Following a recommendation by the Scottish government, the Highland Council has decided to put its plans for a 5% tourist levy on hold. In early 2026, a new bill should be introduced that gives local authorities greater flexibility around visitor levies, thus allowing for a more varied approach.
Earlier in 2025, the Scottish Highland Council had announced it was envisioning a tourist levy. That decision was based on the Visitor Levy (Scotland) Act 2024, granting councils the power to raise funds for tourist services and facilities by applying a charge on overnight stays based on a percentage of accommodation costs.
The levy was set to amount to 5% per room per night, allowing them to raise an estimated £10 million for the region. However, following that announcement, both accommodation providers and the Chambers of Commerce in Cairngorm, Caithness, Inverness, and Lochaber had expressed their concerns. The local stakeholders were afraid that the added cost might discourage some tourists from visiting the region.
More flexibility ahead
During the second week of December 2025, the Scottish government officially recommended that the Highland Council put its plans on hold. A new bill is scheduled to go into effect early 2026, giving local authorities greater flexibility around visitor levies.
Instead of operating by percentage, they could opt for a fixed amount instead, and different fixed amounts could be adopted for different geographical locations, times of year, and types of accommodation. Local authorities could also choose to apply the levy on a per-person-per-night basis, instead of per room per night. Moreover, the legislation is set to provide clear information about how the levy should be applied to sales via third parties and about which information accommodation providers would have to share with councils.
“The visitor levy empowers councils by giving them a new way to raise money for investment in tourist services and facilities. Our aim has been to give councils the flexibility to design a levy that works for their areas, while ensuring businesses can easily understand what it means for them. The Act passed last year was an example of partnership working between the Scottish Government, local government, and tourism businesses. Through regular discussions with our partners, it became clear that further flexibility would be welcomed. That is why we have decided to legislate next year, to ensure local visitor levies work effectively for everyone”, said Public Finance Minister Ivan McKee in a statement.
Following the recommendation made by the Scottish government, the Highland Council decided on 11 December 2025 to pause its initial tourist levy initiative while waiting for the new bill. Councillors unanimously backed the recommendation during a meeting. While the Association of Scotland’s Self-Caterers found the decision to be sensible, tenants’ union Living Rent was less enthused, according to the BBC.
An update on the issue is expected early 2026, as soon as the bill goes into effect.
