What is a Visitor Levy?
The Visitor Levy (Scotland) Act 2024 came into effect in May 2024. This was followed by a Visitor Levy (Amendment) (Scotland) Act 2026 in May 2026 which amends the 2024 Act. This legislation allows a charge to be introduced on overnight stays in hotels and other short-term accommodations, to raise funds to support and sustain local services and infrastructure for the visitor economy and residents. It would be paid by most people using hotels and other short term accommodation.
Why consider a visitor levy for Argyll and Bute?
Because the visitor economy is a key industry for Argyll and Bute. Visitors expect and use many public services that are used also by residents.
With growing tourism pressures demonstrated by an increase of 58.9% of overnight visitors accessing paid accommodation between 2013 to 2024 and challenging public sector budgets we need to investigate options that could help raise income locally, to sustain public services needed and affected by the visitor economy, and its longer term future across Argyll and Bute.
What could a levy be spent on?
Visitor levy income must be used to fund services and support for the visitor economy. As many visitor services are used also by residents, this could benefit visitors and residents.
Services used by visitors include for example electric vehicle charge points, harbours, piers, public toilets, roads and car parks, walking paths, motorhomes waste disposal points and recycling centres.
Consultation questions include asking what you would like income spent on.
Examples of how income from a Visitor Levy could be used include but are not limited to support for individual tourism businesses to develop their services; improvements to local infrastructure that benefits tourists; creating culture and heritage opportunities, including events; and developing connectivity to make it easier to travel between islands and destinations.
Did you know - if a visitor levy was introduced, a Visitor Levy Forum involving community and business reps would be set up as part of the process to agree on what levy income was spent on
How much would a levy be and who would pay it?
There are questions in the consultation about how much a levy should be, if introduced; and what you would like to see the investment spent on.
Estimates indicate that a potential £5 flat rate visitor levy could raise a gross amount of £10 million for the visitor economy, with an estimated £1.5 million to cover the costs of national and local exemptions. The net income of £8.5 million would reduce after consideration given to support provided to businesses with administration costs.
Most people paying to stay for an overnight visit to Argyll and Bute would pay the levy. National exemptions from paying it are noted in the Act. Proposed local exemptions are included for comment in the draft Visitor Levy Scheme.
The earliest a visitor levy could be introduced in Argyll and Bute Council is mid to late 2028.
More information
You can find more information on this website including legislation, report and documents - National legislation, reports, draft scheme and impact assessments
