A Scottish trade association for self-caterers has warned Stirling Council to ‘tread carefully’ over proposals to introduce a ‘tourist tax’ from 2027.
The Association of Scotland’s Self-Caterers (ASSC) says that the introduction of a visitor levy scheme on tourists in Stirling would mean that small businesses could become ‘de-facto unpaid tax collectors’.
Plans to explore potentially introducing the levy in Stirling was approved by councillors at a full meeting of Stirling Council on Thursday.
Work will now be undertaken over the next year following the decision and the council says that the introduction of a levy scheme would see a set percentage charge on overnight accommodation paid by visitors and tourists to the city.
ASSC chief executive, Fiona Campbell says that the implementation of the tax must ‘be done right’.
“We have seen that short-term let licensing has been far from plain sailing and the same affected small businesses now look set to become de-facto unpaid tax collectors. The accumulative regulatory impact could cripple businesses at a time when recovery is precarious.
“However, it is not just operators or overseas visitors who will be impacted but ordinary Scots choosing to visit Stirling will be hit in the pocket too.
“Tourism is an important part of Stirling’s economy, with short-term lets generating nearly £30million GVA, supporting 960 jobs, according to a new analysis by BiGGAR Economics. It is therefore imperative that we see a full economic impact assessment to accompany the proposals.
“Overall, any levy must be set fairly, have good governance and thoughtful implementation at its core, and monies raised ringfenced for tourist infrastructure only. Failure to take these steps could result in a levy that erodes the very industry it is supposedly intended to support.”
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A consultation will now be undertaken with residents, local traders, tourism operators and other key stakeholders – including Loch Lomond and the Trossachs National Park. The results of the consultation will then inform a draft scheme that sets out the levy’s objectives, timeline, percentage rates and how revenues would be re-invested.
It will be presented in the autumn, with a further report to be brought to the council in December 2025 that will seek to approve or dismiss its introduction in Stirling.
If the levy is given the go ahead, it would be subject to a minimum 18-month period of implementation between its announcement and the scheme coming into effect, meaning that the earliest that it could be introduced would be in June 2027.
The Visitor Levy (Scotland) Act 2024 was passed by the Scottish Parliament in May this year and is also being considered by a number of local authorities in Scotland, including Edinburgh, Glasgow, Argyle and Bute and Highland Council.
Following the approval for exploratory investigations in to bringing in the levy, Stirling Council deputy leader, Cllr Gerry McGarvey, said: “Tourism is one of the most important sectors in the Stirling economy. We are still at the early stages, but we are committed to exploring the potential of the visitor levy scheme and this will involve full public consultation with residents, businesses and visitors throughout 2025.”
It’s estimated the introduction of a one-per cent visitor levy could generate between £1.5million-£2.3million annually. A five per cent visitor levy could generate up to £7.5million.