Perth and Kinross Council will begin seeking the views of local businesses and residents on the possible introduction of a tourist tax in the area.
The move was approved at an Economy and Infrastructure Committee meeting on Wednesday, February 3.
The feedback gathered will be reported to councillors in December 2025 who will then vote on whether or not to proceed with introducing the scheme.
Councillors this week agreed the approach and timeline for early engagement and for a draft Perth and Kinross Visitor Levy Scheme to be drawn up, informed by the public’s feedback.
The Visitor Levy (Scotland) Act 2024 allows local authorities to introduce a levy on overnight accommodation. The income raised can be reinvested locally “to enhance the visitor experience”.
At Wednesday’s meeting, PKC’s Economic Development Manager Steven MacDonald highlighted potential benefits and concerns that will need to be given consideration.
He said: “Tourism is one of our key economic sectors.
“‘A visitor levy – a percentage rate on overnight stays – has the potential to provide indefinite annual funding allowing multi-year investment for transformational and impactful projects over the short, medium and long term.”
Mr MacDonald added: “It is important to recognise there are also challenges to the introduction of the levy: income being used by local authorities to offset general budget pressures; currently exempt businesses moving into higher tax thresholds, and the price points at which it risks attracting visitors to our area are all concerns which have been raised.”
Conservative councillor Angus Forbes sought more detail on whose views the council would be seeking as part of its engagement plan.
Cllr Forbes: “I’ve got no idea who you’re talking to. That’s the kind of detail I was looking for and that’s what worries me.”
The Carse of Gowrie councillor added: “I genuinely want to make sure that we do it right and with elected member involvement.”
The committee’s convener Eric Drysdale assured councillors they would be involved.
The deputy SNP leader said: “For the avoidance of doubt, there will be an opportunity for members of this committee and the wider elected members to feed into that process.”
Liberal Democrat councillor Alan Watt questioned an anomaly in the Scottish Government guidance on the visitor levy.
The Strathallan ward councillor said: “If I throw my tent in the back of my car and take it to a campsite, I pay a levy but if someone shows up in a motorhome, they are exempt.
“That’s maybe something that can be considered as part of the consultation going forward.”
Liberal Democrat councillor Willie Robertson raised concern about visitors potentially not being charged at the time of booking a cottage then refusing to pay on arrival but decided “on balance” he was happy to support the proposal going forward.
The Kinross-shire councillor added: “I think the prize at the end of the day will hopefully be worth the effort. I’m encouraged by the fact there will be extensive consultation to try and iron out many of the issues myself and fellow councillors have raised.”
In 2023 there were 2.3 million visits to Perth and Kinross. Visitors stayed an average of three nights and generated £641 million for local businesses and communities , supporting 8,200 full-time equivalents.
Conservative group leader John Duff said it was “vital” PKC engaged properly on the proposal due to the impact it would have.
The Highland Perthshire councillor said: “I think it’s vital for the local economy and employment that we get this right.
“Make no mistake, introducing a new tax is no small undertaking. It will not just be an accommodation levy affecting tourists to our area outwith Scotland but it could have a significant impact on our own residents working away from home or in any circumstances where they need to stay away from home in paid accommodation.”
He added: “It is important we take our time to ensure that all views and areas are considered and addressed.
“We can’t afford to kill off this golden goose, which is our tourism industry and already under pressure.”
Cllr Eric Drysdale said: “We are determined to do all we can to get this right.
“And, if we do get a decision to do this, that we shape any visitor levy in the way that we want it to maximise the benefits and minimise any down sides.
“And I wanted elected members to be involved every step of the way.”
The initial engagement process will last between six and 10 months. The feedback will then be collated and a report and draft Visitor Levy Scheme will be presented to councillors in December 2025. Councillors will then decide whether or not to approve the scheme. If agreed in December, a statutory 12-week consultation would then take place then an 18-month implementation. The tourist tax would not be in place in Perth and Kinross until summer 2027 at the earliest.