Argyll and Bute Council Visitor Levy Consultation Report
Argyll and Bute Council · 24 September 2025
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 24th SEPTEMBER 2025 ARGYLL AND BUTE COUNCIL VISITOR LEVY CONSULTATION REPORT 1.0 EXECUTIVE SUMMARY 1.1 With various Councils considering a visitor levy to raise investment for their visitor economies, Argyll and Bute Council took the decision to carry out a consultation exercise to gather views on a draft visitor levy scheme. The purpose of this paper is to provide members of Argyll and Bute Council with the findings from the consultation. These findings have been produced by an independent agency (EKOS Ltd) and are set out in the report prepared by EKOS, in Appendix 1. 1.2 The consultation exercise was designed to gather widespread views on a visitor levy by providing different options for getting informed and involved; and to provide an understanding of the reasons behind those views. The exercise achieved the aim of gathering views from residents, businesses and visitors; and considerable insight into the views provided with 3,352 responses received (including hard copy and letter responses) supplemented by four webinars and ten drop-in events held across the region. 1.3 The draft scheme was set in the context of the Visitor Levy (Scotland) Act 2024. It is important to note that there are elements within this Act that Argyll and Bute Council cannot change (see Table 1.1 in the appended report). 1.4 Overall, 57% of survey respondents (when we combine quantitative and qualitative responses) indicated that they did not support a visitor levy being introduced across Argyll and Bute, and a further 16% disagreed with the proposal to set a levy rate, if a visitor levy was introduced, at 5%. 1.5 However, it is estimated that over a 10-year period, the Council could generate between £6.10 and £6.90 in tax revenue for every £1 of costs. 1.6 It is recommended that the Council gives consideration to three options as outlined below: Option 1: not to introduce a Visitor Levy Scheme across Argyll and Bute, noting both the positive and negative medium to longer term consequences of this option. Option 2: to agree to introduce a Visitor Levy Scheme across Argyll and Bute, agreeing a percentage rate, whether to apply a cap and the position of local exemptions to support the long-term future of the visitor economy through financial investment from the Council. If a scheme is agreed by Members, the 18-month lead in period would
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begin and implementation would be from 1st April 2027. It is suggested that with this option the scheme could be reviewed after one year of implementation. Option 3: to pause the implementation of the scheme to allow the Council to use the evidence collected in the appended consultation report to inform further work by officers, including: (1) Further consideration as to whether to apply a cap, or not; (2) Consideration of the possibility of local exemptions to support the long-term future of the visitor economy through financial investment from the Council; (3) Supporting Members to lobby both the Scottish and UK Governments on the key concerns raised, specifically the use of a flat rate versus a percentage rate and the concerns over the VAT threshold. In light of the advice outlined in paragraph 4.32, a report is to be brought back no later than Council in September 2026 to advise of progress on the points noted above, and specifically the position of the Scottish Government in regard to revisiting the Visitor Levy Legislation. It should be noted that should this option be accepted, and the Council decide to progress with a visitor levy scheme after this time, it is likely that any revenue collection would not be possible until the financial year 2028/2029 at the earliest.
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 24th SEPTEMBER 2025 ARGYLL AND BUTE COUNCIL VISITOR LEVY CONSULTATION REPORT 2.0 INTRODUCTION 2.1 With Councils across Scotland considering the introduction of a visitor levy, the Council decided at a special meeting on 20th December 2024, to carry out a consultation exercise to gather views on a draft visitor levy scheme. The consultation exercise ran from 16th January to the 10th April 2025. 2.2 The draft proposals were based on 5% levy (working figure) to apply all year round, taking into consideration the required national statutory exemptions, but with no additional discretionary exemptions at a local level. 2.3 The separate residents, business and visitor surveys received a total of 3,352 responses, and the majority (2,061; 61%) of responses being from residents. The surveys were further informed by four webinars and ten drop-in events held across the region. The findings of each of the three surveys can be found, in full detail, in the appended report, see Appendix 1. 3.0 RECOMMENDATIONS 3.1 It is recommended that the Council gives consideration to three options as outlined below: Option 1: not to introduce a Visitor Levy Scheme across Argyll and Bute, noting the positive and negative medium to longer term consequences of this option. Option 2: to agree to introduce a Visitor Levy Scheme across Argyll and Bute, agreeing a percentage rate, whether to apply a cap and the position of local exemptions to support the long-term future of the visitor economy through financial investment from the Council. If a scheme is agreed, the 18-month lead in period would begin and implementation would be from 1st April 2027. It is suggested that with this option the scheme could be reviewed after one year of implementation. Option 3: to pause the implementation of the scheme to allow the Council to use the evidence collected in the appended consultation report to inform further work by officers, including: (1) Further consideration as to whether to apply a cap, or not; (2) Consideration of the possibility of local exemptions to support the long-term future of the visitor economy through financial investment from the Council;
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(3) Supporting Members to lobby both the Scottish and UK Governments on the key concerns raised, specifically the use of a flat rate versus a percentage rate and the concerns over the VAT threshold. In light of the advice outlined in paragraph 4.32, a report is to be brought back no later than Council in September 2026 to advise of progress on the points noted above, and specifically the position of the Scottish Government in regard to revisiting the Visitor Levy Legislation. It should be noted that should this option be accepted, and the Council decide to progress with a visitor levy scheme after this time, it is likely that any revenue collection would not be possible until the financial year 2028/2029 at the earliest. 4.0 DETAIL Views on the Introduction of a 5% Visitor Levy across Argyll and Bute 4.1 Overall, 57% of survey respondents (when we combine quantitative and qualitative responses) indicated that they did not support a visitor levy being introduced across Argyll and Bute and a further 16% disagreed with the proposal to set the levy rate at 5%, as detailed below in Table 1. Table 1: To what extent do you agree with the Argyll and Bute Council proposal to set the levy rate at 5%? Question Businesses Residents Visitors Overall Agree or strongly agree 6% 26% 10% 19% Neither agree nor disagree 4% 8% 6% 7% Disagree or strongly disagree 22% 13% 21% 16% Don’t know 1% 2% 1% 1% I don’t support a levy being introduced across Argyll and Bute 67% 52% 62% 57% Source: Argyll and Bute Council Surveys Base = 727 (businesses); 2,041 (residents); 538 (visitors); Overall (3,306). Views on the Proposed Visitor Levy Scheme Objectives 4.2 The proposed Visitor Levy Scheme objectives aligned with the four strategic objectives/priorities within the Argyll and the Isles Strategic Tourism Partnership Strategy. The objectives were informed during a discussion at a Shadow Visitor Levy Forum meeting on 24th October 2024 to mirror the work already underway by the Argyll and the Isles Strategic Tourism Partnership (AISTP), five members of whom were Shadow Visitor Levy Forum members to prepare a revised strategy during 2025. The Shadow Visitor Levy Forum brings together representatives from the Council, Visit Scotland, HIE, Lomond and Trossachs National Park and Argyll and the Isles Tourism Co-operative (AITC). 4.3 Survey respondents expressed a high level of disagreement with the proposed scheme objectives as outlined in Table 2 below.
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Table 2: To what extent do you agree with the visitor levy scheme objectives? Scheme objectives Agree or strongly agree Neither agree nor disagree Disagree or strongly disagree Extending the season and spreading visitors across the destination 29% 22% 50% Reaching new audiences 31% 23% 46% Sustaining and improving the visitor offer 35% 19% 45% The journey towards net zero 23% 25% 52% Source: All respondents from Argyll and Bute Council Surveys 4.4 There was evidence of scepticism and a general lack of trust in the Council’s ability to manage the funds effectively, however, the points that came through in the feedback are all addressed/stipulated in the legislation. Views on Argyll and Bute Councils proposed position on Local Exemptions 4.5 As depicted in Table 3, the majority (59%) of survey respondents did not agree with the Council’s proposed position on local exemptions (i.e. that a proposed visitor levy scheme only includes exemptions set out in the national legislation). Table 3: To what extent do you agree or disagree Argyll and Bute’s (proposed) position on local exemptions? Businesses Residents Visitors Overall Agree or strongly agree 16% 26% 16% 22% Neither agree nor disagree 17% 13% 14% 14% Disagree or strongly agree 60% 57% 66% 59% Don’t know 7% 3% 4% 4% Source: Argyll and Bute Council Surveys Base = 727 (businesses); 2,042 (residents); 538 (visitors); Overall (3,307). 4.6 It was clear from the consultation findings that a ‘one-size-fits-all’ approach to the consideration of local exemptions was not appropriate. Local exemptions from paying a levy, put forward by respondents, are as follows: • all residents of Argyll and Bute registered for council tax. • people staying in Argyll and Bute on a temporary basis for business/work or non-leisure trips (e.g. workers and tradespeople and NHS staff). • micro and small businesses that have consciously structured their business to remain below the £90,000 VAT threshold to avoid the complexity and costs associated with VAT compliance. • carers who accompany/support disabled people on holiday or essential trips and appointments. • charitable accommodation providers and overnight stays for charitable purposes. 4.7 For 22% of respondents who agreed with the Council’s current draft proposals on including national exemptions only, put forward the following points: • local exemptions would have a wider negative impact on scheme administration and/or on accommodation providers. • increase the complexity of scheme administration and could make it too onerous, in particular for smaller accommodation providers.
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• risk inconsistency or discrimination between people eligible and not eligible for exemptions. • reduce the revenue available for investment in local infrastructure and services. 4.8 While it was noted that respondents did consider it appropriate and sensible that any scheme should align with national exemptions, there was support for the Council to retain flexibility to add local exemptions. Under the Act, if a local authority decides to add an exemption to a visitor levy scheme, this does not require an implementation period, but a consultation and a report on the consultation findings will be required before a decision could be made to add an exemption to an existing scheme. Views on Capping the Number of Nights of Accommodation where a Levy is Paid 4.9 Just over half (52%) of survey respondents agreed with a cap on the number of accommodation nights that a visitor levy should be paid. The results of this question are outlined in Table 4 below. Table 4: Do you think there should be a cap on the number of nights of accommodation that a visitor should pay a levy? Businesses Residents Visitors Overall Yes 59% 49% 61% 52% No 20% 34% 21% 30% Don’t know 21% 17% 17% 18% Source: Argyll and Bute Council Surveys Base = 289 (businesses); 1,180 (residents); 243 (visitors); Overall (1,712). Note: Respondents who selected ‘Don’t know’ or ‘I don’t support a levy being introduced across Argyll and Bute’ to that question, as noted in Table 1 above, were not asked this question. 4.10 Almost half (48%) either said there should not be a cap or where unsure, reasons for this included: • To simplify the administration of a visitor levy scheme. • To avoid any confusion for visitors and accommodation providers. • Visitors use amenities for the whole of their visit. • It could be a fairer approach for accommodation providers of all sizes. • No cap would unlikely deter visitors as many are short term stays. 4.11 Survey respondents for each survey provided a range for the number of nights after which a cap should apply as follows: • Businesses: one night to 14 nights. Predominantly at the low end of this range. • Residents: one night to 30 nights. Mainly at the lower end of this range (seven nights was mentioned most frequently). • Visitors: one night to 30 nights. Mainly at the lower end of this range (most suggested between one and three nights). Estimated Visitor Levy Cost Benefit Analysis 4.12 Chapter 6 of the appended report provides a detailed analysis of a range of possible economic impacts (estimated direct and indirect costs and benefits) on the accommodation sector and wider visitor economy across Argyll and Bute if a visitor
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levy scheme was introduced. The analysis focused on three main areas of uncertainty: • the costs of setting up and administering the scheme. • the impact that the levy might have on the number of visitors and expenditure in the region. • the extent to which the reinvestment of levy monies will create positive economic benefit for the visitor economy sector. 4.13 Terms (metrics) used for the cost benefit analysis are as follows: • Net Present Value (NPV) – tells you how much an investment is worth today, based on the future money it will earn adjusted for risk and time. • Benefit to Cost Ratio (BCR) – is the ratio of the present value of total benefits to the present value of total costs. A ratio > 1 means the benefits exceed costs making it a good investment. 4.14 The financial and economic appraisal work is based on the following assumptions: • The levy is charged at 5%, all price increases are passed on to the consumer, no exemptions, no remitted funds back to accommodation businesses. • All available funding (net of set up and ongoing administration costs) is invested back into the visitor economy under the broad themes as outlined in the Visitor Levy (Scotland) Bill. • Price Elasticity Demand of between a low-end value of -0.2 (least price sensitive response) and a high-end value of -1.50 (most price sensitive response) with a mid-range of -0.85. This is the relationship between the change in demand further to a change in the price. • Investment impact representing the potential effect of levy-funded public sector investment by Argyll and Bute to support the visitor economy. Four values 4%, 2%, 1% and 0%. • The mid-point set up and administration costs scenarios are assumed as a constant to understand the change in visitor behaviour and the impact of investment in the visitor economy from the visitor levy. 4.15 The financial and economic appraisals have been carried out at the local authority level. Ideally the assessment would include separate appraisals to better understand the potential implications for different parts of the region, including island communities. However, there are no data sources sufficiently detailed and robust to support and inform such an analysis. 4.16 The economic impact work has developed several possible scenarios ranging from the most positive (low costs, minimal impact on visitor numbers and high level of benefit from levy reinvestment) to the most negative (high costs, significantly negative impact on visitor numbers and no benefit arising from reinvestment of funds). 4.17 The cost benefit analysis for accommodation sector businesses measures the net present value of the turnover benefit to businesses as a result of public investment in the tourism sector using visitor levy generated funds against the present value direct costs to accommodation businesses and the value of lost turnover due to
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price increases brought on by the levy over the 10-year appraisal period. This analysis represents the aggregate financial impact on the cohort of levy-paying accommodation providers. Results are presented in Table 5 below. Table 5: Accommodation Sector Business Cost Benefits Analysis (£ millions) over the 10- year Appraisal Period up to 2035/36 Scenario Turnover uplift Set up and admin costs Turnover lost Total cost Net present value Benefit- cost ratio Best case £122.9.4 £8.5 £5.2 £13.7 £109.2 8.9 Midpoint £54.3 £8.5 £22.3 £30.8 £23.5 1.8 Worst case £0.0 £8.5 £39.4 £47.9 -£47.9 0.0 Note: Midpoint set-up and admin cost scenarios are assumed as a constant to understand the changes to visitor behaviour (PED) and the impact of investment in the visitor economy from a visitor levy. 4.18 The potential financial benefits for accommodation businesses range significantly from an overall loss of £47.9 million to a net gain of £109.2 million over 10 years. However, the mid-point scenario suggests a net gain of £23.5 million over the 10 years. If investment can support at least a 2% annual uplift in tourism sector activity, it is estimated that under any PED scenario and cost scenario that has been modelled, the levy may generate a positive impact on accommodation sector turnover/income. This will be dependent on the investment and time taken to realise an annual uplift in tourism activity. 4.19 The socioeconomic cost benefit analysis measures the present value of the net additional Gross Value Added (GVA) retained in Argyll and Bute as a result of investment of visitor levy generated funds against the present value of the direct costs to the Council plus the direct costs to accommodation business over the 10- year appraisal period. This analysis assesses the overall economic impact generated within the wider Argyll and Bute economy as a result of implementing the levy. Results are presented in Table 6. Table 6: Socioeconomic Cost Benefit Analysis (£ millions) over the 10-year Appraisal Period up to 2035/36 Scenario Net additional GVA Council cost of set up and admin Business cost of set up and admin Total cost Net present value Benefit- cost ratio Best case £173.1 £10.0 £8.5 £18.5 £154.6 9.3 midpoint £47.0 £10.0 £8.5 £18.5 £28.5 2.5 Worst case -£57.9 £10.0 £8.5 £18.5 -£76.5 -3.1 Note: Midpoint set-up and admin cost scenarios are assumed as a constant to understand the changes to visitor behaviour (PED) and the impact of investment in the visitor economy from a visitor levy. 4.20 The potential economic benefits (net additional GVA) for Argyll and Bute range significantly from an overall loss of £76.5 million to a net gain of £154.6 million over ten years. The mid-point is a positive Net Present Value of £28.5 million. 4.21 There was a strong call for more detailed proposals and plans from the Council on how the revenue generated would be spent. For example, further clarity and detail was said to be needed on: • The proportionate funding split across the proposed objectives. • Whether it could comprise revenue and capital funding. • How funding would be allocated across Argyll and Bute.
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4.22 It is important to note that the cost benefit analysis provides insight into the impacts that a visitor levy may have; it does not determine which scenario is more likely to occur. From the analysis financial issues are outlined in Table 7 below for Argyll and Bute Council and for the Accommodation Businesses Table 7: Estimated Financial Consequences from a 5% Visitor Levy Impact on Argyll and Bute Council Impact on Accommodation Businesses • For midpoint set-up and administration costs, it is estimated that Argyll and Bute Council could generate net tax revenue over a 10- year period between £59.9 million to £67.7 million at present values (£9.2 million to £11.8 million per annum by 2034/35) from a visitor levy significantly in excess of its expenditure in implementing and administrating a levy. • In short, it is estimated that over a 10-year period, the Council could generate between £6.10 and £6.90 in tax revenue for every £1 of costs. • Across all 36 scenarios for the net additional Gross Value Added (GVA) retained in Argyll and Bute, there are 19 where a visitor levy generates a positive NPV and a BCR greater than 1. • The analysis suggests that from a purely financial perspective, a visitor levy is likely to have a positive impact for investment available for the visitor economy, which could enhance the appeal of what Argyll and Bute offers visitors to keep the area competitive and keep visitors choosing to visit the area. A local Visitor Levy Forum would guide how income was spent • Consequently, this would be a significant loss in potential revenue generation if a visitor levy scheme was not introduced. • When including the low and high set- up and administration costs scenarios, there is a total of 36 modelled scenarios for the net additional Gross Value Added (GVA) retained in Argyll and Bute. For 17 of these scenarios a visitor levy generates a negative NPV and a BCR less than 1. • The analysis presents accommodation and overnight visitor economy businesses in aggregate and the potential turnover losses and gains are assessed on a sectoral basis. It is possible that turnover losses due to the levy may be unevenly distributed across the region. This could have significant impacts on specific businesses and may result in closure of businesses who are particularly impacted. Similarly. business may be differentially impacted by investment in the sector and the potential benefits may not be evenly felt across the region. • The cost benefit analysis estimates that the impact of levy funded investment in the tourism sector will need to support a 2% annual uplift in visitor economic activity per annum. The model is highly dependent on the investment and time taken to realise an annual uplift in tourism activity.
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4.23 In addition, council officers have referred to the findings in the consultation report to undertake a detailed integrated impact assessment where consideration has been given to Fairer Scotland Duty; Equalities (protected characteristics), Consumer Duty, Island Communities and Children’s Rights and Wellbeing. The integrated impact assessment is outlined in Appendix 2 to this report. Alternative Funding for the Visitor Economy and Legislative Issues 4.24 The online surveys sought views on alternative means by which Argyll and Bute Council could raise funds to support the visitor economy infrastructure and services rather than through a visitor levy. 4.25 One particular issue, which was again highlighted by the detailed business case studies in Appendix E in the appended report, was the complexity of a percentage- based model rather than a flat rate which could offer more simplicity and fairness to raise revenue for the visitor economy. It is not, however, within the gift of the Council to apply a flat rate as the legislation, as it stands, requires a percentage rate to be applied. Argyll and Bute Council financial perspective 4.26 It is clear from the findings that there is limited support for the introduction of a visitor levy scheme as proposed for Argyll and Bute across businesses, residents and visitors who responded to the survey. That said, to put this in context, it should be noted that the response rate from the residents survey (2,061) is only 2.7% of the resident population, aged 15+ (2,061 out of 76,271 using age cohorts presented by the National Records of Scotland, NRS) who were interested in responding to this scheme policy; 97.3% of the resident population 15+ years did not respond. 4.27 Independent research by EKOS, informed by current industry data, identifies that Argyll and Bute Council could potentially generate net tax revenue over a 10-year period between £59.9 million to £67.7 million at present values. In other words, £9.2 million to £11.8 million per annum by 2034/35. Given current, and forecasted financial challenges, facing the Council this is a significant amount of income that could be a real difference to sustain the public services we provide and the ability of the Council to support the further development of the tourist economy across the whole Council area. 4.28 Scotland’s local authorities are operating in a time of acute financial pressure. In the absence of additional revenue from a visitor levy, the Council may have no other choice but to make difficult budgetary decisions – many of which could affect essential services that currently support the quality of life for residents and enhance the experience of visitors. Some of the services, which could be regarded as tourism related, that the Council may have to consider reducing or stopping without an additional income stream like the visitor levy are as follows: • Provision of public toilets – this is non-statutory service that the Council does not receive any funding for. • Support of strategic events and festivals. • Maintenance of public parks and gardens.
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• Floral displays and green infrastructure. • Swimming pools and sports centres (currently run by ALEO Live Argyll). • Reduced hours or closure of libraries (currently run by ALEO Live Argyll). • Subsidies for low demand bus routes. • Reduced support for Council and community led tourism projects. • Grants to tourism organisations like Argyll and the Isles Tourism Co-operative. • Further reduction to general waste collection and management. It should be noted that the above list of Council services is not considered to be an exhaustive list. 4.29 In addition to the reduction, or loss of public facing services, there could be a lost opportunity to invest in our local tourism industry and the infrastructure it currently relies on such as our roads, ferries and ports, resulting in existing assets degrading over time, reducing visitor satisfaction and harming local reputation. Options for consideration 4.30 The consultation report prepared by EKOS Ltd is attached as Appendix 1 in full. It is now for the Council to consider whether to proceed with a visitor levy, or not. 4.31 The minutes of the discussion at the Visitor Levy Short Life Working Group on 15th September 2025, where the Shadow Visitor Levy Forum members were invited to attend to share their reflections on the consultation report, are outlined in Appendix 3. 4.32 COSLA wrote to all council Chief Executives on 16th September 2025 to advise that there will be no amendments to the Visitor Levy (Scotland) Act 2024 agreed during the life of this parliament. There may be an opportunity to revisit the visitor levy legislation after a new Scottish Government is formed in May 2026, however, there are no guarantees that this will be prioritised by a future Government. 4.33 Officers are recommending that there are three options for the Council to consider: Option 1: not to introduce a Visitor Levy Scheme across Argyll and Bute, noting the positive and negative medium to longer term consequences of this option. Option 2: to agree to introduce a Visitor Levy Scheme across Argyll and Bute, agreeing a percentage rate, whether to apply a cap and the position of local exemptions to support the long-term future of the visitor economy through financial investment from the Council. If a scheme is agreed, the 18-month lead in period would begin and implementation would be from 1st April 2027. It is suggested that with this option the scheme could be reviewed after one year of implementation. Option 3: to pause the implementation of the scheme to allow the Council to use the evidence collected in the appended consultation report to inform further work by officers, including: (1) Further consideration as to whether to apply a cap, or not;
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(2) Consideration of the possibility of local exemptions to support the long-term future of the visitor economy through financial investment from the Council; (3) Supporting Members to lobby both the Scottish and UK Governments on the key concerns raised, specifically the use of a flat rate versus a percentage rate and the concerns over the VAT threshold. In light of the advice outlined in paragraph 4.32, a report is to be brought back no later than Council in September 2026 to advise of progress on the points noted above, and specifically the position of the Scottish Government in regard to revisiting the Visitor Levy Legislation. It should be noted that should this option be accepted, and the Council decide to progress with a visitor levy scheme after this time, it is likely that any revenue collection would not be possible until the financial year 2028/2029 at the earliest. 5.0 CONCLUSION 5.1 This report presents the full findings of an independent analysis of responses to the Argyll and Bute Council consultation on draft proposals for the introduction of a visitor levy scheme. These findings have been prepared by EKOS taking into account the latest tourism data and are presented in full as Appendix 1 of this report. Whilst the survey results reveal a minority support for the levy as currently presented the further analysis contained within the EKOS report conforms a potentially significant net tax revenue benefit (£9.2 million to £11.8 million annually by 2034/35) for the Council over the next decade. This is highly significant given the Council’s current and forecasted financial challenges to both sustain public services and to further support the future growth of the local tourism industry. Consequently, the report presents three options for Council to consider. 6.0 IMPLICATIONS 6.1 Policy – the visitor level scheme proposals are based on turning key investment into benefit for visitors, residents and businesses through the tourism priorities set out in the Argyll and the Isles Strategic Tourism Partnership’s Strategy 2022-2025. 6.2 Financial – the visitor levy scheme offers one of the few opportunities that the Council has to raise additional income at a local level other than the council tax. The EKOS report attached as Appendix 1 is estimated to generate an income stream for the Council, where tax revenue receipts could be in excess of costs to fund investment in the sector each year in which the levy is in effect. The current estimate is between £9.2 million to £11.8 million per annum by 2034/35. 6.3 Legal – visitor levy schemes need to adhere to The Visitor Levy (Scotland) Act 2024 and the supporting Visitor Levy Guidance document produced by VisitScotland on behalf of the Scottish Government. 6.4 HR – this current work is managed by a study Steering Group comprised of members of the Council’s internal Visitor Levy Officers’ Working Group and supported by ELT.
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6.5 Customer Service – none. 6.6 Risk – the introduction of visitor levy for accommodation businesses has the potential risk that higher prices may discourage some visitors from choosing Argyll and Bute, reducing demand. Conversely, there is a risk that an opportunity is missed, if revenue from a levy enables Council investment that enhances the visitor economy, attracting visitors and improving the overall visitor experience. It should also be noted that three councils have already approved the introduction of a levy, and others are currently considering it. Councils that can access the revenue stream of a levy will be able to better support the growth of their local tourism economy. 6.7 Climate Change – none directly arising from this report. 6.8 Fairer Scotland Duty - the Fairer Scotland Duty, Part 1 of the Equality Act 2010, came into force in April 2018. The duty places a legal responsibility on particular public bodies in Scotland, such as Argyll and Bute Council, to pay due regard to (actively consider) how they can reduce inequalities of outcome, caused by socio- economic disadvantage, when making strategic decisions and how this has been implemented. This has been considered as part of the integrated impact assessment outlined in Appendix 2. 6.9 Equalities (protected characteristics) - all activities will comply with all Equal Opportunities policies and obligations. This has been considered as part of the integrated impact assessment outlined in Appendix 2. 6.10 Consumer Duty - all activities will comply with the Council’s Consumer Duty. This has been considered as part of the integrated impact assessment outlined in Appendix 2. 6.11 Island Communities – the visitor levy proposals that were out for consultation covered the whole of the Argyll and Bute Council area, which included all island communities. This has been considered as part of the integrated impact assessment outlined in Appendix 2. 6.12 Children’s Rights and Wellbeing – no direct impact was considered as part of the integrated impact assessment outlined in Appendix 2. Kirsty Flanagan, Executive Director responsible for the Visitor Levy Consultation Council Leader: Councillor Jim Lynch 16th September 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Tel: 01546 604293 and e-mail: fergus.murray@argyll-bute.gov.uk Ishabel Bremner, Economic Growth Manager Tel: 01546 604375 and e-mail: ishabel.bremner@argyll-bute.gov.uk
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APPENDICES Appendix 1: Visitor Levy Consultation Report for Argyll and Bute Council – Full Final Report dated 2nd September 2025. Appendix 2: Argyll and Bute Council: Integrated Impact Assessment. Appendix 3: Minutes from the Visitor Levy Short Life Working Group, 15th September 2025.