Visitor levy changes to give ‘even more flexibility’ to scheme, minister says

New legislation will give Scotland’s councils “even more flexibility” if they opt to introduce a charge on overnight stays, a minister has said.

The Scottish Government has published the Visitor Levy (Amendment) (Scotland) Bill, which if passed will allow councils to bring in a levy as a flat-rate charge, instead of as a percentage of accommodation costs.

It comes after Holyrood passed legislation in 2024 giving councils for the first time the ability to introduce a charge on overnight stays in hotels, B&Bs, holiday flats and cottages, and other forms of tourist accommodation.

Various local authorities, including Edinburgh City Council, are now set to bring in such a scheme – but as its stands the levy has to be set as a percentage of the cost of an overnight stay.

The Scottish Government hopes its new Bill to change this, and allow councils to charge a flat rate, can be passed by MSPs ahead of May’s Holyrood election.

The Bill would also allow councils to vary the levy for different areas, different times of year and for different types of accommodation.

Public finance minister Ivan McKee said: “When we introduced the original visitor levy legislation, we wanted to empower councils to implement a scheme that was right for their areas and easy to understand for local businesses.

“We worked closely with councils and tourism bodies when the original legislation was considered and passed by Parliament.

“These new proposals will give councils even more flexibility and provide clarity to businesses.

“We want to ensure visitor levies are an effective option for councils who choose to introduce them to boost investment in local economies and services.”

The Bill also sets out to clarify how levies are applied to accommodation booked through a third party, such as travel agents.