In the week that Edinburgh garnered attention for its plans for councillors to cast votes on establishing a 5% rate on lodging for visitors to the city., Aberdeen City Council is progressing with plans to emulate the capitol by implementing its own tourist tax for the city.
Council chiefs in the granite city are taking a similar approach, with officials considering the potential for the initiative to generate substantial revenue to help the Aberdeen evolve into a premier tourist destination.
Councillor Alex McLellan, convener of the finance and resource committee, has commented: “Aberdeen City Council is currently in the process of developing the visitor levy scheme with key stakeholders ahead of a wider consultation.
“There is the potential for the scheme to raise significant funds to help support our ambition to be a leading visitor destination.
“Our decision around whether or not to introduce a visitor levy will be informed by the consultation as it is important to consider the views of the trade, and a key part of that discussion will be around the rate of any levy, and, if such a levy was introduced, how the council would use it to boost the city’s economy, increase visitor numbers and, in turn, fill hotel rooms.”
The council’s calculations are based on a 1.5% addition to accommodation bills. Julie Wood, the city’s development and regeneration chief, earlier revealed that had this levy been in place in 2023, it would have generated approximately £1.6 million for the council.
The proposed visitor levy has both potential benefits and drawbacks for local businesses:
Positive Outcomes:
- Increased funding for tourism infrastructure and services
- Potential for improved marketing and promotion of Aberdeen as a destination
- Support for international and national events
Negative Outcomes:
- Possible loss of Aberdeen’s affordable edge over competitors in the Central Belt
- Additional administrative burden for accommodation providers
- Risk of deterring price-sensitive visitors
Frank Whitaker, Chairman of the Aberdeen City and Shire Hotels Association, acknowledged the inevitability of the levy but emphasised the importance of proper implementation: “The visitor levy is an inevitability. So, if it’s inevitable, we want to work with Aberdeen and Aberdeenshire councils to ensure the money raised is invested in the visitor economy.”
It is expected that the local authority’s finance and resource committee will review a report in March concerning the proposals for a tourist tax, with a broader consultation period to follow.
This development comes after reports from the BBC stated that councillors in Edinburgh are poised to vote on a tourist tax set at 5% of accommodation costs.
If approved, the initiative would take effect starting in July 2026.
