Aberdeen city council considers 7 per cent 'tourist tax'

The city of Aberdeen council is to consider introducing a 7 per cent “tourist tax” in a meeting next week.

The visitor levy allows councils in Scotland to charge a fee or tax for overnight stays in hotels, bed and breakfasts, and other types of accommodation.

Aberdeen appears to have the highest proposed tourist tax figure compared to other council areas considering the move.

Plans for a proposed 7% "tourist tax" in Aberdeen will be considered by councillors next week.

A 5 per cent tax for Edinburgh was agreed by councillors last month. Glasgow has recently begun a consultation on a levy at the same percentage.

Highland Council’s proposal for a 5 per cent visitor levy for the region is also under consultation until the end of March.

The news comes as a study from the Federation of Small Businesses (FSB) in Scotland revealed 21 out of 32 Scottish local authorities have been either discussing the idea or are actively pursuing plans to introduce a local levy.

When it published the results, the FSB warned councils must work with small accommodation providers as they develop their plans.

Aberdeenshire Council said it is in the “very early stages”, and that councillors have agreed to investigate what the implications of a tourist tax could be.

Perth and Kinross Council confirmed it is due to start a public consultation next week to see whether people want to see it introduced at all.

Moray Council said it will decide on whether to start the process or not later this month.

Orkney Islands Council, Shetland Islands Council and Comhairle nan Eilean Siar appointed a consultant last week to investigate the feasibility of a visitor levy scheme for each of the island's authorities.

Meanwhile North Lanarkshire said it is considering the feasibility of the levy before any decision on a consultation going ahead. South Ayrshire council said any consultation on the tourist tax would only come after a survey with the region’s residents and businesses about the idea.

Argyll and Bute Council has given its residents until April to give their opinions on a visitor levy for the region before they consider the idea.

A report going before Aberdeen City Council's finance committee asks councillors to approve a consultation on the proposed 7 per cent levy, which would result in an estimated average increase of about £5 per night for visitors.

The earliest date the tax could be introduced in Aberdeen would be April 2027.

A spokesperson for the council said they would be unable to comment ahead of the meeting next Wednesday.

David Weston, of the Scottish Bed and Breakfast Association, said he had concerns about the potential impact of such a levy on visitor numbers.

Of the 7 per cent figure, he told BBC Scotland News: "I'm astonished, because Aberdeen does not suffer from over tourism.

"They're not looking at all at the dangers to tourism and the damage that would to do to tourism, to Aberdeen, which would have a wider impact across the whole of the economy."

Andrew McRae, FSB Scotland’s policy chair, said small businesses will play a key role in implementing and operating any local visitor levies introduced across Scotland, but warned that without the central IT and accounts of the big hotel chains, guesthouses and B&Bs will be disproportionately impacted.

He said there are “lots of unanswered questions” at this stage about how exactly the schemes will work and that it would be wrong to assume just because there are ‘tourist taxes’ operating around the world, that any scheme will automatically work effectively in a particular local authority area in Scotland.