Aberdeen considers a tourist tax to boost its economy. Council approves consultation on the visitor levy for overnight stays.
Scotland’s Visitor Levy Bill allows councils to tax overnight stays. The tax is a percentage of the cost, applying after deducting commission. Edinburgh already has a similar plan, with their levy being about five percent.
The main goal is to boost the local economy, helping businesses, visitors, and locals. Each council sets its own tax rate, and the law allows different rates. Rates can vary for special events, like arts festivals.
Aberdeen could be the second city to do this. The levy applies to hotels, B&Bs, hostels, and guest houses. Self-catering and campsites are also affected, including vehicles permanently in one spot.
Cruise ships and motor homes are exempt, as are people receiving disability benefits. The tax might start April 1, 2027, with a 7% rate proposed. This equals £5 per night on a £70 room.
Councillor McLellan says the scheme had stakeholders and noted it would now go out to consultation. The scheme could raise money for the city, helping make it a top destination. He will consider views carefully.
Hotel association chair Frank Whitaker spoke, stating that hotels initially advocated against the levy. Now, they must work with the city, as such schemes can boost local economic growth. This benefits visitors and Aberdeen residents.