SNP MSP Fergus Ewing has launched a scathing attack on Highland Council’s proposed 5% visitor levy, warning it could be the “death knell” for many local businesses and labelling the scheme “outrageous and poorly designed”.
During a debate in the Scottish Parliament, the Inverness and Nairn MSP reiterated his longstanding opposition to the tourist tax, which stems from the Visitor Levy (Scotland) Act passed last year. The Act gives local authorities the power to apply a charge on overnight stays – a move Highland Council estimates could raise at least £10 million annually to support infrastructure, such as road improvements.
But Ewing told Public Finance Minister Ivan McKee that the tax was “uncollectable”, lacked the systems needed to implement it, and would ultimately damage the region’s economy.
“It is a percentage tax upon which there will be additional VAT payable – two sets of tax,” Ewing said.
“This may cause the death knell of many hard-working, excellent bed and breakfast establishments in the Highlands and throughout the whole country.”
He urged ministers to halt what he described as a “fiasco in the making”.
In response, McKee stressed that implementing the visitor levy was a matter for each local authority, adding that Edinburgh City Council would be the first to roll it out next year. He confirmed he would meet with Highland Council to discuss their plans further.
“The levy will help sustain and enhance the visitor experience, making destinations more attractive and competitive,” McKee said.
“Many businesses and business organisations absolutely recognise the value that the levy can bring.”
Highland Council’s draft proposal has been met with resistance from local chambers of commerce and tourism trade bodies, who argue the measure could deter overnight stays and damage small hospitality operators.
Conservative MSP Douglas Ross also criticised the plans, noting that Highland residents themselves may be charged when staying in other parts of the region. He called for a resident exemption to be included from the outset.
The council has concluded its public consultation on the levy, with Council Convener Bill Lobban stating:
“The council will now take time to fully consider all responses received.”
Despite the opposition, the Scottish Government maintains that the legislation grants councils significant new fiscal powers – the most substantial since devolution – and that how those powers are used remains a local decision.
