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Aberdeen City Council’s Finance and Resources Committee has approved a public consultation for a potential visitor levy scheme in Aberdeen which would raise revenue to be used for improvements for the visitor economy in the city
The report to committee said if The Visitor Levy (Scotland) Bill goes ahead, the absolute earliest a visitor levy scheme can come into effect in Aberdeen is 1 April 2027.
For public consultation, a rate of 7% is proposed which would produce a levy of £5 per night on an average hotel room of £70 a night.
The Visitor Levy (Scotland) Bill allows local authorities in Scotland to charge a fee or tax on overnight stays in some types of accommodation.
The levy would be calculated as a percentage of the chargeable transaction for accommodation, after deducting any commission costs.
The main purpose of the bill is to invest more in the local economy in ways that will benefit business and leisure visitors as well as residents.
The local authority has the discretion to set what the rate is and the legislation allows for local authorities to set different rates for different purposes or areas meaning that different rates can be set for particular events, such as arts festivals or special conferences and that local authorities can vary the area in which the levy applies within their boundary.
Additionally, local authorities cannot vary the type of accommodation that the levy would apply to and that includes hotels, bed and breakfasts, hostels, guest houses, self-catering accommodation, camping sites, caravan parks, accommodation in a vehicle, or on board a vessel which is permanently or predominantly situated in one place.
Alex McLellan, Convener of Finance and Resources councillor, said: “Aberdeen City Council has developed the visitor levy scheme with key stakeholders which will now go out to 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 how the council could use the funds to boost the city’s economy, increase visitor numbers, and, in turn, fill hotel rooms.”
Frank Whitaker, chair of the Aberdeen City and Shire Hotels Association, added: “It is fair to say that the hotel sector lobbied hard against legislation for a visitor levy. However, the law now enables local authorities across Scotland to implement a visitor levy, so it is incumbent on industry to work with local authorities to develop effective schemes that support local economic growth.
“The introduction of a visitor levy scheme in Aberdeen City has the potential to be a positive economic growth lever if correctly invested, benefitting not just all types of visitors to Aberdeen but also local residents.”
