Visitor Levy Scheme
Visitor Levy Scheme Stirling Council
Introduction
In May 2024, the Scottish Parliament passed the Visitor Levy (Scotland) Act. The Act gives local authorities the ability to charge a set percentage on overnight accommodation paid by visitors and tourists. In December 2024, Stirling Council agreed to start a period of public consultation to understand whether and how a visitor levy could be implemented in the region.
It is estimated the introduction of a 5% visitor levy could generate between £5m and £7.5m but these figures are subject to revision. The legislation states that all money raised must be reinvested locally on facilities and services that are used by, or substantially for, leisure and business visitors. This includes infrastructure, events and culture, as well as improvements to destinations that enhance the visitor experience. Because residents and visitors use many of the same things, the visitor levy has the potential to improve life for residents as well as visitors.
Have your say
An early engagement period ran from 3 March to 4 May 2025 and involved an online survey and a series of in-person drop-in sessions. The results of which informed our draft scheme that sets out the levy’s objectives, timeline, percentage rates and how revenues would be re-invested.
To make sure the proposals for the scheme meet the needs of Stirling's visitors, residents, and businesses, we are asking again for your input. In the statutory consultation phase, we want to know what you think about our draft Visitor Levy Scheme.
The formal consultation process will start on the 14 July and run until the 12 October 2025 and will involve an online survey, which should take approx. 15 mins to complete.
Paper copies are also available in Stirling Council libraries and can also be downloaded here from the 14 July).
A series of in-person drop-in sessions have also been arranged as follows:
- Tuesday 9 September, Albert Halls, Stirling 10am-6pm
- Thursday 11 September, McLintock Hall, Balfron 10am-6pm
- Wednesday 17 September, Drymen Village Hall 10am-6pm
- Tuesday 23 September, McLaren Hall, Killin 10am-6pm
- Monday 29 September, Callander Youth Hostel 10am-6pm
The results from this statutory consultation will then be analysed and will be used to inform a finalised Visitor Levy Scheme which will be taken to Councillors in December 2025. The Council will then decide whether to implement the Visitor Levy scheme in Stirling or not.
If the Council approves the Visitor Levy Scheme, there will be a minimum 18-month implementation period before the levy collection begins. The earliest date that Stirling could start collecting a levy is therefore June 2027. If it is approved, the council will use the 18- month implementation period to help accommodation providers understand and set up for the levy, alongside establishing key things like an advisory Visitor Levy Forum who will advise on the operation the levy and administrative systems to make sure the transition and ongoing management of the scheme goes smoothly.
What is a visitor levy?
A visitor levy is a charge paid by people using paid accommodation. In Scotland, this is a percentage charge. Revenue from the levy has to be invested locally on facilities and services that are for, or used by, tourists.
How much will it be?
There is no limit on how much the levy can be. As a result of our engagement findings and in line with other local authorities that have approved schemes (Edinburgh and Glasgow), Stirling Council are proposing a levy of 5% in the draft scheme.
The final levy rate has not yet been decided for Stirling and your input to this consultation will shape that decision.
The legislation says that the levy must be charged before VAT.
The table below shows an example of how the visitor levy would be worked out, and how different rates would affect the overall cost.
| Levy rate | Room cost | VAT (20%) | Total cost |
| No levy | £100 | £20 | £120 |
| 3% | £103 | £20.60 | £123.60 |
| 5% | £105 | £21 | £126 |
| 7% | £107 | £21.40 | £128.40 |
Why can't it be a flat fee?
The legislation states that the Visitor Levy must be a percentage charge. This means we are not allowed to introduce a flat fee.
Who would pay the levy?
The legislation gives some groups of people automatic exemption from paying the levy. These include those who use overnight accommodation as their only or main residence (for reasons like homelessness, poor housing conditions, experiencing domestic abuse, or being an asylum seeker or refugee).
We are also proposing a site exemption for charities and educational establishments where the main purpose of any trip is either charitable or educational.
An exemption will apply for visitors who are in receipt of the following UK and Scottish disability benefits.
- Disability living allowance
- Disability assistance
- Attendance allowance
- Pension age disability benefit
- Personal independence payment.
Informed by the period of early engagement, Stirling Council in their draft scheme are also proposing to exempt the following visitors:
- Carer’s in receipt of Carer’s allowance
- Stirling council residents (by council tax register)
- Stays over 7 nights (the first 7 nights will be payable)
This would require exempt visitors to pay the levy initially and then provide proof of their exemption status and receipts to the local authority who will then process a refund. With exception of the specific site exemption (where Edinburgh has also adopted this), other local authorities have decided not to include extra exemptions above those listed in the Act, because of concerns about administering them and are offering reimbursement for those who are exempt as this means the accommodation provider does not need to ask for sensitive information or process exemptions.
Some of the arguments for and against local exemptions can be seen on pages 26 to 33 of the Scottish Parliament's summary of submissions to the Local Government, Housing and Planning Committee in relation to the Visitor Levy Bill.
Stirling Council have included a statement and proposals on exemptions within their draft scheme, but this has not yet been formally decided for Stirling, and your input to this consultation will shape the final decision.
When would it apply?
It's up to the local authority to decide whether to apply the levy for the whole year, or only for parts of the year. Stirling Council are proposing in their draft scheme that the Visitor Levy should apply at all times of the year. This has not yet been formally decided for Stirling and your input to this consultation will help shape that decision.
When will it start?
If Council approves the introduction of a Visitor Levy it would be subject to a minimum 18-month period of implementation between its announcement and the scheme coming into effect. The earliest it could be introduced would be June 2027.
Where would it apply?
It is up to the local authority to decide whether the levy should apply in the whole area, or only in parts of the area.
Stirling Council are proposing in their draft scheme that the levy should apply to the whole area. This has not yet been decided for Stirling and your input to this consultation will ultimately help shape that decision.
Are any types of accommodation exempt?
The legislation states that the levy cannot vary by accommodation type, so it has to apply to all kinds of accommodation, including hotels, self-catering, caravans and campsites.
How will you make sure the funds are spent on what the scheme says they should be?
When accommodation providers remit money to the local authority, it has to go in a dedicated bank account specifically for the Visitor Levy. This means it does not go into our general budget, and that it remains ring-fenced.
The objectives for tourism in the region will be set out in the final scheme, and these will inform where the money is spent. In the draft scheme we have suggested proposals on what we think the priorities should be and encourage you to provide feedback on these via the consultation.
The law says that we have to establish a Visitor Levy Forum that acts as an advisory group on the operation of the Visitor Levy, and we will set this up within 6 months of any decision to proceed with a scheme.
How is the money collected and paid?
Accommodation providers will collect the levy when visitors book or pay for their booking. It is up to the authority and/or accommodation providers to decide whether to list the Visitor Levy as a separate line on visitors' bills (like VAT) or to include it within the room rate or tour price.
The Improvement Service (the national improvement organisation for Local Government in Scotland) is developing a national platform for accommodation providers to use to report and remit the levy to their local authority. When the accommodation provider needs to report their visitor Levy income and remit proceeds to the council, they will be able to use the platform to populate the relevant detail, and the platform will then calculate the amount due to the authority.
The frequency of reporting and collection is up to the local authority, and while no decision has been made in relation to this for Stirling, we are proposing a quarterly submission in our draft scheme.
How will Stirling Council support accommodation providers?
In parallel with the statutory consultation process, we are engaging directly with accommodation providers and the wider tourism sector to find out what support they would like if the levy is introduced. If you are an accommodation provider in Stirling, please log your interest in receiving a specific survey by emailing us at visitorlevy@stirling.gov.uk from your business email account.
The Improvement Service is developing a national reporting platform to help accommodation providers submit returns to their local authority, so that there is a consistent approach across Scotland.
The local authority may also provide other types of support - for example, Glasgow City Council has proposed to allow accommodation providers to retain 1.5% of the levy funds that they collect to help with administrative costs, and Edinburgh Council has proposed retaining 2% of the levy fund to mitigate costs for providers. Stirling Council have listened to the views of respondents in our early engagement and are proposing that accommodation providers should be allowed to retain 3% of the levy collected towards administration costs.
Additional resources
We want as many people, businesses and organisations to have their say about Stirling’s draft Visitor Levy Scheme and a range of assets including posters, social media graphics and a paper copy of the survey are available to download to be used freely.
Further information
Visit Scotland has produced in-depth guidance on the Visitor Levy and regularly updates its web pages with information about what 's happening in local authorities around Scotland. You can access the guidance and other helpful information at this link: Visitor Levy Guidance.
Summaries of responses to the national consultation about the levy can be found on the Scottish Parliament webpages about the Bill under the 'Stage 1: general principles' section.