Highland tourist tax of £5 a night could raise £9.5m a year

Highland Council is to hold a public consultation on its plans for a £5 per room, per night visitor levy for stays in hotels, B&Bs and short-term lets.

The proposed charge for hostels and campsites would be £2 per night.

A meeting of the full council in Inverness heard that the local authority had been discussing a proposed tourist tax for seven years.

Councillors were told that if the fixed-rate visitor levy went ahead it could raise about £9.5m a year to help pay for infrastructure such as roads.

Under the plans, the charges would apply across the whole Highland Council area for nine months of the year, excluding December, January and February.

Accommodation providers would retain 5% of the levy collected to help cover administration costs.

Research suggests the Highlands has almost 9.4 million annual visitors.

Council leader and SNP councillor, Raymond Bremner, said the local authority had been "labouring" at trying to introduce a charge for "a long time".

He said "most people" in the Highlands supported the idea of a levy, and he put forward a motion backing a public consultation.

Scottish Green Party councillor Chris Ballance said the charges could generate much-needed money for social housing, but he had concerns the levy would hit lower income families visiting the Highlands more than those able to afford luxury accommodation.

Liberal Democrat councillors tabled an amendment requesting that it be made clear that Highland residents would not pay the fees if visiting another part of the region.

They said residents should not be expected to pay an additional "tax", and it would also avoid a situation where people travelling for hospital appointments in Inverness having to claim expenses from NHS Highland.

Scottish Conservative councillors put forward an amendment calling for a decision on the consultation to be delayed until the results of an economic assessment were known in the coming weeks.

They said the assessment could show a negative impact on tourist visits and a potential legal challenge from tourism businesses.

Both amendments failed to get enough support and the motion was voted through.

Raymond Bremner said the council would encourage as wide a consultation as possible.

Before the meeting, the Highland Hotel Association (HHA) said £5 was too high and suggested a lower rate of £3.

HHA said its data suggested summer occupancy rates across the region have dropped by 10% compared to last year, while costs for the sector continue to rise.

HHA chairman Craig Ewan said: "Our message to Highland Council is clear: it is not 'no' to a visitor levy, but 'not now'.

"The industry is battling a perfect storm of soaring operating costs and weakening demand."

Edinburgh was the first city in Scotland to introduce a tourist tax earlier this summer.

People staying overnight in hotels, bed and breakfasts and self-catering accommodation are charged an additional 5% on top of their original booking.

It is expected to raise about £50m annually, which could be used to fund new housing, cultural initiatives and a wider police presence.

A similar 5% levy is due to come into force in Glasgow from January 2027, while in Aberdeen a 7% charge will be introduced in April 2027 at the earliest.

The Scottish Borders, Dumfries and Galloway, Orkney and Shetland have rejected proposals for a visitor levy.