South Ayrshire: The Scottish council, that covers Trump Turnberry, that has shelved tourist tax plans

South Ayrshire Council has shelved plans for a new tourist tax for at least the next two years following a backlash from residents and businesses.

Tourism accounts for a significant part of South Ayrshire’s industry and, with council finances under severe strain, was considered a potentially fruitful way to increase income.

A general view of the Trump Turnberry hotel in South Ayrshire. | PA

Similar levies, which charge for overnight stays, have been introduced across the country, most facing significant opposition.

The feedback in South Ayrshire, which includes some of the country’s leading golf resorts including Trump Turnberry and Troon, echoed a lack of appetite for the move. Almost 80 per cent of more than 500 responses opposing the idea to a greater or lesser extent. Just 15 per cent were in favour.

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The decision to shelve plans was agreed at a South Ayrshire Council meeting on Tuesday following a 12-week public consultation.

The City of Edinburgh also faced opposition, but opted to go ahead with the scheme. Glasgow councillors will vote on the city’s own tourist tax on Thursday.

Councillors in Edinburgh have backed an 8 per cent hike | Getty Images/iStockphoto

South Ayrshire’s consultation, which ran from February to May, attracted more than 500 responses, with most submissions coming from residents and local accommodation providers. Accommodation providers voiced particular concern, with over 90 per cent opposing the plan.

Many warned the levy would damage an already fragile tourism sector, potentially deterring visitors and increasing financial pressure on small businesses.

One respondent wrote: “I don’t believe that Ayrshire is attractive enough as a destination to warrant a tourist tax/levy. I can see how this works in very popular places like Barcelona or Athens.”

Others questioned the timing and necessity, noting the region’s competitive disadvantage if neighbouring authorities choose not to implement similar levies.

The Federation of Small Businesses (FSB) and the Association of Scotland’s Self-Caterers (ASSC) both submitted formal objections.

The FSB indicated that it was not wholly opposed to the concept, instead urging caution. The business organisation requested an economic impact assessment and warned that any scheme must be fair and not place undue burdens on small operators.

The FSB pointed out the impact could be exacerbated by the lack of a levy in neighbouring authorities.

The report stated the FSB highlighted the risk that since South Ayrshire’s neighbouring local authorities had no plans to introduce a visitor levy at the moment, accommodation in the area would be less price-competitive, and that might put it at a disadvantage when businesses and workers looked at the price gaps across the area.

There were also concerns the levy could be used for street cleaning and bin collections.

The report stated: “They view these as existing core council services that businesses should already expect in return for their taxes.

“If the council did implement a visitor levy, the FSB view is that revenues must be used to develop, support and sustain facilities and services for or used by visitors to a local authority area for leisure or business purposes.”

The ASSC was more direct, opposing the levy outright and citing recent regulatory pressures on self-catering businesses, particularly around short-term let licensing.

Officers reviewed the survey findings, along with developments in other areas, and had recommended dropping the project from its transformation programme and not considering development until August 2027 at the earliest.

This delay, they said, would allow time to assess how the levy affects other regions and whether such a scheme could be viable – or desirable – in South Ayrshire.