Highland Business Groups Express Concerns Over Proposed Tourist Levy

Highland Council is currently conducting a consultation regarding the potential implementation of a 5% visitor levy, which it projects could generate a minimum of £10 million annually for the region. However, four chambers of commerce in the Highlands – specifically Cairngorm, Caithness, Lochaber, and Inverness – have voiced apprehension that this additional expense on holiday accommodation might discourage tourists from visiting the area. Highland Council, which has been contacted for a statement, previously indicated that funds collected from the levy could be allocated to enhancing infrastructure, including road improvements. The 12-week public consultation initiated by Highland Council commenced last month. The local authority has stated that the proposed levy might be implemented by September 2026. In May, Members of the Scottish Parliament (MSPs) endorsed a proposal enabling councils to apply a charge to overnight accommodation, encompassing hotels, bed and breakfasts, and holiday lets. Accommodation providers would bear the responsibility for collecting this levy from guests. The four Highland chambers, which represent associations of businesspeople, are advocating for a halt and review of the efforts to implement a Highland tourist tax. Their apprehension stems from concerns that it would impose an administrative burden on local businesses and potentially place the region at a competitive disadvantage. In a collaborative statement, the chambers declared: “We understand that change is needed for the tourism industry and are very happy to explore all options with relevant stakeholders. “We believe that a well-considered and carefully implemented approach to tourism development is crucial for the long-term success of the Highlands. “Therefore, we urge caution and a thorough review of the proposed visitor levy before any decisions are made.” According to data from Highland Council, the Highlands attract over six million visitors annually, a figure that includes day trippers, international tourists, and cruise passengers. The region boasts attractions such as the North Coast 500 tourist route, which begins and concludes in Inverness, the distinctive landscape of Skye, and beaches spanning its 3,050 miles (4,905 km) of coastline. Furthermore, the area encompasses portions of the Cairngorms National Park, recognized as the UK’s largest national park, and features the recently designated Unesco Flow Country World Heritage site in its northern reaches. Six years prior, councils including Highland, Edinburgh, and Aberdeen, among others, had expressed support for proposals concerning a tourist tax.