Visitor levy key points

Developing proposals and having your say

During the development of the visitor levy legislation extensive consultation was undertaken with Scottish local authorities and groups representing tourism businesses, including accommodation providers - read more on the Scottish Parliament website.

If South Ayrshire Council decided to go ahead with a Visitor Levy then it would be required to develop and publish a local Scheme proposal and engage in formal consultation with the local community prior to implementation. The proposal would set out how funds would be used and the levy percentage charged for accommodation stays. Following the publishing of the local Scheme proposals, there is a statutory 18-month implementation period before a local levy is chargeable for the first time.

South Ayrshire Council is now seeking feedback from businesses and residents on whether a visitor levy should be considered for our area and is looking to get your views on the new legislation. We will distribute a survey to local businesses and residents to seek views on the Visitor Levy scheme. This will help us to identify how and if we might take development of a Scheme proposal forward, before we initiate formal consultation on any proposal.

Importance of tourism and shrinking public sector budgets

Tourism and the visitor economy is highly important to South Ayrshire and supports thousands of jobs in the area. Visitors come from across the UK and around the world to enjoy our unique area, the quality of our environment and the range of cultural and sporting activities.

It is not mandatory for the Council to introduce a visitor levy scheme. With shrinking public sector budgets, however, we have to investigate options that could help to support services and infrastructure that both visitors and residents enjoy.

Any charges raised by a levy would be used to cover Council's administration costs with the remaining funds spent on "developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting [overnight] for leisure or business purposes (or both)".

Some initial estimates of the annual income to be realised from the levy, based on figures published by the Scottish Government as part of their Business and regulatory impact assessment (BRIA). would indicate from around £0.4m to £0.5m per annum, based on a 5% visitor levy charge. This amount is after the Council's administration costs are accounted for and require further validation.

Roles and responsibilities

The Visitor Levy (Scotland) Act 2024 is not a licensing scheme and the day-to-day responsibility for recording and collecting a Levy lies with the accommodation owner, not the Council.

Accommodation owners within the South Ayrshire area would be liable for collecting the levy from guests, including gathering and validating evidence for any exemptions, and would be required to submit reports, detailing the total accommodation charges and the total levy collected to a national online visitor levy portal. The levy would be payable at the same time as submitting returns.

Accommodation owners would be required to keep accurate records of all stays that are subject to the levy.

The Council would monitor and report on the levy. We would also conduct inspections, as required, to ensure compliance with the scheme and returns requirements.

Where would a Visitor Levy be charged?

The Levy would be charged on stays by visitors staying at overnight accommodation within the South Ayrshire local authority area.

Unless an exemption is proposed by the Council in any published Scheme, stays at the following types of accommodation would be subject to a visitor levy:
Hotels;
Hostels;
Guest Houses;
Bed and Breakfast accommodation;
Self catering accommodation;
Camping sites;
Caravan parks;
Boat moorings or berthings;
Accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place; and
Any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor's only or usual place of residence.
The Levy would not be applied to stays at:
A local authority gypsy and traveller site or a registered social landlord gypsy and traveller site; and
Accommodation such as cruise ships.

Exemptions

A number of national exemptions and exclusions apply.

People in receipt of certain United Kingdom (UK) disability benefits are excluded from paying the visitor levy. These include: Disability Living Allowance; Disability Assistance; Attendance Allowance; Pension Age Disability Benefit; and Personal Independence Payment.

Individuals in these categories would still need to pay the levy and then request a reimbursement. They would need to submit receipts for their overnight stay, relevant evidence of their exemption/exclusion and bank details.

People who are homeless or at risk of homelessness, including people whose residence is unfit for habitation or as a result of experiencing domestic abuse or other forms of violence are exempt.

A Local Authority may wish to propose additional exemptions at a local level to the Levy Scheme.

Visitor Levy Forum

South Ayrshire Council have not yet decided whether a visitor levy will be introduced but if we did then a South Ayrshire Visitor Levy Forum may be considered as part of the Scheme proposal. A Visitor Levy Forum would help ensure that businesses, communities and organisations related to the visitor economy have a robust mechanism to conduct effective ongoing engagement with the Council once a visitor levy scheme has been introduced. The Forum could have representation from local tourism operators and businesses.

Timescales for introduction

Following analysis of feedback from the community and businesses, South Ayrshire Council will decide whether or not to develop a formal proposal for the introduction of a Visitor Levy scheme and any local exemptions applicable to South Ayrshire's Scheme. Following the publishing of a Scheme proposal, 18 months minimum must be allowed for formal consultation and implementation.

More information

You can find out more on Scotland's Visitor Levy from Visit Scotland.