Comhairle nan Eilean Siar, Orkney Islands Council and Shetland Islands Council have appointed a consultant to investigate the feasibility of a visitor levy scheme for each local authority area.
Urban Foresight has been awarded the contract following a competitive tendering process.
The Comhairle previously agreed to develop a detailed outline of an Outer Hebrides Visitor Levy Scheme.
It is not mandatory for the council to introduce a visitor levy. However, with growing tourism pressures and shrinking public sector budgets, the council seeks to investigate options that could help to support services and infrastructure that both residents and visitors enjoy.
The Comhairle joined forces with the Northern Isles councils recognising there could be potential savings through joint working
The contract states that equal time be allocated to work for each of the three island authorities.
A formal engagement process with local communities, tourism businesses and organisations and other stakeholders will take place to understand potential impacts and help shape the design of a future scheme if progressed. Details will be publicised as soon as the consultation programme has been finalised pledged the local authority.
A cost-benefit analysis – measuring the benefits of a scheme versus the associated
costs – will also be undertaken.
The findings of the feasibility investigations will then be presented to councillors to inform a decision on whether to follow other councils in introducing a visitor levy.
A tourist tax is a proposed charge on overnight stays for visitors in some types
of accommodation including hotels, hostels, B&Bs, and holiday cottages with the proceeds
ringfenced for tourism-related infrastructure improvements.
Presently, legislation excludes motorhomes unless they are staying at registered camping sites or caravan parks.
Charging cruise ships a visitor levy is not permitted under the law though the Scottish Government is committed to consulting on a potential cruise ship levy in the future.
The tourist tax is being considered as “with a population of approximately 26,200 the Outer Hebrides welcomes 275,000 visitors each year, contributing over £75 million to our local economy.
“While tourism plays a crucial role in our economy, it also places pressure on public services and local communities.
“The visitor levy will help address these challenges by providing additional resources for maintaining and improving our tourism infrastructure.”
Consultants explore tourist tax potential for Western Isles
31 January 2025
