Last reviewed 27 November 2024

Recent News

25 November 2024 | Wales – The Welsh Government has introduced draft legislation to the Senedd for local authorities to implement a visitor levy should they choose to, as well as establish a national register of visitor accommodation. Further information in Wales section below.

18 November 2024 | Highland Council has launched a public consultation on their proposed levy on accommodation stays that would start from autumn 2026. Closing date for consultation is 7 February 2025.

23 September 2024 | Edinburgh City Council has launched a public consultation on their proposed levy on accommodation stays expected to begin from (or around) 24 July 2026. Closing date for consultation is 15 December 2024.

Selected destination(s) that have implemented a levy affecting visitors staying overnight in commercial accommodation:

Manchester – £1 per room, per night (excluding VAT) applicable to visitors staying in accommodation establishments with a ratable value of at least £75,000. Known as the ‘City Visitor Charge’ 78 properties (mainly within the A57 (M) ring road) currently meet this criteria.

The Welsh Government has introduced draft legislation called the ‘Visitor Accommodation (Register and Levy) Etc. (Wales) Bill’ to the Senedd (Welsh Parliament) in November 2025, to allow local authorities in Wales the discretion to implement a visitor levy should they choose to. This follows a public consultation on establishing a potential visitor levy in 2022 (background information).

If the Bill is passed (final vote anticipated to be in summer 2025), the earliest a visitor levy could be introduced by any local authority is in 2027.

The levy would be payable by visitors staying overnight in commercial accommodation. Where a local authority decides to implement, the initial proposed amount set nationally would be:

• £0.75 per person per night (excluding VAT) for those staying at campsites (pitches) and hostels.
• £1.25 per person per night (excluding VAT) for those staying in all other visitor accommodation types.

However, the Bill proposes to allow a local authority to add a ‘premium’ to the national flat rate. This can be any amount, but national government may by regulation set a cap.

Further information on the Visitor Levy

Visitor Levy (accommodation)

The Visitor Levy (Scotland) Act was passed by the Scottish Parliament in May 2024 and commenced in September 2024. The legislation allows local authorities (councils) in Scotland the discretion to implement a visitor levy on stays in ‘overnight accommodation’ if they choose to. Local authorities deciding to implement must consult locally and an 18 month implementation period is required before introduction. As a result, the earliest a visitor will pay the levy will be in mid-2026.

Originally intended to be introduced in 2020 following public consultation, the Visitor Levy Bill was introduced in May 2023 by the Scottish Government for debate in the Scottish Parliament. ETOA provided evidence to the Local Government, Housing and Parliament committee on our research of tourism taxes in Europe during Stage 1 of the legislative process. Further information on the Bill (as introduced/amendments) can be found here.

Key points on the Visitor Levy

• The levy amount is to be calculated as a percentage rate of room cost (excluding VAT). The percentage rate must be the same across different types of accommodation (e.g. hotels and short-term lets). However, different percentage rates can be set for different areas within the local authority’s area.
• The calculated levy amount is subject to VAT (20%) when staying in VAT registered properties.
• Transitional provision – the levy is applicable for a stay after the introduction date if contracted before the start date but after a Council has formally announced its intention to introduce a Visitor Levy scheme (i.e. after public consultation).
• National exemption applies for a disabled person receiving certain UK disability benefits (para 13.1(ga))
• Local authorities can decide to introduce a cap on the number of nights stayed after which the levy is not applicable. Edinburgh is proposing to cap the payment of the levy to the first 7 consecutive nights.

Further information:

Presentation from Scottish Government at ETOA event in Edinburgh on 20 September 2024.

Guidance for local authorities published by Visit Scotland (includes information on which local authorities are discussing implementation)

Edinburgh

Proposed (new) – 5% net room rate (year round applicable to whole Council area – max 7 consecutive nights)

In January 2025, the scheme including rate will be finalised after public consultation (closes on 15 December 2024). Following an 18 month implementation period, the Visitor Levy is anticipated to be introduced from (or around) 24 July 2026. Summary of the proposed spending plans for the tax revenue can be seen here (more information on pages 36-40).

It is proposed that accommodation providers will be permitted to retain 1.5%-2.5% of the levy they collect, depending on the size of the business, in recognition of the collection administration cost.

Once introduced, the Visitor Levy scheme will be reviewed by the City Council every 3 years and it is proposed any significant changes to the scheme (such as increasing the percentage rate, extending the area applicable) will be conditional on an 18 month implementation period (in effect 2 years due to consultation period required beforehand). Other changes (such as reducing the percentage rate, adding an exemption) will not require an 18 month notice period only the requirement to consult. Therefore, these changes could be implemented within 6 months.

Further information:

Presentation from Edinburgh City Council at ETOA event in Edinburgh on 20 September 2024.

Overview of Edinburgh Visitor Levy Draft Scheme published by Edinburgh City Council

Highland

Proposed – 5% net room rate (year round applicable to whole Council area)

In Spring 2025, the scheme including rate will be decided after public consultation (closes on 7 February). Following an 18 month implementation period, the Visitor Levy is anticipated to be introduced in autumn 2026.

Scotland Cruise Ship levy

The Scottish Government are expected to launch a public consultation by end of 2024 on whether to permit a potential cruise ship levy, which may be similar to the Visitor Levy framework applicable to ‘overnight accommodation’. Further information on the consultation will be published on this page when announced.

While best efforts have been made to verify the accuracy of the information, the information displayed should be used as guidance only.