Scotland’s tourism industry has raised concerns that measures contained in the latest Scottish Budget will not be sufficient to shield businesses from mounting financial pressures, particularly in relation to non-domestic rates, as further revaluations are scheduled to take effect in April 2026.
In the run-up to the Budget announcement, tourism bodies, business organisations and chambers of commerce called on ministers to introduce more substantial reforms to the business rates system.
They warned that without decisive intervention, many operators across hospitality, leisure and tourism could face significant financial strain.
The Scottish Government subsequently confirmed a package that includes reduced basic and intermediate rates, 15% non-domestic rates relief for retail, hospitality and leisure businesses, continuation of the Small Business Bonus Scheme, and full relief for businesses located on islands and in designated remote areas.
Marc Crothall MBE, chief executive of the Scottish Tourism Alliance (STA), told Out & About Live that while the Budget acknowledged the “intense pressure” facing tourism and hospitality, the level of transitional relief announced “falls way short of what is needed now” to stabilize the sector.
He added that the measures would provide “breathing space for some, but not nearly enough to prevent potential closures and job losses”, noting that relief is capped and time-limited and does not address volatility created by revaluation or the cumulative impact of rising operating costs.
The STA welcomed continued support for island and remote businesses and confirmed funding for VisitScotland, the Rural Tourism Infrastructure Fund and major cultural and sporting events. However, Crothall said that while such funding can stimulate demand and support destination marketing, it does not directly address operating costs or long-term competitiveness for businesses on the ground.
According to recent STA research, more than 70% of tourism businesses expect trading conditions to worsen. Nearly half report delaying or cancelling investment plans, and 15% anticipate making redundancies within months.
Many operators indicate they have already implemented cost reductions, limiting their ability to absorb further increases. With business rates revaluations due in April 2026, some campsite and accommodation providers have expressed concern that higher liabilities could accelerate closures in certain regions.
For business owners in the outdoor hospitality, caravan park, glamping and RV sectors, the situation underscores the importance of scenario planning ahead of the 2026 revaluation.
Reviewing rateable values, seeking professional valuation advice, and modelling the potential impact of rate changes on pitch pricing and occupancy forecasts may help operators make informed decisions.
Engaging early with local authorities regarding relief eligibility and ensuring accurate property assessments could also mitigate unexpected liabilities.
Industry representatives continue to call for longer-term reform of the non-domestic rates framework, arguing that greater predictability would support investment decisions and employment stability across Scotland’s tourism economy.