Perthshire tourism tax 'not off the table' says council leader

The leader of Perth and Kinross Council says the prospect of a tourism tax in the region is “not off the table” despite a move to pause the plan.

Councillors are being urged to delay the introduction of a Visitor Levy Scheme, amid an update in government legislation.

The decision will be made today, following a consultation which found many businesses in the region oppose the plans.

The scheme, which would create an additional charge on overnight stays from hotels to holiday lets, is being considered by several councils across Scotland.

“It’s what we can do with that money to support tourism, principally but in so doing also improve local communities as well,” said Councillor Eric Drysdale, leader of Perth and Kinross Council.

“It’s still very much on the table. I’m not pretending it’s got universal approval, it doesn’t.

“There are sectors of the community that are against it because of the administrative burden and the perception that any additional cost will affect tourism demand.”

Councils in Scotland were given the power to introduce a tourism tax in 2024. Edinburgh will become the first authority to implement the measure next year.

Earlier this year, Perth and Kinross Council held a public consultation, where a number of businesses raised concerns about the plans.

“You don’t want to give people any reason not to visit the area,” said Lorna Bruce, owner of The Bean Shop, in Perth city centre.

“We’ve built up a business with local people and tourists alike. Anybody who comes into our shop and finds us for the first time is obviously beneficial to us.”

Business leaders in the region have welcomed a proposal to delay the plans.

Vicki Unite from the Perthshire Chamber of Commerce, said: “We understand why the council is exploring this; they’re looking for ways to invest in infrastructure, marketing and services that support visitors without putting even more pressure on local taxpayers.

“At the same time, our members, particularly accommodation providers, are already facing rising costs, staff shortages and a raft of new regulations.

“Our position is that if a visitor levy is introduced, it must be simple, fair and clearly reinvested in the visitor economy.

“It must be designed with businesses, not done to them. We welcome the fact the council has listened to feedback and is now pausing to see how the national framework can be improved before making any final decision.”

The Scottish Government is currently considering changes to the scheme’s legislation, which could allow authorities to set flat rates or a tiered flat rate, rather than a percentage.

The leader of Perth and Kinross Council has said it’s a model he’ll look to explore.

“Now we have that option, my personal view and that of the administration, is we would want to go down a flat fixed rate or a tiered fix rate,” said Councillor Drysdale.

“We’ll take advice from council officers and others early next year to determine exactly how we do it.

“I think that would address the main area of concern and the other area of concern I hope the legislation will allow us to do is to tackle is the problem with VAT.”

If paused, a tourism tax won’t be introduced in Perth and Kinross until at least 2028.

For now, the authority will watch how it’s implemented elsewhere.