Glasgow told to ignore 'Paris affect' and slash 5% tourist tax plans

Glasgow has been urged by a leading business group to slash the rate of a proposed 5 per cent tourist tax.

The local authority is holding a consultation over introducing the 5 per cent levy on overnight stays in the city. A potential date for introduction is yet to be announced, although the earliest would be 2027.

People carrying shopping bags on Buchanan Street in Glasgow's city centre. Picture: John Linton/PA Wire

The Federation of Small Businesses (FSB) has raised concerns with the council over the potential impact of the tax on the city's tourism industry, particularly on small accommodation providers. The business group wants the council to examine lower rates.

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The plans for Glasgow have been put forward after Edinburgh City Council approved Scotland’s first tourist tax.

Looking out across Edinburgh from Calton Hill | Adobe

The Scottish capital’s 5 per cent levy will be enforced from July 2026, and will apply to stays at hotels, hostels, guest houses, B&Bs and self-catering accommodation.

Hisashi Kuboyama, FSB Scotland’s development manager for Glasgow and the west of Scotland, said: "If it is implemented carefully, the visitor levy has the potential to deliver real benefits for Glasgow. It could provide vital, distinct investment to enhance the city as a destination, support the tourism sector, and strengthen the wider economy and community.

"However, while visitor levies are common in major tourist destinations globally, some research suggests such charges could negatively affect tourism and the local economy. Accommodation providers we spoke to are also concerned about its potentially negative impact.

“It is important to appreciate there is no ‘one-size-fits-all’ approach that guarantees success in every location. What works in Paris, Barcelona or Edinburgh, for example, might not necessarily work in Glasgow."

FSB Scotland has pointed to an impact assessment commissioned by the Welsh Government, which found a visitor levy could reduce tourist numbers by up to 2.5 per cent. The business body is also calling for a cap on the number of nights the levy is charged.

A Glasgow City Council spokeswoman said: “A public consultation has been running for the last 12 weeks where interested parties can share their views.

“The city levy is designed to not only support, but grow Glasgow’s tourist and visitor industries, while also delivering benefits for citizens. It is to be expected that there will be a range of views on the potential introduction of a levy – and that is exactly why the consultation is such an important part of the process.

“However, it is also important to recognise that the council has already carried out significant additional engagement with the trade and other stakeholders, which has shaped the current proposals.”