The Scottish Government confirmed it was finalising regulations to support the implementation of the Visitor Levy (Scotland) Act 2024, ahead of Edinburgh’s scheme launch on 24 July 2026. In a letter to Daniel Johnson MSP, Convener of the Economy and Fair Work Committee, Public Finance Minister Ivan McKee said the regulations would cover interest rates, assessments, reviews and appeals, and potentially wholesale third-party provisions to assist accommodation providers.
McKee stressed the importance of robust, place-specific economic assessments and confirmed that local authorities would be required to consult stakeholders and publish proposals addressing local economic impacts. VisitScotland would support councils in developing methodologies reflecting price sensitivity, seasonality, and sectoral differences.
Significantly, the Minister acknowledged calls for greater flexibility. Ministers are considering extending powers to local authorities, including the option to introduce flat-rate or tiered flat-rate levy models alongside the current percentage-based approach.
Responding to the update, Fiona Campbell MBE, Chief Executive of the Association of Scotland’s Self-Caterers, said:
“We welcome the Scottish Government’s recognition of industry concerns and its commitment to enable local authorities to adopt alternative visitor levy methodologies, including a flat-rate model. This is something we have consistently called for, alongside colleagues across the tourism and hospitality sectors, as it offers clarity, fairness, and simplicity for both visitors and providers.
We recognise the complexities of enabling this shift and the legislative hurdles that must be overcome. However, it is regrettable that these challenges were not addressed earlier and that the legislation was not written fit for purpose from the outset. Had a more pragmatic approach been taken, we could have avoided the unnecessary uncertainty and operational risk businesses are now facing.
All eyes will be on Edinburgh’s implementation. While it will serve as a test case, there is no doubt it will pose a huge challenge for accommodation providers already under considerable pressure. The hope must be that this does not become the tipping point that deters visitors from choosing Scotland.
That said, I am encouraged that Ministers are now listening to calls for flexibility and are working to correct course. The sector remains committed to constructive engagement and to shaping a levy that is fair, consistent, and sustainable. Our priority is to protect Scotland’s competitiveness as a world-class destination while ensuring any levy introduced delivers genuine benefit to local communities.”