Visitor Levy Scheme - Early Engagement and Future Timescale
Perth and Kinross Council · 19 November 2025
Back to Economy and Infrastructure Committee — 19 November 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality Committee or Board: Economy and Infrastructure Committee Date of Meeting: 19 November 2025 Report Title: Visitor Levy Scheme - Early Engagement and Future Timescale Report Number: 25/312 Report Author: Suzanne Cumiskey, Economic Development Officer Organisational Lead: Serge Merone, Strategic Lead - Economy, Development and Planning 1. Purpose 1.1 The purpose of this briefing is to update the Committee on the early engagement phase regarding a potential Visitor Levy Scheme for Perth and Kinross, and to highlight consideration of legislative changes that could affect the proposal and its timeline for consideration. 1.2 Sections 1. Purpose 2. Recommendations 3. Background 4. Proposal 5. Conclusion 6. Impact and Value Assessment 7. Appendices 2. Recommendations The Committee is asked to: 2.1 Consider and comment on the contents of the report. 2.2 Request that the Strategic Lead, Economy, Development and Planning bring back a report to Council in the late Spring/Summer of 2026, when possible legislative changes to the Visitor Levy Act could be considered together with the analysis of the results of the early engagement stage.
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3. Background Legislation and Engagement 3.1 In May 2024, the Scottish Parliament passed the Visitor Levy (Scotland) Act. 3.2 The Visitor Levy (Scotland) Act 2024 grants local authorities the authority to implement a levy on paid overnight accommodation, with the revenue generated by the levy scheme to be used to develop, support, or sustain local facilities and services substantially used by business and leisure visitors. 3.3 Each Local Authority within Scotland has the delegated authority to decide whether to introduce a levy, what percentage rate it will be set at, and how the revenues can be used. 3.4 In the intervening period since the introduction of the Act, Edinburgh, Glasgow, and Aberdeen Councils have decided to introduce a levy. In Edinburgh, it is set at 5% from July 2026, Glasgow 5% from January 2027, and Aberdeen 7% from April 2027. Shetland, Orkney, and Western Isles Councils have decided not to introduce a levy, whilst Argyll and Bute Council has paused its plans after public consultation. 3.5 For a Visitor Levy Scheme to be implemented, the legislation requires that there must be robust engagement with all stakeholders, including residents, communities, businesses, and visitors. The Visitor Levy Guidance, published by the Scottish Government, clearly sets out the timescales for statutory and non-statutory tasks, providing an indicative timeline of the order in which activities should be undertaken. The guidance outlines that whilst early-stage engagement is non-statutory, it is recommended and considered to be best practice. 3.6 In February 2025 and in line with the guidance, Perth and Kinross Council’s Economy and Infrastructure Committee agreed to start a period of early engagement after the launch of the Perth and Kinross Tourism Strategy & Action Plan 2025-2030, to understand the potential for a visitor levy in Perth and Kinross. 3.7 The period of early engagement commenced in March 2025 and extended to the end of September 2025. The engagement aimed to get an early indication of residents, communities, and businesses' views as to whether a Visitor Levy should be introduced and how any monies raised could be used to support the sector. 3.8 For information, a new Visitor Levy Guidance was published on 3 October 2025, giving further clarity to local authorities on issues such as levy eligibility, exemptions, and the national visitor levy collection platform.
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Forecasting Figures 3.9 Before commencing the early engagement phase, it was considered beneficial to have a solid evidence base to understand the scale of potential revenues raised from any levy scheme. 3.10 The Moffat Centre Travel and Tourism organisation, an industry specialist, was commissioned to conduct an accommodation market appraisal, to consider estimated levy income under current and forecast conditions up to 2030. 3.11 The commission researched the accommodation bed stock, average occupancy rate, and average room rates, providing a forecast for future income, based on current trends in tourism. 3.12 The types of accommodation included within the scope of the Visitor Levy (Scotland) Act legislation include Hotels, Hostels, Guest Houses, Bed and Breakfast, Self-Catering and Camping Sites. Accommodation on board a vessel, which is permanently or predominantly situated in one place, is also in scope. 3.13 From the accommodation market appraisal, it was estimated that the introduction of a levy at: - o 1% could generate around £1.6 - £1.8m annually o 3% could generate £4.9 - £5.6m annually o 5% could generate between £8.2 m - £9.3m annually o 7% levy could generate £11.5 - £13m annually 3.14 Forecasting is complicated due to estimating many variables, including future accommodation bed stock levels, occupancy rates, demand, and average room rate, among other factors. The above figures were included in the online Visitor Levy survey consultation. 3.15 The current Visitor Levy legislation from the Scottish Government allows for a percentage of room rates to be levied, which was the basis of The Moffat Centre’s accommodation market appraisal. 3.16 There are indications that legislative changes may be forthcoming and allow Local Authorities to apply a fixed rate or tiered rate, in which case new calculations would need to be made. 3.17 An economic impact assessment of any proposed Visitor Levy scheme would need to be conducted to consider the economic, social and environmental impacts of any such scheme, with consideration given to any legislative changes that may be applied.
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Use of Funds 3.18 The Visitor Levy (Scotland) Act states that revenues raised should be reinvested locally in facilities and services that are used by, or substantially for, leisure and business visitors. 3.19 In developing an outline for a visitor levy scheme, Local Authorities should identify their own priorities for development and delivery in their local area. A local authority must have regard to, and align with, the principles of relevant local tourism strategies, as well as other national, regional, and local strategies impacting the visitor economy. 3.20 The Perth and Kinross Tourism Strategy & Action Plan 2025 – 2030 was approved by this Committee on 28 May 2025 and launched in June 2025. Within the plan, the strategic framework outlines four pillars intended to guide the actions in the strategy. 3.21 The revenues raised from a potential Visitor Levy scheme could be reinvested in the following key areas: • Area Promotion and Destination Marketing Objective: Aim to drive up visitation to our area from identified audiences, increasing day visitors, as well as the length of stay and visitor spend • Investment and Infrastructure Objective: Aim to attract inward investment to enhance the visitor experience in the destination, as well as manage the impact on our communities. • Market Development and Internationalisation Objective: Aim to build on key assets, developing new tourism products and visitor experiences • Industry Growth and Resilience Objective. Aim to develop a sustainable visitor economy through supporting businesses to grow, increase levels of well-paid jobs, and build their resilience in a challenging operating environment. 4. Proposal 4.1 The early engagement phase was launched in March 2025. A communications and engagement plan was developed (See Appendix 1). This involved various activities designed to encourage all stakeholders to take part using the Scottish Government’s National Standards for Community Engagement. The standards encourage best practice and are designed to reflect the developing policy relating to participation, engagement, and community empowerment in Scotland.
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Online Survey 4.2 A survey was designed and developed to gauge views on the Visitor Levy from residents, communities, and businesses. The online survey (hosted on the Council's consultation hub) opened on 2 June 2025 and closed on 30 September 2025. 4.3 The survey sought views on support for the levy, percentage rate, number of nights capped exemptions, use of funds, and governance. There were 1590 responses as of 30 September 2025. 4.4 Responses will be analysed by an independent market research company (56 Degree Insights). The survey data will be processed through an analysis programme to extract key insights and themes, which will help shape the development of any future visitor levy scheme. Drop-in Sessions 4.5 Visitor Levy Drop-in Sessions were held in-person in localities across the area, where residents, communities, and businesses were invited to attend in person to find out more about the Visitor Levy (Scotland) Act. 4.6 Visitor Levy Drop-in sessions were held in: - • 12 June 2025 Civic Hall, 2 High Street, Perth City • 19 June 2025 Birnam Arts and Conference Centre • 24 June 2025 Blairgowrie Town Hall • 26 June 2025 Pitlochry Festival Theatre • 20 August 2025 Birks Cinema, Aberfeldy • 21 August 2025 Strathearn Arts, Crieff • 27 August 2025 Loch Leven Community Campus, Kinross • 05 September 2025 Civic Hall, 2 High Street, Perth City 4.7 These sessions were well attended and provided Officers with the opportunity to have face-to-face discussions and to listen to feedback and views. Additional online or face-to-face sessions were also organised with other stakeholders such as caravan park providers, agri-tourism businesses or large accommodation providers. 4.8 Across all engagement sessions and meetings held between June and September 2025, there was awareness of the Visitor Levy legislation. While the principle of supporting tourism infrastructure through a levy was acknowledged, the overwhelming tone of feedback from Perth & Kinross businesses was cautious and, in many cases, opposed to local implementation at this stage. Participants described a tourism sector under strain from multiple regulatory, cost, and staffing pressures. Most believed that the levy, while intended to support local services, risked further weakening business viability unless carefully designed and transparently managed at this stage.
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4.9 The main themes coming through the drop-in sessions were consistent with those being highlighted at a national level; some of these themes have been raised with the Scottish Government, the Improvement Service, and COSLA. 4.10 The key themes were • VAT Threshold • Percentage v Fixed Rate • Price Competitiveness & Price Sensitivity • Exemptions (individuals and types of accommodation) • Collection System, Cost of collection, administrative burden • Fairness & Equality • Economic Environment/ Timing of implementation/Policy Layering • Use of Funds • Governance and Transparency Visitor Survey 4.11 To further support the early engagement stage, we commissioned Progressive Partnership to conduct market research on visitors to the area to explore their attitudes towards the introduction of a visitor levy. 4.12 A short questionnaire was designed, including some of the questions from the public consultation, to allow for comparisons, to seek views on whether visitors broadly supported a visitor levy, whether a visitor levy would stop visitors from staying overnight, or lead them to choose an alternative location. 4.13 Face-to-face interviews were undertaken using CAPI interviewing on the ground by experienced trained interviewers (in visitor frequented locations, including Pitlochry High Street and Perth Museum). Interviewers ensured quality data and input by speaking to visitors who were in the area on the day of the interview. Additionally, the interviewers drew visitors’ attention to the Visitor Levy Survey online and invited them to participate, increasing the response levels to the survey. 4.14 132 responses were received against a target of 100. Draft Visitor Levy Scheme and timescale 4.15 Following the early engagement stage, a procurement exercise on Public Contract Scotland was carried out to select and appoint The Moffat Centre to draft a Visitor Levy scheme based on the findings of the early engagement stage. This was in anticipation of a report to be considered by the Council in December 2025. 4.16 The brief is to consider the strategic case, including the background and policy context; benchmarking against other levy schemes; forecasting; the early engagement feedback and analysis; strategic priorities for the local
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authority; the scheme objectives; and an option appraisal where associated economic, social, and environmental impacts will be assessed. 4.17 In a letter to the Economy and Fair Work Committee of the Scottish Parliament dated 22 September 2025, Ivan McKee MSP, Minister for Public Finance for the Scottish Government indicated that additional regulations to the current legislation were scheduled to be lodged in early in 2026. As part of this process, he also indicated the Scottish Ministers were aware that some areas of Scotland were seeking greater flexibility in how the levy is applied and administered. Consequently, they were actively considering extending powers to local authorities, including the option to introduce a single flat rate or tiered flat rate model alongside the existing percentage-based approach. Changes to the duration of the formal consultation process or the implementation period could also be considered. 4.18 Although the timeframe for any such considerations is not set and may extend beyond May 2026, it seems reasonable to wait for these considerations to be progressed further before finalising a draft Visitor Levy Scheme for Perth and Kinross. These changes may address some of challenges highlighted by residents, communities, and businesses during the early engagement process. 4.19 In addition, a Visitor Levy national platform for reporting purposes backed and endorsed by Solace to avoid multiple collection systems is being developed by the Improvement Service. The platform will allow accommodation providers to register and keep their details, submit visitor levy returns, make secure payments and get help and support. The platform will not be used for charging the levy to visitors. The platform is on track to be launched in April 2026, six months in advance of City of Edinburgh accommodation providers submitting their first return in October 2026. It would be beneficial to wait for its launch to understand and make best use of its capabilities. 4.20 It is therefore recommended to wait for these changes to be progressed further and for the Strategic Lead, Economy, Development and Planning to bring back a report to Council in late Spring/Summer 2026 for considering the introduction of a Visitor Levy Scheme for Perth and Kinross or not. 4.21 If approved and in line with current timescale, there is a minimum 12-week formal consultation stage and an 18-month implementation period between any decision and when the authority would start to collect revenues. 4.22 The earliest a Visitor Levy scheme could therefore be implemented would be March 2028. This could change if the timescale is revised as part of the consideration of amendments to the current legislation. 5. Conclusion 5.1 This Committee agreed to carry out an early engagement process with residents, communities and businesses on the introduction of a Visitor Levy Scheme for Perth and Kinross. An intensive engagement process has been carried out and results are being analysed. It was anticipated to submit a draft
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Visitor Levy Scheme to the Council for consideration in December 2025. However, due to possible consideration of legislation changes, it is now proposed to submit a report in late Spring/Summer 2026. 6. Impact and Value Assessment Visitor Levy Early Stage Engagement (Adobe PDF documents) 7. Appendices 7.1 Appendix 1 - Communication and Engagement Plan