Scotland’s tourism and hospitality leaders have called on the Scottish Government to scrap the percentage-based visitor levy model, warning that it is “operationally impossible”.
They want the government to replace it with a flat rate per night levy which works in places such as Amsterdam, Barcelona, Vienna and soon in Wales.
The Scottish Tourism Alliance (STA) and the Association of Scotland’s Self-Caterers (ASSC), supported by a broad coalition of industry bodies, want the Scottish Government to make the change through an Expedited Visitor Levy (Scotland) Reform Bill.
They say the percentage-based model requires operators to strip out non-accommodation elements, such as meals or cleaning fees, before applying the levy. Major online platforms such as Booking.com and Expedia have said this has technical challenges.
It is also claimed that it breaches UK consumer protection law, which requires guests to see a clear final price at the point of booking.
Marc Crothall, chief executive of the Scottish Tourism Alliance, said: “The current visitor levy framework is a disaster waiting to happen.
“It is not a question of political principle but of operational reality. Although the industry has for many years been against the principle of a levy, largely due to concerns over staying price competitive, it has accepted the bill passed through government and acknowledges the fiscal challenges of local authorities.
“It also accepts the idea of a fair levy that, if used as intended to help grow tourism, enhance the visitor experience and in turn benefit local communities, it could be good in some destinations.
“It also requires just one charging application model that is workable for business and is legal, which the percentage model legislated for is not.
“The Scottish Government now has a golden opportunity to fix this before irreversible damage is done.”
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers and Vice Chair of the STA Policy Working Group, said: “Scotland’s tourism and hospitality businesses have worked in good faith to make this system work, but the evidence is now overwhelming: the percentage model cannot function in practice.
“A flat, per-night levy is not only simpler and fairer, it aligns with international best practice and consumer law.
“Ministers have shown openness to reform – now we need urgent action to deliver it. This is not retreat, but responsible reform that supports fairness, clarity, and sustainability.”
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