The ASSC has written to members of Dumfries and Galloway Council’s Economy and Infrastructure Committee ahead of its meeting on 9 June, urging councillors to take a measured and evidence-led approach to proposals for a Visitor Levy.
While recognising the Council’s right to consider the discretionary powers available under the Visitor Levy (Scotland) Act, the ASSC’s message is straightforward:
Is this the right time?
We do not believe it is.
The tourism and hospitality sector continues to face significant challenges, including rising employment costs, higher National Insurance contributions, inflationary pressures, increasing utility bills and a growing regulatory burden. Against that backdrop, we believe introducing a new accommodation tax risks placing further pressure on businesses, visitors and local economies.
Importantly, the policy landscape has changed considerably since many local authorities first began exploring a Visitor Levy. Scottish Ministers have already amended the legislation to provide greater flexibility around charging methodologies, while practical experience of implementation remains extremely limited, with Edinburgh only now commencing operation of Scotland’s first scheme.
A growing number of councils across Scotland have chosen to pause or delay their plans while they assess emerging evidence and consider potential legislative developments. The ASSC has urged Dumfries and Galloway Council to follow a similarly pragmatic approach.
Our letter highlights that Dumfries and Galloway relies heavily on domestic visitors and small tourism businesses operating in a highly competitive market. Any measure that risks reducing competitiveness, visitor spending or visitor numbers should be carefully assessed and supported by robust evidence.
As we stated to councillors:
“The key issue is not whether a levy can generate revenue. The key issue is whether now is the appropriate moment to introduce a new charge on overnight stays when households remain cost-conscious, tourism businesses are under pressure, and the longer-term economic impacts remain largely untested in Scotland.”
The ASSC has therefore called on the Committee to postpone further progression of a Visitor Levy at this stage, monitor the experience of early-adopter authorities and continue engaging with industry stakeholders before making a final decision.
We remain committed to constructive engagement with local authorities across Scotland and to ensuring that any future decisions affecting tourism are evidence-led, proportionate and support the long-term sustainability of local visitor economies.
We will continue to keep members updated as this matter progresses.