor levy has faced more resistance. In the Western Isles, plans to introduce a visitor levy are currently on hold. A cost-benefit analysis suggested that the levy would yield only marginal gains while potentially having negative effects on the island economy.

As a result, a port- or airport-based levy is being explored as an alternative. Similarly, in Orkney and Shetland, plans for visitor levies have been paused, with local authorities citing concerns about feasibility and potential negative economic impacts.

In South Ayrshire, the proposal to introduce a visitor levy has been abandoned for now, following a consultation where 79% of respondents opposed the idea. The plan will remain suspended until at least August 2027, reflecting the cautious approach that some councils are taking toward visitor levies.

Opinions on the visitor levy are divided within Scotland’s hospitality sector. Proponents argue that the levy provides a necessary mechanism for reinvesting tourism revenue into infrastructure, which benefits both visitors and local communities.

The funds raised could be used to improve transportation systems, develop new attractions, and maintain the city’s tourism infrastructure, ensuring that it remains attractive to tourists in the long term.

However, critics, including the Federation of Small Businesses and the Association of Scotland’s Self-Caterers, have raised concerns about the administrative burden that the visitor levy will impose on small businesses.

They argue that the tax could increase operational costs for accommodation providers and may harm rural economies, particularly in areas where tourism is a major economic driver.

While others like Aberdeen, Inverness, and Dundee are already closely monitoring, Glasgow’s roll-out of the levy might be used as a test case to see if levies for visitors are to be a regular feature of Scottish tourism policy or are reserved for select urban hotspots.

A visitor levy for Glasgow can be a precedent for other cities, especially with councils across Scotland having authority to make such levies with new national legislation.

Since opinions are divided, there is some doubt that the visitor levy will be a part of Scotland’s tourism sector development in the future that will include a sustainable income stream for city regeneration and tourism projects.

Source: Dram Scotland