Visitor levy proposal for East Lothian
The Visitor Levy (Scotland) Act 2024 received Royal Assent in July 2024. This means that local councils, like East Lothian, now have the power to generate a revenue stream specifically for the benefit of the visitor economy.
In October 2024 East Lothian Council agreed to develop a visitor levy proposal for East Lothian. The proposal will be developed with visitors, businesses, and communities and represents a unique and significant opportunity for the tourism sector.
Key points to note
Consultation 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
- during 2024 we included questions about the visitor levy legislation in our visitor survey and in a survey issued to businesses in the tourism sector - information from those surveys is being used to inform the full engagement and consultation process we are developing
- there will be opportunities over the coming months for residents, tourism businesses and organisations, and anyone else who could be affected by a visitor levy to contribute to the development process - details will be publicised when the formal engagement programme is finalised
Importance of tourism and shrinking public sector budgets
Tourism and the visitor economy is highly important to East Lothian and supports thousands of jobs in the County. 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. However, with shrinking public sector budgets, we have to investigate options that could help to support services and infrastructure that both visitors residents enjoy.
Timescale for introduction
We have not yet decided whether a visitor levy will be introduced. It would take between 2.5 and 3 years to fully develop and implement a scheme for East Lothian, allowing time for engagement, consultation, and development.
Tourist businesses included in the visitor levy
The scope of a levy for East Lothian is still to be determined, but can only apply to overnight visitor accommodation such as short term lets, hotels, hostels, B&Bs, guesthouses, campsites and caravan parks etc.
Payments
A levy would apply to visitors staying overnight in accommodation that is not their ordinary place of residence, for example short term lets, hotels, hostels, B&Bs, guesthouses, campsites and caravan parks etc.
Accommodation providers would be responsible for collecting the levy from overnight visitors and paying it to the council.
Details such as the percentage rate, number of nights charged, and potential local exemptions will be part of engagement and consultation and subject to approval by council.
Exemptions
Section 14 of the Visitor Levy (Scotland) Act 2024 provides for national exemptions for those is in receipt of certain benefits, payments or allowances for a disability - read more on Legislation.gov.uk.
The legislation does not apply to people who are using overnight accommodation as their only or primary residence or people staying on certain gypsy / traveller sites.
The proceeds must be spent on facilities and services for visitors
The legislation requires that net proceeds of a visitor levy scheme must be spent on developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting the area for leisure or business purposes. The engagement and consultation process will help shape how the proceeds of the levy could be spent locally and will be subject to approval by the council.
Collecting the levy
Accommodation providers would be responsible for collecting the levy from visitors and paying it to the council. As the legislation is new and there are as yet no operating visitor levy schemes, further engagement, consultation, and development will be required to determine how this would operate in practice. This is one reason it is expected to take up to 3 years to fully develop and implement a visitor levy for East Lothian.
Support for businesses collecting the levy
This will be determined through engagement and consultation and confirmed once the scope of the levy is agreed.
Further information
- Visit Scotland has a summary of the guidance about the visitor levy on their website, including Frequently Asked Questions for tourism businesses: read the guidance on VisitScotland
- this web page will be kept updated with information
Legislation and national guidance
To find out more about the legislation process associated with the levy: visit the Scottish Parliament Website.
Contact us
If you have any queries you can contact us at visitorlevy@eastlothian.gov.uk.
Page last updated 30 October 2024