The Association of Scotland’s Self-Caterers (ASSC) has submitted a briefing to Highland Councillors ahead of discussion of the Council’s latest Visitor Levy update at the meeting of Highland Council on 25 June.
Unlike a number of local authorities that have sought to move rapidly towards implementation, Highland Council has taken a measured and collaborative approach to the development of its Visitor Levy proposals. Throughout the process, the Council has engaged constructively with industry representatives, listened to consultation feedback, responded to legislative changes and continued to seek additional evidence before reaching any final decision.
The ASSC has welcomed this approach and has encouraged Members to continue along that path.
The Council’s report confirms that a number of important pieces of work remain ongoing.
Updated national Visitor Levy guidance has not yet been published, a new Economic Impact Assessment examining fixed-rate levy options remains underway, and no Scottish local authority has yet demonstrated the long-term impacts of a Visitor Levy in practice.
In its briefing, the ASSC argues that these are precisely the reasons why Highland Council should continue to proceed carefully.
Rather than rushing towards a preferred scheme, the ASSC believes Members should ensure that decisions are informed by the fullest possible evidence base, including a clear understanding of the potential impacts on visitor demand, business performance, competitiveness and future investment.
The Council’s own report highlights the importance of tourism to the Highland economy.
Latest STEAM figures show that Highland welcomed approximately 9.4 million visitors in 2024, generating around £2.129 billion in direct visitor expenditure. Visitor numbers have increased by approximately 82% since 2012, while visitor spending has increased by almost 79% over the same period.
These figures demonstrate the continued success of Highland as one of Scotland’s premier visitor destinations.
The ASSC notes that the question before Members is therefore not whether visitors contribute to the Highland economy. They already do.
The key question is whether a Visitor Levy will strengthen that success or risk undermining it, and whether sufficient evidence exists to make that assessment with confidence.
The ASSC briefing also welcomes Highland Council’s decision to commission a fresh Economic Impact Assessment examining fixed-rate levy options.
The Association believes this assessment should look beyond simple revenue projections and consider a wider range of factors including visitor demand, business turnover, employment, Gross Value Added (GVA), impacts on island and rural communities, administrative burdens and potential VAT implications for small and micro-businesses.
For many tourism businesses, particularly those operating in rural and island communities, the practical implications of a levy may be as important as the revenue it generates.
Fiona Campbell MBE, Chief Executive of the ASSC, said:
“Highland Council deserves credit for the way it has approached this discussion.
“The Council has engaged with industry, listened to feedback, responded to legislative changes and sought further evidence before reaching any final decision. That is exactly what evidence-led policymaking should look like.
“Our briefing does not seek to oppose discussion of a Visitor Levy. Rather, it asks whether now is the right time to move towards a preferred scheme when important pieces of evidence are still being developed.
“Tourism is one of Highland’s greatest economic strengths. Before introducing a Visitor Levy, we believe Members should ensure they have the fullest possible understanding of both the potential benefits and the potential consequences.
“The Council has commissioned further evidence. It has not yet received it. The national guidance has not yet been published. No Scottish authority has yet demonstrated long-term outcomes.
“Given those facts, the most evidence-led course of action may simply be to continue doing what Highland Council has done well so far: take the time to get it right.”