Aberdeen is pushing ahead with the introduction of the most expensive visitor levy in the country.
The city council has approved the introduction of the proposed 7 per cent tax saying it would bring in £5 per night on an average hotel room.
The plans are now going out for consultation after the local authority’s finance and resources committee greenlighted the move which excludes cruise ships and motor homes.
Should they be approved, the scheme would come into effect from April 1, 2027 at the earliest.
Committee convener, Cllr Alex McLellan, said: ‘Our decision around whether or not to introduce a visitor levy will be informed by the consultation as it is important to consider the views of the trade, and a key part of that discussion will be around how the council could use the funds to boost the city’s economy, increase visitor numbers, and, in turn, fill hotel rooms.’
Edinburgh will start charging 5 per cent levy from July next year while Glasgow City Council and Highland Council are consulting a tax at the same level.
Councillors have agreed to launch talks on the scheme, giving residents and local businesses the change to have their say on it.
The Visitor Levy (Scotland) Bill was passed in May last year, allowing councils across the country to charge a fee or tax on overnight stays.
Many in the tourist trade have pleaded with the council to hold off on its imposing the levy, claiming the scheme has been rushed through and will prove a nightmare for the industry, which has to administer the tax.
They suggest it may even be illegal in its present form and could face costly legal challenges before it turns a single penny of revenue.
In particular, critics fear that smaller businesses – still reeling from the impacts of Covid, a cost of living crisis, and the Short Term Lettings Licence (STLL) scheme – will be left drowning in red tape. Some may simply decide to throw in the towel.
However those in support of the bill believe it would help Aberdeen become a ‘leading visitor destination’ and enable it to compete with other cities across the world.
The tax would apply to all overnight accommodation in the city including hotels, hostels, guest houses, B&Bs and self-catering lets.
Camping sites and caravan parks would also charge the levy fee.