Highland flat-rate tourist tax calls issued as region’s business leaders in Inverness, Caithness, Cairngorms and west Highlands unite against percentage plan

Business leaders across the Highlands have united to back calls for changes to planned tourist levies.

Four different chambers of commerce joined forces this week to write to government ministers requesting that the new Visitor Levy Act be amended.

It comes after Highland Council’s convener Bill Lobban wrote to the public finance minister, Ivan McKee, to reiterate the local authority’s long-standing preference for a flat or banded rate tourist levy.

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The new Visitor Levy (Scotland Act) 2024 instead opted for a percentage-based levy.

Highland Council is now conducting consultation for a tourist levy based around the current legislation, with it suggesting a five per cent figure.

But businesses are concerned a percentage-based fee could make collection and calculation of the rate unnecessarily burdensome.

And those fears prompted the Inverness, Cairngorms, Caithness and West Highland chambers of commerce to join forces to add their combined voice to the debate.

They are calling for local authorities to have the option of setting a flat or banded rate, rather than being required to implement a percentage-based levy.

In December, the four chambers jointly called on Highland Council to pause the implementation of the levy. Since then, they have engaged closely with their member businesses. While they acknowledged it was clear that “a slight majority support the principle” of a visitor levy, they stressed that there was “no business support” for Highland Council’s current proposal based on the percentage levy legislation.

On February 12, Highland Council’s convener Bill Lobban wrote to the minister, reiterating the council’s longstanding preference for a flat-rate levy and asking whether there is scope to amend the regulations. The four Highland chambers have now fully endorsed Cllr Lobban’s request.

The chambers added that Highland accommodation providers had raised a number of concerns about Highland Council’s proposal. As well as being more difficult to collect, they say it is subject to additional VAT, and will also apply to all visitors using overnight accommodation - not just outside tourists - meaning Highland residents travelling for business or medical reasons will also be charged.

They also say that, unlike in some other council areas, there is no proposed compensation for businesses to cover the cost of collecting the levy.

They also argue that the Highlands’ seasonal tourism economy is not reflected in the proposal, which would apply the levy year-round.

The four chambers said: “Additionally, accommodation providers feel that key details should have been clarified before the consultation period to allow respondents to make informed choices.

“The collection method is still unknown, meaning the administrative burden remains unclear.

“Highland Council’s plans for spending the levy are less developed compared to other local authorities.

“[And] Highland Council has not yet specified who will sit on its Visitor Levy Forum, so it is unclear who will be advising on spending decisions.”

They continued: “The chambers continue to work closely with Highland Council on this issue and are optimistic that substantial changes will be made once consultation responses have been fully considered.

“In the meantime, they reiterate their call for a pause on implementation and welcome the Highland Council convener’s request for the legislation to be amended.”

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