Draft Visitor Levy Scheme for Perth and Kinross for Statutory Public Consultation
Perth and Kinross Council · 17 June 2026
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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: Perth and Kinross Council Date of Meeting: 17 June 2026 Report Title: Draft Visitor Levy Scheme for Perth and Kinross for Statutory Public Consultation Report Number: 26/175 Report Author: Kirsty Easton, Business Growth Team Leader - Economy, Development and Planning Organisational Lead: Serge Merone, Strategic Lead - Economy, Development and Planning ___________________________________________________________________ 1. Purpose 1.1 The purpose of this report is to present a Draft Visitor Levy Scheme for Perth and Kinross for consideration by Council to proceed to statutory public consultation. The Council is not being asked at this stage to implement a Visitor Levy. 1.2 Sections 1. Purpose 2. Recommendations 3. Background/Context 4. Main Issues / Proposed Visitor Levy Scheme 5. Proposals / Use of Visitor Levy Funds 6. Conclusion 7. Impact Value Assessment 8. Appendices 2. Recommendations It is recommended that Perth and Kinross Council: 2.1 Notes the content of the report; 2.2 Approves, for the purpose of undertaking statutory public consultation, the Draft Visitor Levy Scheme (as set out in this report and Appendix 3), based on a fixed-rate levy per room/unit per night;
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2.3 Notes that the Draft Visitor Levy Scheme identifies £4 per night fixed rate, to be applied for the full length of stay, as the initial reference point for consultation, alongside alternative options of £3 and £5; and instructs officers to test these alongside other permissible options (including a percentage based-rate), through the statutory consultation; 2.4 Instructs officers to undertake the statutory public consultation in accordance with the Visitor Levy (Scotland) Act 2024) and the Visitor Levy (Scotland) Amendment Act, and to further develop the Draft Scheme, including refinement of the fixed-rate model, exemptions, governance arrangements and proposed use of revenues, having regard to consultation feedback; 2.5 Asks the Strategic Lead Economy, Development and Planning to prepare a further report to be presented to the Council following completion of a statutory public consultation of no less than 12 weeks setting out: - the outcome of consultation; - a finalised proposed Visitor Levy Scheme (including recommended levy rate); - detailed implementation, governance and administrative arrangements; and - a recommendation on whether to adopt a Visitor Levy in Perth and Kinross. 3. Background/Context 3.1 In line with the requirements of the Visitor Levy (Scotland) Act 2024, and Scottish Government and VisitScotland guidance, a minimum 12-week statutory public consultation must be undertaken before any final decision is taken on the introduction of a Visitor Levy Scheme in Perth and Kinross. The consultation will seek views on a draft Visitor Levy Scheme and will include specific questions on the key elements of the scheme, including: • the proposed levy model and rate (including any variation or caps); • the scope of application, including geographical coverage; • exemptions, reductions or reliefs; • the proposed use of revenues and the balance of investment priorities; • governance and decision-making arrangements, including the role of any Visitor Levy Forum; • the anticipated impacts on businesses, communities and the visitor economy; • implementation arrangements and timescales; and • monitoring, reporting and review of the scheme. This consultation will provide stakeholders, including local communities, businesses and the tourism sector, with the opportunity to inform and shape the final scheme prior to consideration by Council.
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3.2 The Visitor Levy (Scotland) Act 2024 provides local authorities with discretionary powers to introduce a levy on overnight accommodation within their area. 3.3 In March 2026, the Visitor Levy (Scotland) Amendment Act was passed. This introduced additional flexibility, enabling local authorities to apply: • a fixed rate per night. • a tiered fixed rate per night structure; or • a percentage-based levy. 3.4 The Visitor Levy (Scotland) Amendment Act has been passed by the Scottish Parliament and received Royal Assent on 21 May 2026. The Act is now on the statute book. As with most legislation, it provisions will come into force in accordance with commencement arrangements, which are expected to be set by Scottish Ministers through regulations. 3.5 The Visitor Levy (Scotland) Amendment Act was developed following feedback from local authorities, accommodation providers and tourism sector representatives across Scotland regarding the practical operation of percentage-based visitor levy models. The amendments received cross-party support during Parliamentary consideration and reflected broader recognition that greater flexibility was required to allow local authorities to develop approaches better suited to local circumstances. Industry and tourism bodies have also been more broadly supportive of the additional flexibility provided through the Amendment Act, particularly in relation to the potential for simpler fixed-rate models which may reduce administrative complexity for accommodation providers and improve transparency for visitors. 3.6 In this context, the proposals set out within this report are being brought forward based on the Act and anticipated commencement arrangements. The Council is not being asked at this stage to implement a Visitor Levy, but rather to approve a draft scheme for the purposes of statutory public consultation. Any final decision to adopt a Visitor Levy, including the model to be applied, will be taken by Council at a later date and will be subject to the relevant legislation being in force at that time. 3.7 This approach is considered to be appropriate and proportionate, enabling continued development of the Scheme and stakeholder engagement, while ensuring that no implementation or binding commitment is made in advance of the legislative framework being fully in place. Early Engagement 3.8 VisitScotland Visitor Levy guidance highlights early engagement as best practice, enabling local authorities to engage stakeholders at an early stage to inform scheme development and refine proposals in advance of the statutory consultation required under the Act, leading to a more robust and evidence- based consultation.
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3.9 In February 2025, Council approved early engagement with residents, businesses and visitors to inform the development of a potential Visitor Levy Scheme. A detailed summary of early engagement findings is provided in Appendix 1 and Appendix 2. Appendix 2 (October 2025) presents the core analysis, based on a validated sample of 1,126 responses, and is therefore regarded as the most robust and statistically reliable dataset. Appendix 1 (February 2026) provides an updated analysis based on the full dataset of 1,590 responses, including a large proportion of visitor responses. This version has been produced to ensure full transparency and allow scrutiny of all responses. However, it includes data that may be less reliable, and its findings should therefore be interpreted with caution. 3.10 It should also be noted that the early engagement findings were derived from open-ended questions exploring a potential Visitor Levy, rather than a defined draft scheme. The draft scheme presented in this report is more specific and, if approved, will be subject to a minimum 12-week statutory public consultation. It is therefore anticipated that the findings from the statutory public consultation will provide a more specific and informed view based on the detailed proposals set out. The potential for equality-related issues to arise within the statutory public consultation process will be actively considered, including when determining consultees, publicising a consultation, and publishing the results through a consultation report. Key points of early engagement activities are set out below: 3.11 Engagement activity undertaken between June and September 2025 included: • an online survey (1,590 responses). • stakeholder sessions and drop-in events. • independent visitor research. 3.12 Key themes identified through engagement included: • concerns regarding the complexity of a percentage-based model. • administrative burden on accommodation providers. • potential impacts on price competitiveness. • the importance of transparency in how funds would be used. 3.13 The visitor economy is a key sector within Perth and Kinross, contributing: • approximately 2.01 million nights annually. • an estimated £364 million in visitor expenditure (c. £324 million Gross Value Added). • 7,000 full-time equivalent jobs. 3.14 The proposed Visitor Levy Scheme aligns with the ambitions set out in: • the Perth and Kinross Tourism Strategy 2025–2030. • Perth and Kinross Economic Action Plan. • the Council’s Corporate Plan. • wider regional and national economic priorities.
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4. Main Issues / Proposed Visitor Levy Scheme Fixed Rate Visitor Levy Scheme 4.1 Officers propose that the Draft Visitor Levy Scheme (Appendix 3) is based on a fixed-rate levy per unit per night applied for the full length of stay across the Perth and Kinross Council area. 4.2 The fixed-rate approach reflects feedback from early engagement with accommodation providers, wider tourism businesses, residents and community organisations at a local and national level, and is considered to provide: • simplicity and transparency for visitors. • reduced administrative complexity for accommodation providers. • greater certainty of income to support investment. 4.3 While there was some support for the principle of a visitor levy, engagement highlighted concerns about the complexity, transparency and administrative burden associated with a percentage-based model. In particular, businesses raised challenges linked to variable room rates, bundled products and seasonal pricing. Following the introduction of amended legislation permitting a fixed-rate approach, officers have designed the scheme with this feedback in mind and consider that a fixed-rate levy better addresses the concerns raised, while still delivering income levels broadly aligned with those discussed during early engagement. Members should note that a fixed-rate approach may result in a proportionally higher charge at lower-cost accommodation. However, on balance, it is considered that the overall benefits of a fixed-rate approach, in terms of simplicity, transparency and administrative efficiency, outweigh the differences in proportional impact between lower-cost and premium accommodation. 4.4 The following indicative fixed-rate options have been modelled: • £3 per night. • £4 per night. • £5 per night. 4.5 Based on 2024 visitation data (2.01 million nights), estimated annual income is: • £6.0 million at £3. • £8.0 million at £4. • £10.0 million at £5. These figures are indicative and will be subject to adjustment based on exemptions, caps and behavioural impacts.
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4.6 The Act requires local authorities to set the fixed amount the levy will be charged at and publicise this as part of the outline proposed scheme. On the basis of modelling and, as highlighted by stakeholders during early engagement, the level of investment needed such as in tourism marketing, infrastructure and visitor management, a fixed-rate levy of £4 per night is identified as the Council’s initial reference point for consultation. Alternative rates of £3 and £5 per night are also presented to test stakeholder views and to understand the sensitivity of income generation and potential impacts across the visitor economy. 4.7 The proposed levy will apply to all chargeable overnight accommodation based within the Perth and Kinross Council boundary. This includes: • Hotels. • Hostels. • Guest houses. • Bed and breakfast accommodation. • Self-catering accommodation, including short-term lets. • All paid accommodation on caravan sites and camping sites, including: o static caravans o touring caravans o campervan and motorhome pitches o temporary tent pitches. • Accommodation in a vehicle or vessel which is permanently or predominantly situated in one place. • Any other premises where a room or area is provided for residential purposes and is not the visitor’s only or usual place of residence. 4.8 The Visitor Levy is payable by any person staying overnight in accommodation within the Perth and Kinross Council area where that accommodation is not the person’s only or usual place of residence, whether temporary or otherwise. 4.9 Individuals who do not have an only or usual place of residence are therefore excluded from liability to pay the levy. This includes, but is not limited to: • people who are homeless or at risk of homelessness. • refugees and asylum seekers; and • individuals whose homes are unfit or unsafe for habitation, including those experiencing domestic abuse or other forms of violence. 4.10 Members of Gypsy/Traveller communities staying on dedicated sites are also excluded from paying the levy. 4.11 In addition to the exclusions above, individuals defined in section 14(1) of the Visitor Levy (Scotland) Act are exempt from paying the levy.
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4.12 At the time of agreeing the Scheme, exemptions under section 14(1) apply to individuals in receipt of the following benefits: • Disability Living Allowance (DLA) • Disability Assistance • Attendance Allowance • Pension Age Disability Benefit • Personal Independence Payment (PIP) 4.13 In recognition of changes to disability benefits in Scotland from 2025, exemptions will also apply to individuals in receipt of: • Adult Disability Payment (ADP). • Pension Age Disability Payment (PADP). • Scottish Adult Disability Living Allowance (SADLA). 4.14 Certain carers are also exempt from the Visitor Levy, specifically individuals in receipt of: • Carer’s Allowance. • the Carer’s Element of Universal Credit. Payment, Reimbursement and VAT 4.15 Individuals who are exempt or excluded from paying the levy will be required to pay the levy at the point of purchase to the accommodation provider and subsequently apply to the Council for reimbursement, unless the accommodation has been arranged and paid for directly by the Council. 4.16 In line with current HMRC interpretation, the visitor levy is expected to form part of the VATable value of accommodation. This means VAT will be applied to the levy amount where the accommodation provider is VAT‑registered, increasing the effective price impact on visitors. This position has been subject to ongoing professional discussion but remains the basis for current scheme design. Visitors will therefore initially pay the visitor levy inclusive of VAT where the accommodation provider is VAT-registered. The levy itself will be paid across by the Council, but the VAT element will not be recoverable, resulting in a small residual cost to the visitor excluded or exempt from paying the levy. If the accommodation provider is non VAT-registered, there would be no residual cost to the visitor. Discretionary Exemptions 4.17 Certain accommodation providers may apply to the Council for a discretionary site-based exemption where both of the following criteria are met: • the property is occupied by a charity or a trustee of a charity; • and overnight stays are wholly or mainly for charitable or educational purposes.
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4.18 This discretionary exemption aligns with circumstances in which charities may be entitled to mandatory Non-Domestic Rates relief. Applications may therefore be cross-checked against the relevant Non-Domestic Rates records. 4.19 In addition, it is proposed that the Council includes a discretionary exemption for: • Perth and Kinross residents staying overnight in the local authority area, recognising their existing contribution to local services through Council Tax and their year-round contribution to the local economy. 4.20 This exemption is intended to: • Acknowledge that residents already fund many of the services and infrastructure that are supported by a visitor levy when visiting another area. • Encourage local tourism and overnight stays within Perth and Kinross, supporting local businesses. • Respond to concerns raised during early engagement with elected members and stakeholders that residents from more rural or island communities within Perth and Kinross may require overnight accommodation in connection with essential activities, including attendance at medical or hospital appointments. • Avoid the need for residents to disclose sensitive personal or medical information in order to qualify for an exemption. An all-residents exemption removes the requirement to evidence the reason for stay, simplifying administration and protecting individual privacy. Accommodation Not Subject to the Levy 4.21 The Visitor Levy does not apply to the following types of accommodation or stays: • Local authority Gypsy/Traveller sites and registered social landlord Gypsy/Traveller sites. • Accommodation provided in a vehicle or vessel undertaking a journey involving one or more overnight stops; This includes Motorhomes & Campervans. • Accommodation provided free of charge. • Seasonal pitches on caravan sites unless the pitch is sub-let to another visitor for an overnight stay. 5. Proposal / Use of Visitor Levy Funds 5.1 In line with legislative requirements, all income raised through a Visitor Levy must be reinvested locally in facilities and services which are used by, or for the benefit of, visitors. Visitor Levy income can support both revenue and capital investment that is aligned to the statutory purposes of the Scheme.
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Any capital investment or borrowing would be subject to the Council’s existing prudential borrowing framework and financial regulations. The Act does not stipulate that revenue generated by a visitor levy should be used within a certain time period. Local authorities may choose to carry funds forward between years or place funds in earmarked reserves. This may be particularly relevant in the early years of a Visitor Levy scheme, where estimation of expected levels of net visitor levy proceeds may be more difficult to predict. 5.2 In developing the Draft Scheme, the Council has aligned proposed investment priorities with the Perth and Kinross Tourism Strategy 2025–2030 and wider economic, community and place-based objectives. How Visitor Levy Income Could Be Used in Practice 5.3 The strategic purpose of the Visitor Levy is to support the delivery of high- quality visitor experiences, strengthen the resilience of the visitor economy, and ensure that tourism growth is sustainable and well-managed. 5.4 If agreed, the draft Visitor Levy scheme proposes priority areas for investment of revenues, including: - Supporting the tourism sector - Supporting communities and managing impacts of tourism 5.5 Subject to approval, the statutory public consultation will seek views on the proposed use of Visitor Levy revenues, including the appropriate balance of investment across these priority areas. For consultation purposes, it is proposed that investment would be broadly balanced between these priority areas, while allowing flexibility to respond to emerging needs and priorities. Supporting tourism 5.6 Investment to support tourism will be aligned the Tourism Strategy and is expected to focus on: • Destination marketing and promotion. • Visitor infrastructure and services. • Tourism product and market development. • Industry growth, skills and resilience. • Community-led tourism initiatives. 5.7 By way of illustration, a single year of visitor levy income could support a programme of investment across these themes, including: • Support for the promotion of Perthshire as a year-round destination, especially off season. • Support for local heritage, interpretation and visitor information services, including libraries and local archives, supporting the role of providing tourist information.
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• Support for the maintenance and enhancement of local cultural and community assets, including libraries, some leisure facilities which are used by visitors and both residents and visitors • New integrated visitor hubs on key routes such as the River Tay Way, including toilets, showers, bike shelters and Changing Places facilities. • Enhanced signage, wayfinding and interpretation across Perth, rural towns and key long distance tourism routes. • Infrastructure for campervan and motorhome facilities, including waste disposal points along high-demand corridors such as the A9. • A programme of countryside rangers and visitor management at tourism hotspots to protect landscapes and reduce pressure on communities. • Development of cultural and heritage experiences linked to Perth’s UNESCO City of Craft and Folk Art status. • Support for off-season festivals, major events and business tourism activity, helping extend the season and spread visitor benefits year-round. • Investment in active travel and cycling infrastructure. • Community grants for locally-led visitor projects in towns and villages across Perth and Kinross. • Investment in transport connectivity, active travel infrastructure and public realm improvements which improve accessibility for residents, visitors and local businesses • Improvements to public spaces, parks and visitor-facing town centre infrastructure which support both community wellbeing and the visitor experience Supporting Communities and Managing Tourism Impacts 5.8 Importantly, the visitor levy is not solely intended to support tourism growth. It also provides an opportunity to support communities in managing the impacts of visitor activity, particularly in areas experiencing higher levels of demand. Many facilities and services used by visitors are shared with and relied upon by local residents and communities. 5.9 This may include investment to: • provide additional countryside rangers and land management at busy visitor sites. • support the maintenance of roads, car parks, toilets and waste facilities in high-pressure areas. • improve visitor management, signage and parking to reduce disruption to local communities. • support local amenity improvements in places most affected by tourism. • contribute to projects addressing housing and short-term let pressures, where clearly linked to visitor impacts. • Support the maintenance and improvement of community facilities and public assets which experience additional demand associated with visitor activity.
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5.10 This approach ensures that the benefits of tourism are more directly reinvested into the places most affected by visitor activity, helping to balance economic opportunity with community wellbeing and environmental sustainability. It recognises that investment in the visitor economy can also deliver wider social and place-based benefits for residents across Perth and Kinross. Governance and Transparency 5.11 Decisions on the allocation of Visitor Levy funds will be taken by the Council or relevant Committee in accordance with established governance arrangements with the Visitor Levy Forum providing advice in a non-decision- making capacity. Local authorities are required to maintain separate accounts for the money received under the Visitor Levy scheme. 5.12 To ensure transparency and accountability, the Council will publish an annual “Levy In, Levy Out” report see section 5.23 below. Visitor Levy Collection and Enforcement 5.13 Accommodation providers operating within the Perth and Kinross Council area will be responsible for the collection of the Visitor Levy on behalf of the Council. 5.14 Providers will be required to submit quarterly returns via the proposed national online Visitor Levy portal (visitorlevy.scot). These returns must detail: • the total accommodation charges liable for the levy; and • the total Visitor Levy collected during the reporting period. 5.15 Payment of the levy due will be made at the same time as the submission of the quarterly return. 5.16 To support accommodation providers in meeting the costs associated with administering the Visitor Levy, providers will be entitled to retain a proportion of the levy collected at their establishment(s) before remitting the remaining balance to the Council. 5.17 The proposed retention rates are as follows: • 2.5% of levy collected for all businesses with no cap 5.18 Accommodation providers will be required to maintain accurate and complete records of all transactions subject to the Visitor Levy. 5.19 Perth and Kinross Council will undertake monitoring and inspections, where necessary, to ensure compliance with the requirements of the scheme, including the accuracy of returns and the timely remittance of levy payments.
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5.20 Accommodation providers who fail to comply with the scheme may be subject to penalties and enforcement action, in accordance with the powers set out in the Visitor Levy (Scotland) Act and associated regulations. Reviewing the Scheme 5.21 In close liaison with the Visitor Levy Forum, the Council will formally review the Visitor Levy Scheme every three years to assess whether it is achieving its stated objectives and to evaluate the impacts of the Scheme on: • accommodation providers and the wider visitor economy • visitors to the area • local communities 5.22 The findings of each review will be published, alongside a report detailing how Visitor Levy income has been spent and the benefits delivered through levy-funded projects. The findings will also contribute to a wider evaluation of the impact of tourism on Perth and Kinross residents, businesses and communities. The three-year review would also be the opportunity to consider inflation impacts on the fixed amount. Annual Reporting and Monitoring 5.23 Within the first 18 months of the Scheme’s launch, and for each subsequent 12-month period, the Council will prepare and publish a “Levy In, Levy Out” annual report. This report will set out: • the total value of Visitor Levy income collected. • administration costs and net proceeds. • how net proceeds have been allocated and spent. • the performance of the Scheme against its objectives. • area level breakdowns of investment, enabling communities to see the benefits of levy revenues raised locally. 5.24 Performance will be assessed using existing and proportionate monitoring arrangements, which may include: • resident and visitor satisfaction surveys. • occupancy and demand trend data. • reports to Council Committees and the Visitor Levy Forum. • monitoring of investment across services, infrastructure, culture, heritage, and events • evaluation of funded projects and programmes. 5.25 This annual reporting will support transparency, accountability, and continuous improvement in the delivery of the Scheme.
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Amendment of the Scheme 5.26 Where the Council proposes to amend the Scheme following a review, it will undertake public consultation on the proposed changes and publish a report setting out the decision taken and the justification for it. 5.27 Significant changes to the Scheme will be subject to a statutory 18-month implementation period. Significant changes include: • increasing the geographical area covered by the Scheme • increasing the fixed rate of the levy • removing any existing exemptions 5.28 An increase in the levy rate, or a change between a percentage-based levy and a fixed-amount levy, will be subject to a minimum six-month implementation period, in accordance with the provisions of the Visitor Levy (Scotland) Act and the Visitor Levy (Scotland) Amendment Act, where applicable. Visitor Levy Forum 5.29 Within six months after the date of the decision to introduce a Visitor Levy scheme, a Visitor Levy Forum will be established to provide advice and support in relation to the operation and ongoing development of the Visitor Levy Scheme. The Forum will be consulted on the review of the Scheme, any proposed amendments, and the priorities for how Visitor Levy revenues are allocated. 5.30 The Forum will comprise a broad range of representatives reflecting the diversity of the visitor economy and local communities across Perth and Kinross. Membership will include representation from: • accommodation providers, covering a range of accommodation types and locations across the area. • wider tourism-related businesses with an interest in the visitor economy. • local tourism organisations and destination management bodies. • local communities and residents, with particular emphasis on rural areas and communities experiencing higher visitor pressures. • cultural and creative organisations with a visitor-facing role; and • national tourism organisations, including VisitScotland. 5.31 The Forum will also seek to reflect visitor perspectives, drawing on visitor insight, research, and feedback data to ensure that discussions and advice are informed by the experiences and priorities of visitors to Perth and Kinross. 5.32 One or more representatives of Perth and Kinross Council will attend Forum meetings to provide information, context, and advice. Council officers may contribute to discussions and make recommendations but will not be members of the Forum.
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5.33 The Visitor Levy Forum will operate as a non-decision-making, advisory body. All decisions relating to the Visitor Levy Scheme, including decisions on rates, exemptions, use of funds and amendments to the Scheme, will remain the responsibility of Perth and Kinross Council, acting through the appropriate governance arrangement. 5.34 The remit of the Visitor Levy Forum will include: • advising on annual investment priorities for the use of Visitor Levy funds, within the statutory framework set out in the Act • reviewing and commenting on the performance and delivery of the Scheme against its objectives • considering evidence on the impacts of the Scheme on businesses, visitors, and communities • providing formal comment on any proposed changes to levy rates, caps, exemptions, or the geographic scope of the Scheme prior to public consultation 5.35 The Forum will help ensure that the Visitor Levy Scheme is informed by sector expertise, community insight, and visitor experience, supporting transparent and effective use of levy revenues for local benefit. The Forum will contribute to a wider evaluation of the impact of tourism on Perth and Kinross residents, businesses and communities. As part of the consultation, views will also be sought on the relationship between Perth and Kinross Tourism Partnership and the Visitor Levy Forum. Scheme Administration 5.36 The introduction and ongoing administration of a Visitor Levy scheme will require a combination of staffing, systems, and governance resources. Key requirements include establishing and operating a local registration and returns process for accommodation providers (likely through the national visitorlevy.scot platform), processing and reconciling levy payments, undertaking compliance, audit and enforcement activity, and administering exemptions and reimbursements. In addition, resources will be required for stakeholder engagement, communications, financial management, and annual reporting to ensure transparency and effective use of funds. Particular operational demands arise from managing exemption claims (for example disability-related reimbursements), which will require trained staff, appropriate data protection arrangements, and timely processing systems. 5.37 While it is anticipated that administration costs can be met from levy income, the Council will need to ensure sufficient capacity and expertise are in place from the outset to support implementation and maintain an efficient, compliant and customer-focused service. Detailed administrative costs have not yet been finalised and will be developed and presented as part of the full scheme for Council consideration following the statutory public consultation. These costs will be subject to further refinement during the implementation period, as operational arrangements are tested and finalised.
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Economic Analysis 5.38 An independent Economic Impact Assessment (Appendix 4) has been undertaken to assess the potential negative and positive impacts of the proposed Visitor Levy Scheme on the Perth and Kinross visitor economy. The assessment considered visitor expenditure, economic value, employment supported by tourism activity and the potential impacts of different levy levels under a range of demand scenarios. 5.39 The assessment confirms that the visitor economy is a significant component of the Perth and Kinross economy, generating an estimated £367 million in annual visitor expenditure and supporting around 7,000 full-time equivalent jobs across accommodation, hospitality, retail, transport and visitor attractions. 5.40 The modelling indicates that, while the introduction of a Visitor Levy may result in some displacement effects, these are expected to be comparatively modest relative to the scale of revenue generated for reinvestment. Under the central modelling scenario of a £3 nightly levy, the reduction in Gross Value Added (GVA) is estimated at approximately 2%, while generating around £5.85 million annually for reinvestment in the visitor economy and local communities. A £4 rate would be expected to result in a greater reduction in GVA, estimated at around 2.5% to 4%, while generating approximately £8 million in annual revenue. 5.41 Importantly, the assessment notes that the modelling does not include the additional positive economic impacts associated with reinvestment of levy proceeds. Indicative analysis suggests that reinvestment in destination infrastructure, events, marketing, visitor management and public realm improvements could generate additional economic value and employment benefits over time. 5.42 An additional Competitive Advantage Analysis has also been undertaken and is included as Appendix 5. This analysis considered comparator destinations including Edinburgh, Amsterdam, Iceland and New Zealand and concluded that well-governed visitor levy schemes can support improvements in visitor experience, infrastructure, destination management, environmental sustainability and place quality, without materially impacting visitor demand when revenues are transparently reinvested. It should be noted that the international comparator analysis does not explicitly account for differences in VAT treatment of visitor levies. In the UK context, where accommodation is subject to VAT at 20%, the combined effect of VAT and a visitor levy may result in a higher effective price increase than in some comparator destinations. While international evidence indicates that visitor numbers are generally not significantly affected by moderate price increases, this difference should be recognised when interpreting the scale of potential impacts in Perth and Kinross.
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5.43 The findings of both assessments suggest that the key policy consideration is not solely the introduction of a levy itself, but the long-term value created through strategic reinvestment of levy income into infrastructure, services and destination improvements that benefit residents, businesses and visitors alike. Timeline and Next steps 5.44 If approved, the draft Visitor Levy Scheme will be subject to a statutory public consultation of at least 12 weeks. A further report will then be brought to Council to consider the scheme, which may be amended in light of consultation feedback. Subject to approval, a statutory implementation period of 18 months would then apply before the Visitor Levy Scheme comes into effect. 5.45 The figure below provides a timeline and Perth and Kinross Visitor Levy current position: 6 Conclusion 6.1 The Draft Visitor Levy Scheme presents an opportunity to secure sustainable, long-term investment in the visitor economy, supporting infrastructure, services and communities across Perth and Kinross. 6.2 The proposed fixed-rate approach reflects feedback from early engagement and provides a clear, transparent and deliverable model for further consideration. 6.3 In bringing forward these proposals, officers recognise the importance of balancing the needs of the visitor economy with the interests of residents, communities and local businesses. We are here
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6.4 Approval of the Draft Scheme will enable statutory public consultation of at least 12 weeks to be undertaken, ensuring that stakeholders have a further opportunity to shape the final design of the scheme prior to any decision on implementation. 6.5 Subject to approval, and reflecting the formal consultation, a report will be brought back to Council, asking for the adoption of a Visitor Levy in Perth and Kinross. 7. Impact Value Assessment Impact and Value Assessment 8. Appendices 8.1 Appendix 1 – PK Visitor Levy Consultation Report Updated (February 2026) 8.2 Appendix 2 – PK Visitor Levy Consultation Report (October 2025) 8.3 Appendix 3 – PK Draft Visitor Levy Scheme 8.4 Appendix 4 – PK Visitor Levy Scheme Economic Impact Assessment 8.5 Appendix 5 – Competitive Advantage Analysis