Aberdeen City Council has approved plans to introduce a Visitor Levy, aimed at generating revenue to support the city’s leisure and business tourism sectors. The levy, set at 7%, would apply to overnight stays in hotels and other forms of accommodation. With the average room rate currently around £70 per night, visitors could expect to pay an additional £4.90 on top of their accommodation costs.
The council anticipates the measure could raise up to £6.8 million annually once introduced, with the earliest implementation date set for 1 April 2027. The revenue is expected to be directed into a range of cultural, sporting, and events-based initiatives designed to enhance Aberdeen’s appeal to both leisure travellers and conference organisers.
Councillor Alex McLellan, Convener of the Finance and Resources Committee, said: “The income generated from the visitor levy, paid by those visiting the city, will provide a huge boost to our local economy and allow us to invest in bringing major events and conferences here on a more regular basis.
“Across Europe, we are paying similar amounts to stay per night subsidising their thriving economies, and we should do the same to ensure we can compete in terms of attracting both business and leisure tourism to Aberdeen.”
However, the decision has sparked a mixed reaction among business leaders and industry representatives, with concerns raised about the impact on already stretched hospitality operators.
Scottish Conservative North East MSP Liam Kerr criticised the decision, calling it “the latest crippling blow for struggling city businesses”.
“Suffering traders are already being hammered by the SNP council’s ludicrous imposition of LEZs and bus gates across the city,” he said. “Now our renowned businesses must also contend with Aberdeen having the highest levy in Scotland as they battle for survival.
“Rather than addressing the underfunding of councils, the Scottish Government’s push for local authorities to do this is endangering our hospitality sector which is crucial to Aberdeen’s economy. I believe a visitor levy could put off people coming to our great city which is why I am firmly against these proposals.”
Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers, also voiced strong opposition. “The decision by Aberdeen City Council to approve Scotland’s highest visitor levy – without guaranteeing full cost recovery for accommodation providers – is nothing short of economic madness. It demonstrates a worrying disconnect between policy ambition and operational reality,” she said.
“Let me be clear: accommodation businesses are not the Council’s tax collectors. They are small and micro businesses operating in one of the most volatile and over-regulated environments in recent memory. To impose a high flat-rate levy (7%) while ignoring the very real costs associated with administering it – including third-party commissions now charged on the levy portion of nightly rates — is entirely unsustainable.”
Campbell added that recent data from July 2025 already points to weakening demand and reduced occupancy in urban centres like Aberdeen, warning that further financial pressure could accelerate that decline.
Despite the criticism, some industry leaders have expressed cautious support for the levy – if implemented thoughtfully. Stephen Gow, Chair of VisitAberdeenshire, said: “A well-managed scheme that supports the aims of the region’s Destination Strategy will drive continued growth of Aberdeen’s visitor economy. Aberdeen welcomed 2.2 million overnight visits in 2024, contributing to an economic impact from tourism of over £500 million.”
The funds raised through the levy are expected to support a variety of initiatives, including a new Convention Bureau-managed fund to attract major conferences, enhancements to events at the P&J Live arena, cultural programming, and investment in local talent and creative industries.
Under the Visitor Levy (Scotland) Bill, local authorities have discretion to determine the levy rate, set different rates for specific events or districts, and adjust the timing and scope of its application. However, the types of accommodation the levy applies to – including hotels, B&Bs, guest houses, self-catering properties, campsites, and hostels – are mandated by national legislation.
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Cruise ships and motorhomes will not be subject to the levy, and exemptions apply for individuals staying in accommodation as part of disability-related benefits or support.
While Aberdeen City Council says the levy will strengthen its tourism offering, the coming months are likely to see continued debate over how to implement the policy in a way that balances revenue generation with the realities facing the hospitality industry.
