What is a visitor levy?
A visitor levy is a charge paid by people using paid accommodation. Revenue from the levy has to be invested locally on facilities and services that are for, or used by, tourists and visitors.
The revenue raised from a visitor levy would allow us to make investments in infrastructure and services used by tourists and visitors, enhancing our existing tourism offer and helping to boost our local economy by attracting more visitors. With growing demands for critical services to protect health and social care, support pupils with additional support needs, and tackle poverty, we have a duty to look at any opportunities for additional sources of income which can be invested to support growing our visitor economy. This would allow core funding to be focused on the services which are needed by the most vulnerable people in our communities.
The Visitor Levy (Scotland) Act (May 2025) allowed local authorities to introduce a discretionary levy on overnight accommodation, with decisions on whether to implement it, the rate, and how revenue is used made locally.
The new Visitor Levy (Scotland) Amendment Act (March 2026) provides additional flexibility, allowing councils to apply a fixed amount per room/area per night or a variable fixed amount per room/area per night (as alternatives to a percentage-based levy).
The Amendment Act is expected to come into force in July 2026, enabling councils to set fixed monetary charges. View the Visitor Levy (Amendment) (Scotland) Bill | Scottish Parliament website.
What type of visitor levy scheme is Perth and Kinross Council proposing?
We are proposing introducing a fixed-rate scheme.
In February 2025, following the launch of the Perth and Kinross Tourism Strategy and Action Plan 2025 to 2030, our Economy and Infrastructure Committee agreed to commence a period of early-stage engagement on a visitor levy. The purpose of this engagement was to explore whether, and how, a visitor levy could be implemented in the Perth and Kinross area.
An extensive early-stage engagement process was carried out, including an online survey, in-person drop-in sessions, and one-to-one meetings with accommodation providers.
The findings from this early‑stage engagement have been used to inform:
- whether a visitor levy should be introduced in Perth and Kinross
- which visitors, or types of accommodation, would be subject to the levy
- the priority areas which revenues raised by the levy could be directed to
Why are you proposing a fixed-rate scheme, and not a percentage-rate scheme?
During the early-stage engagement, we consulted on the existing visitor levy legislation at that time. During that consultation, whilst we did not specifically survey respondents on a fixed-rate scheme, this was raised by industry strongly as the preferred model.
National tourism bodies such as the Scottish Tourism Alliance and Association of Scotland's Self-Caterers lobbied on behalf of industry for an amendment to the Visitor Levy (Scotland) Act. This was to give local authorities additional powers to introduce either a fixed-rate scheme or a fixed-rate tiered scheme. The industry supports a fixed-rate scheme and fixed-rate tiered scheme.
Also, for accommodation providers, a fixed rate was considered as less of an administrative burden.
View further information on the Scottish Tourism Alliance's Policy Activity webpage.
Why can't the levy be applied per person, per night, which is the model used primarily in Europe?
This is not an option that is available to us under the legislation.
What is the anticipated revenue per year from a fixed-rate scheme? How does this compare to a percentage-rate scheme?
2.01 million is the average number of total nights spent in local accommodation by international and domestic visitors between 2022 and 2024, according to VisitScotland statistics.
| Suggested fixed levy rate | Number of nights | Estimated total revenue generated (2024) |
|---|---|---|
| £3.00 | 2.01 million | £6.03 million |
| £4.00 | 2.01 million | £8.04 million |
| £5.00 | 2.01 million | £10.05 million |
Caveats apply to these figures in that this may be an estimated value based on all visitors. Deductions of exclusions by protected groups, varying party sizes, and the application of caps for duration of stay (note: most overnight stays are less than three nights) have not been applied.
For comparability, based on a percentage scheme, it is estimated that:
- a 1% visitor levy in Perth and Kinross could generate around £1.6 million to 1.8 million per year
- a 3% levy could generate between £4.9 million and £5.6 million per year
- a 5% levy could generate between £8.2 million to £9.3 million per year
- a 7% levy could generate between £11.5 million to £13 million per year
What type of paid accommodation does a visitor levy apply to?
The types of accommodation which are in scope include:
- hotels
- self-catering apartments
- aparthotels
- bed and breakfasts
- guest houses
- hostels
- student lets - only when let to visitors and non-Perth and Kinross students
- vehicles or boats (vessels) which mostly stay in one place
- holiday/short-term lets including residential properties with licenses for:
- home sharing
- home letting
- secondary homes
- caravan/campsites
Why are exempted individuals having to pay up front?
We propose that individuals pay the levy at the point of booking and then claim the money back via the national visitorlevy.scot portal.
The main reasons for payment at the point of booking are due to the administrative burden it would place on an accommodation provider.
For that reason, we propose paying, then claiming is the best practice approach.
Why are those with a medical exemption not exempt?
Local authorities can choose to introduce a discretionary exemption if they wish.
Local authorities may want to consider whether to establish an exemption for individuals visiting the area for NHS medical treatment. This is where an individual is not travelling for voluntary recreational purposes and is required to stay in overnight accommodation (before or after treatment due to distances between their normal residence and the hospital/medical facility).
We propose to exempt residents of Perth and Kinross boundary area. Individuals who may be travelling within the local boundary for a medical reason requiring an overnight stay will fall under the resident exemption.
How will revenues raised be spent and/or allocated?
The Visitor Levy (Scotland) Act requires that income raised through a visitor levy is reinvested locally in facilities and services which are used by, or for the benefit of, leisure and business visitors.
In developing the scheme, we have aligned proposed investment priorities with the Perth and Kinross Tourism Strategy and Action Plan 2025 to 2030. Any money raised from a potential visitor levy scheme would be ring-fenced to invest in local facilities and services that are used by visitors. It could be reinvested in the following key areas:
- facilities, infrastructure and services that are used by leisure and business visitors
- area promotion and marketing
- development of new tourism products
- attracting events and festivals
- improvements that enhance the overall visitor experience
Since residents and visitors use many of the same facilities, the visitor levy also has the potential to also benefit Perth and Kinross residents.
The Act does not stipulate that revenue generated by a visitor levy should be used within a certain time. Local authorities may choose to carry funds forward between years, or place funds in reserve.
How will the money raised be shared out, and will it be in the areas the money is raised in?
The revenues raised will be spent across the whole of the Perth and Kinross area for the benefit of all localities, not in the areas they are raised in.
How will decisions be made on how revenues raised are allocated?
Decisions on the allocation of visitor levy funds will be made by a Visitor Levy Forum, with final decisions delegated to the appropriate Council or Committee in accordance with governance arrangements.
The Visitor Levy Forum will be made up of representatives from industry, businesses and communities to provide advice to the Council relating to the visitor levy.
The forum will be established to discuss and advise on the visitor levy scheme, including any review of the scheme and any proposed amendments to the scheme. The forum will be consulted on how the visitor levy funds will be spent.
How will revenues raised be collected?
If a visitor levy is introduced, then revenues will be collected via the national visitorlevy.scot platform.
This is the national digital service being developed to help accommodation providers meet their responsibilities where a local visitor levy has been introduced. It provides a consistent, secure way to register, submit returns and make payments in areas where a council has approved a scheme.
How will Perth and Kinross Council enforce the levy?
The Act provides for a complex range of penalties to be applied to accommodation providers who do not comply with their responsibilities to either collect and or pay a visitor levy.
The visitor levy guidance emphasises that penalties must be proportionate and transparent to provide certainty for businesses who will be responsible for collecting from visitors.
Our approach will be to support accommodation providers, explain the regulations, and to set out a penalty framework. Using enforcement will be a last resort.
Further questions and support
Do you have some questions about or need further support with regards to the visitor levy?
Please contact [email protected].
