Highland Council tourist tax proposal could raise £11m for staycation hotspots

Highland Council in Scotland has put forward a proposal to introduce a tourist tax that could potentially raise up to £11 million annually to benefit local staycation destinations. This move comes after Scottish Parliament Members passed a legislation allowing such taxes across the country earlier in the year. If approved, the proposed 5% visitor levy would apply to overnight stays in hotels, B&Bs, and holiday lets, with an expected implementation period of 18 months leading up to its official enforcement in September 2026.

Every year, around six million visitors flock to the Highlands, including day-trippers, tourists, and cruise passengers, to explore iconic sites such as the North Coast 500, the Isle of Skye, and Cairngorms National Park. The potential revenue generated from this tax could significantly impact local communities and tourism infrastructure in the region. For instance, the Ledmore Lodge Estate, located on the North Coast 500 route, boasts a traditional lodge, cottage, bothy, and vast acres of land that could benefit from such investments.

Highland Council members are scheduled to vote on whether to proceed with a 12-week public consultation on the proposed policy. Ken Gowans, chairman of the Economy and Infrastructure Committee, highlighted that the consultation would seek input on the levy’s rate and how the generated funds should be utilised. He emphasised the importance of using the tax revenue to enhance local infrastructure, including repairing roads, upgrading car parks, footpaths, and public amenities. Based on estimates from VisitScotland, the tourist tax could potentially yield between £10 million to £11 million annually.

Frazer Coupland, the chief executive of Lochaber Chamber of Commerce, expressed excitement over the opportunity to reinvest millions of pounds back into local communities. However, he stressed the need for a fair distribution of these funds to address the diverse needs of various areas within the expansive Highland region. Coupland also highlighted concerns regarding ensuring that residents requiring overnight accommodation for purposes such as hospital visits are not unduly burdened by the tax.

Highland Council’s alignment with other local authorities like Aberdeen and Edinburgh, who previously endorsed similar tourist tax initiatives, indicates a coordinated effort towards sustainable tourism development and revenue generation. Under the new legislation, accommodation providers would be responsible for collecting the levy in council areas where the tax is implemented, with the generated funds earmarked for projects and services benefiting tourists and visitors directly.

In conclusion, the Highland Council’s tourist tax proposal represents a significant opportunity to boost local economies, enhance infrastructure, and promote sustainable tourism in the region. By engaging in a transparent consultation process and prioritising equitable fund distribution, the Council aims to harness the potential of this tax to support the diverse needs of Highland communities and ensure a positive impact on both residents and visitors alike.