The introduction of a visitor levy, commonly known as a “tourist tax,” in Aberdeen has taken a significant step forward as the city council’s Finance and Resources Committee approved the development of the proposal. This levy is intended to generate additional funds to support and enhance the local tourism sector, a key element of the city’s economy.
The approval signals the start of a consultation process with key stakeholders, particularly those in the hospitality industry, to shape a scheme that aligns with the needs of both the local community and visitors. The outcomes of these discussions are expected to be presented in the autumn of 2024, which could lead to a wider public consultation and eventual implementation.
The city council is capitalising on the powers granted by the recently enacted Visitor Levy (Scotland) Act 2024, which enables local authorities across Scotland to impose a charge on overnight stays in certain types of accommodation. The legislation is designed to empower councils to invest in local tourism-related facilities and services, thereby benefiting both visitors and residents.
Pathway to Stakeholder Engagement
The committee’s approval is the first step towards engaging with stakeholders, including representatives from the hotel industry, to ensure the levy is developed with their input and addresses their concerns. The consultation process will play a critical role in shaping the final proposal, which will be subject to further review and potential public input later in 2024.
A council representative expressed optimism about the opportunities provided by the new legislation, noting that it offers a chance to gather valuable feedback from those who will be most affected by the levy. The representative also pointed out that similar levies have been successfully implemented in several European cities, and Aberdeen could benefit from following suit. The primary consideration, according to the council, would be how the additional revenue could be allocated to improve the city’s cultural and tourism offerings.
Industry Perspective and Expectations
The hotel industry, which will be directly involved in collecting the levy, has shown a keen interest in understanding how the funds will be managed and utilised. A spokesperson from the local hotel association emphasised that the levy should be viewed as a broader initiative to support the entire visitor economy, including both corporate and leisure travellers.
The industry is particularly interested in how the council plans to implement the levy in line with the guidance provided by national tourism authorities. There is a strong desire for transparency and a clear financial model that outlines how the ring-fenced funds will be invested to benefit the local tourism sector. The spokesperson highlighted the importance of ensuring that the levy is not perceived merely as a tax on tourists but as a tool to enhance the overall visitor experience in Aberdeen.
Structure and Application of the Levy
Under the Visitor Levy (Scotland) Act 2024, local authorities have significant flexibility in how they implement the levy. The charge, which would be calculated as a percentage of the accommodation cost after deducting any commission, is expected to apply to a wide range of accommodation types. These include hotels, bed and breakfasts, hostels, guest houses, self-catering accommodations, camping sites, and caravan parks, among others.
The legislation allows councils to set different rates depending on the purpose or location within their jurisdiction. This means that events such as arts festivals or major conferences could have tailored levy rates that reflect their impact on local infrastructure and services. However, certain types of accommodation, such as cruise ships and motor homes, are exempt from the levy. Additionally, the act includes provisions to exempt individuals who receive disability-related benefits or allowances from paying the levy.
The primary goal of the levy is to ensure that the funds generated are reinvested into the local tourism sector, with a focus on enhancing public amenities, maintaining cultural sites, and supporting marketing efforts to attract more visitors to Aberdeen. By improving the city’s infrastructure and services, the levy is expected to create a more attractive and sustainable destination for tourists.
Next Steps and Future Implications
The recent approval by Aberdeen City Council represents a significant milestone in the process of introducing a visitor levy. The upcoming consultation with stakeholders will be crucial in ensuring that the levy is fair, effective, and beneficial to all parties involved. The feedback gathered during this process will shape the final proposal, which could see the levy introduced as early as next year.
As Aberdeen prepares to join other cities that have successfully implemented similar levies, the focus will be on balancing the interests of the tourism industry with the broader objectives of economic development and cultural enrichment. The additional revenue generated by the levy could play a key role in funding projects that enhance the city’s appeal as a tourist destination.
In the coming months, Aberdeen City Council will engage closely with stakeholders and the public to refine the proposal and ensure that it meets the needs of the local community while supporting the city’s tourism ambitions. If the levy is introduced, it could mark a new chapter in Aberdeen’s efforts to attract visitors and stimulate economic growth. The final decision, expected in late 2024, will determine the future direction of Aberdeen’s tourism strategy and its potential impact on the city’s economy and residents.
