Visitor Levy Scheme
Visitor Levy Scheme Stirling Council
Introduction
In May 2024, the Scottish Parliament passed the Visitor Levy (Scotland) Act. This Act gives local authorities the ability to charge a set percentage on overnight accommodation paid by visitors and tourists. In December 2024, Stirling Council agreed to start a period of public consultation to understand whether and how a visitor levy could be implemented in the region. The results of this engagement will help shape what any visitor levy would look like, and the resulting 'scheme' will be put to Council in December 2025 for a final decision on whether to introduce the levy.
It is estimated the introduction of a one per cent visitor levy in Stirling could generate between £1.5m and £2.3m annually. A five per cent visitor levy could generate between £5m and £7.5m. These figures are subject to revision. All money raised would be reinvested locally on facilities and services that are used by, or substantially for, leisure and business visitors. This includes infrastructure, events and culture, as well as improvements to destinations that enhance the visitor experience. Because residents and visitors use many of the same things, the visitor levy has the potential to improve life for residents as well as visitors.
Have your say
To make sure the proposals for the scheme meet the needs of Stirling's visitors, residents, and businesses - and make life better for everyone in the region - we are asking for your input. In the first phase of engagement, we want to know where you think any funds raised could have the biggest impact; how much you think it would be fair to charge visitors; and what our objectives for tourism in the area should be. The results will inform a draft scheme that sets out the levy’s objectives, timeline, percentage rates and how revenues would be re-invested. We will then host another round of consultation asking what you think of that scheme, and whether the Council should approve it and implement a levy.
The first engagement period will be open from 3 March to 2025 and will involve an online survey (paper copies are also available in Stirling Council libraries and can also be downloaded here) and a series of in-person drop-in sessions have been arranged.
Details of the drop-in sessions:
- Friday 14 March, Albert Halls in Stirling, 11am to 6pm
- Tuesday 18 March, McLaren Hall in Killin, 11am to 6pm
- Wednesday 9 April, Callander Youth Project, 11am to 6pm
- Wednesday 16 April, Drymen Village Hall, 11am to 6pm.
Between May and July, we will analyse everything that we’ve been told during this period, and use the findings to draft a proposed scheme for the area.
The formal draft scheme consultation will take place between mid-July and early October 2025. The results from this statutory consultation will then be analysed and taken to Councillors in December 2025. The Council will then decide whether to implement the visitor levy scheme in Stirling.
If the Council approves the visitor levy scheme, there will be a minimum 18-month period before the levy collection begins. The earliest date that Stirling could start collecting a levy is therefore June 2027. If it is approved, the council will use the 18 month implementation period to help accommodation providers understand and set up for the levy, alongside establishing key things like an advisory Visitor Levy Forum and administrative systems to make sure the transition and ongoing management of the scheme goes smoothly.
What is a visitor levy?
A visitor levy is a charge paid by people using paid accommodation. In Scotland, this is a percentage charge. Revenue from the levy has to be invested locally on facilities and services that are for, or used by, tourists.
How much will it be?
There is no limit on how much the levy can be. Other local authorities are proposing a 5% charge. Aberdeen City Council is proposing a 7% charge.
This has not yet been decided for Stirling, and your input to this engagement will shape the decision.
The legislation says that the levy must be charged before VAT.
The table below shows an example of how the visitor levy would be worked out, and how different rates would affect the overall cost.
| Levy Rate | Room cost | VAT (20%) | Total cost |
| No levy | £100 | £20 | £120 |
| 3% | £103 | £20.60 | £123.60 |
| 5% | £105 | £21 | £126 |
| 7% | £107 | £21.40 | £128.40 |
Why can't it be a flat fee?
The legislation states that the visitor levy must be a percentage charge. This means we are not allowed to introduce a flat fee.
Who would pay the levy?
The legislation gives some groups of people automatic exemption from paying the levy. These include those who use overnight accommodation as their only or main residence (for reasons like homelessness, poor housing conditions, experiencing domestic abuse, or being an asylum seeker or refugee). It also includes people who are in receipt of the following:
- Disability living allowance
- Disability allowance
- Attendance allowance
- Pension age disability benefit
- Personal independence payment.
All other exemptions are up to the local authority. These could include carers; ; or people visiting family in care homes or hospitals. The law also says that the rate could be different for different trip purposes, which might include business or work, or visits for medical treatment.
This would require exempt visitors to provide proof of their exemption status to either their accommodation provider (who may not want to ask for sensitive information, and to whom visitors might not want to disclose sensitive information to) or to the local authority, which would require additional staff resource to process and handle. Other local authorities have decided not to include extra exemptions above those listed in the Act, because of concerns about administering them.
This has not yet been decided for Stirling, and your input to this engagement will shape the decision.
It is also up to the local authority to decide how exemptions should be managed. Other local authorities are offering reimbursement for those who are exempt as this means the accommodation provider does not need to ask for sensitive information or process exemptions.
Some of the arguments for and against local exemptions can be seen on pages 26 to 33 of the Scottish Parliament's summary of submissions to the Local Government, Housing and Planning Committee in relation to the Visitor Levy Bill.
When would it apply?
It's up to the local authority to decide whether to apply the levy for the whole year, or only for parts of the year.
This has not yet been decided for Stirling, and your input to this engagement will shape the decision.
When will it start?
If Council approves the introduction of a Visitor Levy it would be subject to a minimum 18-month period of implementation between its announcement and the scheme coming into effect. The earliest it could be introduced would be June 2027.
Where would it apply?
It is up to the local authority to decide whether the levy should apply in the whole area, or only in parts of the area.
This has not yet been decided for Stirling, and your input to the first phase of engagement will shape the decision.
Are any types of accommodation exempt?
The legislation states that the levy cannot vary by accommodation type, so it has to apply to all kinds of accommodation, including hotels, self-catering, and campsites.
How will you make sure the funds are spent on what the scheme says they should be?
When accommodation providers remit money to the local authority, it has to go in a dedicated bank account specifically for the visitor levy. This means it does not go into our general budget, and that it remains ring-fenced.
The objectives for tourism in the region will be set out in the scheme, and these will inform where the money is spent.
The law says that we have to establish a Visitor Levy Forum that acts as an advisory group on the operation of the visitor levy.
How is the money collected and paid?
Accommodation providers will collect the levy when visitors book or pay for their booking. It is up to the authority and/or accommodation providers to decide whether to list the visitor levy as a separate line on visitors' bills (like VAT) or to include it within the room rate or tour price.
The Improvement Service (the national improvement organisation for Local Government in Scotland) is developing a national platform for accommodation providers to use to report and remit the levy to their local authority. When the accommodation provider needs to report their visitor levy income and remit proceeds to the council, they will be able to use the platform to populate the relevant detail, and the platform will then calculate the amount due to the authority.
The frequency of reporting and collection is up to the local authority, and no decision has been made in relation to this for Stirling.
How will you support accommodation providers?
As part of our public engagement, we are engaging directly with accommodation providers and the wider tourism sector to find out what support they would like if the levy is introduced.
The Improvement Service is developing a national reporting platform to help accommodation providers submit returns to their local authority, so that there is a consistent approach across Scotland.
The local authority may also provide other types of support - for example, Glasgow City Council has proposed to allow accommodation providers to retain 1.5% of the levy funds that they collect to help with administrative costs, and Edinburgh Council has proposed retaining 2% of the levy fund to mitigate costs for providers. The first phase of engagement asks about this, and Stirling's proposals will be shaped by your feedback.
Additional resources
We want as many people, businesses and organisations to have their say about Stirling’s draft Visitor Levy Scheme and a range of assets including posters, social media graphics and a paper copy of the survey are available to download to be used freely.
Further information
VisitScotland has produced in-depth guidance on the visitor levy, and regularly updates its web pages with information about what 's happening in local authorities around Scotland. You can access the guidance and other helpful information at this link: Visitor Levy Guidance
Summaries of responses to the national consultation about the levy can be found on the Scottish Parliament webpages about the Bill under the 'Stage 1: general principles' section.