Tourist photographing at the Grassmarket, Edinburgh, Scotland.

Tourist tax legislation passes first stage

The Scottish Government has announced that new legislation to give councils additional powers to raise funding for tourism facilities has passed the first parliamentary vote.

Bringing councils in the country into line with many other tourist destinations in Europe, the general principles of the new Visitor Levy (Scotland) have been endorsed by Members of the Scottish Parliament. This will see councils able to apply a levy on overnight stays, with the money raised being reinvested in new facilities and services that are used by tourists. The aim of this is for services and facilities that are used regularly by tourists to be improved, with visitors and local economies seeing benefits.

A consultation was launched by the Scottish Government, with this bringing nationwide backing for the new proposals.

Public Finance Minister Tom Arthur said:

“I strongly believe that a visitor levy can be a force for good, offering councils the opportunity to use the proceeds to invest in their local economy, bringing benefits to residents and visitors alike.

“This Bill is about giving local government a new power, which they can use as appropriate. It fits with our ambition of fiscally empowering local government and strengthening local democracy, and the New Deal for Business and the New Deal for Local Government are at the heart of the Scottish Government’s approach to this measure.

“We have already taken on board the helpful input we have had from business, councils and others and I am committed to continuing that meaningful and constructive engagement as we move forward.”

PSE Static Quote Scotland tourism levy

If local authorities want to use these powers in the future, they would need to consult communities, businesses and organisations in the tourism industry on whether this should be done, as well as how the funding should be spent.

Supporting the proposals, an expert group has also been formed – made up of representatives from the tourism sector, COSLA, the Scottish Government and other partners – to ensure that the legislation can be implemented in the best possible way, should it be passed.

Councillor Katie Hagmann, Resources Spokesperson for COSLA, also commented:

“I am delighted to see the progression of the Visitor Levy Bill through Parliament. The introduction of visitor levy powers is a small but significant step towards maximising the revenue raising powers available to local government, enabling those closest to the community, your democratically elected councillors, the power to decide what works best for their local communities, and recognising the great diversity of needs across Scotland.

“The revenue raised by the levy has the potential to provide much-needed additional investment in our communities, in areas from the natural environment to cultural and leisure facilities, at a time when local government is facing significant strain on resources. Meanwhile, we are keen to ensure that this additional revenue stream helps us to maintain Scotland’s position as a world-leading tourist destination.

“We are fully committed to further joint work with the Scottish Government as the Bill continues its journey through Parliament, as well as continued engagement with colleagues across our important tourism industry.”

The next stage will see the legislation considered for line-by-line amendments by the Local Government, Housing and Planning Committee, with stage three bringing further amendment considerations by the Scottish Parliament.

 

Image credit: iStock

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