According to a press release, East Lothian’s tourism sector is set for significant changes following the Scottish Parliament’s passage of the Visitor Levy (Scotland) Act in May 2024, which received Royal Assent in July. This new legislation empowers local authorities to implement a charge on overnight accommodations, including caravan parks, camping sites, and self-catering facilities.
The Act’s development involved extensive consultation with Scottish local authorities, tourism businesses, and other stakeholders, encompassing national discussions, public consultations, and input from tourism and accommodation sector representatives.
Councillor John McMillan, East Lothian Council spokesperson for Economic Development and Tourism, highlighted the importance of tourism to the region’s economy. “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,” he stated.
The levy applies to various types of overnight visitor accommodations, including short-term lets, hotels, hostels, B&Bs, guesthouses, campsites, and caravan parks. Exemptions are in place for individuals receiving certain disability benefits, those using overnight accommodation as their primary residence, and people staying on specific gypsy/traveler sites.
McMillan emphasized the importance of stakeholder engagement in shaping any potential proposal. “This levy could be an effective way to improve facilities and services used by visitors and local people alike and lift some of the burden on the public purse, but we also want to get it right, of course, so working collaboratively will be a key element in shaping the proposal,” he noted.
The legislation mandates that the net proceeds of a visitor levy scheme be spent on developing, supporting, and sustaining facilities and services used by visitors for leisure or business purposes. This includes investing in local amenities to attract more visitors and enhance the visitor economy.
The implementation process involves several stages, including engagement, development, and financial modeling. A draft levy proposal would then be presented for review and approval, with full consultation being a crucial part of the process. There is a statutory minimum period of 18 months from the point of approval before the actual charging of any levy could begin.
Accommodation providers will be responsible for collecting the levy from visitors and remitting it to the council. The support for businesses collecting the levy will be determined through engagement and consultation and confirmed once the scope of the levy is agreed upon.
While specific plans for East Lothian are yet to be finalized, the introduction of this visitor levy aligns with a broader trend seen in various tourist destinations worldwide. As discussions progress, the focus will likely be on balancing additional revenue generation for local improvements with maintaining East Lothian’s appeal as a tourist destination, including its outdoor hospitality sector.
