Tourist tax Scotland: Aberdeen bosses 'gambling' over plan to introduce one of Europe's highest levies

Council bosses in Aberdeen are being warned their proposals to introduce one of the highest tourist taxes in Europe is gambling with the city’s future.

Aberdeen City Council is considering proposals to introduce a 7 per cent visitor levy, which they hope can generate millions of pounds.

Should this proposal be accepted, it could see visitors to the city paying more than they would to stay in major European cities such as Barcelona, Rome, Prague and Budapest.

The peloton make their way through Aberdeen's Union Street during stage one of the AJ Bell Tour of Britain. Picture: PA | PA

The Federation of Small Businesses said the city council was gambling with Aberdeen’s ambitions to establish itself as a tourist destination.

Mike Duncan, the federation’s development manager for north Scotland, said: “A 7 per cent levy would be the most expensive so far proposed in Scotland and one of the very highest in Europe.

“Apart from the actual cost of the levy, Aberdeen needs to consider the perception this will create among potential visitors and whether this will put people off coming.

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“The city quite rightly has ambitions to grow its visitor economy, but adopting a visitor levy at such a high rate represents a gamble with those ambitions.”

Mr Duncan pointed to an impact assessment commissioned by the Welsh Government, which suggested visitor levies could reduce tourist numbers by up to 2.5 per cent. The assessment said this would cut visitor spending by as much as £35 million a year.

“So-called tourist taxes might be common in major destinations around the world, but there is research to suggest some such charges may deter visitors and negatively affect the local economy,” Mr Duncan said.

“Accommodation providers we spoke to are concerned that might happen here.”

Edinburgh and Glasgow have both agreed to introduce a 5 per cent tourist tax, and others such as Highland Council are considering following suit.

However, other local authorities such as South Ayrshire and the Western Isles have paused their plans to introduce such a levy over concerns about the impact it would have on the local tourist economy.

The federation is now calling for a “full Aberdeen-specific economic impact assessment”, including researching the impact of a lower charge, to be carried out to understand the potential impact it could have on the city.

Mr Duncan said: “It is crucial to appreciate one size most certainly does not fit all. What works in Glasgow, Edinburgh, Amsterdam or Berlin, for example, might be very different to what works for Aberdeen.

READ MORE: Tourist tax Scotland: Why levy will 'put off' visitors from travelling to rural Scotland

“That is particularly true when the neighbouring and nearby local authorities have yet to introduce a charge, and any local levy could place Aberdeen at a competitive disadvantage.”

Should the city council introduce a tourist tax, the levy would come into effect on April 1, 2027.

Aberdeen City Council was contacted for comment.