There is mounting frustration at “overtourism” at scenic hotspots and popular cities, where residents have complained about noise, litter and Airbnb-type rentals pushing out housing for local people.
Edinburgh Council decided last month to bring in a 5 per cent visitor levy on overnight stays – the biggest introduced in the UK to date.
However, tourism chiefs have told The i Paper they fear cash-strapped councils will use the tax to fill “black holes” in their budgets rather than improving the local environment.
With trips to the UK from overseas hitting a record high of 41.2 million last year, millions of tourists, both international and domestic, could soon be asked to stump up more cash when on holiday.
Two-thirds of local authorities in Scotland are thought to be considering their own levy. Glasgow, Aberdeen, Stirling, Falkirk, Highland and Argyll and Bute councils are already consulting their residents on a tourist tax.
Edinburgh’s 5 per cent levy on overnight stays comes into force in 2026 (Photo: Jeff J Mitchell/Getty)There is a similar push under way in England. Manchester has already introduced in a £1 a night voluntary charge, per room, for visitors using the city’s hotels.
Liverpool’s ABID group is planning to do the same, with a £2 nightly fee per room expected to begin this summer.
Liverpool is set to bring in a £2-a-night charge on accommodation this summer (Photo: Loop Images/Getty)In Bristol, the Liberal Democrat group has put forward a visitor levy. The local party, though not in power, said a £2-per-night accommodation charge could be an “innovative revenue stream”.
Ralph Averbuch, who runs three self-catering flats in Edinburgh with his partner, said the 5 per cent levy coming into force in July 2026 will make life “hugely difficult”.
Russell Fraser, managing director of Loch Ness Hub and Travel, said the 5 per cent levy proposed by Highland Council would push some accommodation providers out of business. Visitors may “vote with their feet” and stay away, he fears.
“It will be expensive and time consuming to work out each amount, work out VAT, share your bookings, share your revenue [with the council],” said the Loch Ness tourist chief. “It’s ends up being a further tax on business.”
Portmeiron in north Wales, where a bill to bring in tourist taxes is being considered (Photo: Getty)“It may not sound like a lot – but if you add on the VAT it takes it to £1.50 a night. If it’s a group of six, staying seven nights, it’s £63. People may decide to go down to Somerset instead.”
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Read MoreBut advocates of tourist taxes believe council bosses should be entitled to capture some of the growth in the industry and redistribute it however they wish.
“Cities have seen growth [from tourism] and haven’t been able to capture the benefits,” said policy director Paul Sweeney. “We think it’s probably a good thing for councils to spend it as they see fit.”
Living Rent, a tenants’ union in Scotland, wants Edinburgh and other council bosses to ring-fence tourist tax revenue for much-needed affordable housing.
Edinburgh Council has promised £5m of the £50m expected to be raised each year will go to housing and “tourism mitigation”.
A Welsh Government spokesperson say visitor levies would help protect the “long-term sustainability” of the tourist industry by allowing money to be “reinvested in the local area”.
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