Category: Visitor Levy

Fife Council has approved early engagement on a local tourist tax, agreeing to the following as set out in the meeting papers:

1. Note how the Visitor Levy (Scotland) Act 2024 and the powers granted to local authorities could be applied in Fife, and the process for considering this;
2. Note that Council agreed in the budget meeting on 20 February 2025 to ask officers to investigate the possibility of introducing a visitor levy for Fife and to undertake the necessary consultation
3. Acknowledge the importance of tourism to the local economy and the need for engagement with interested parties and
4. Note that a draft levy scheme will be developed using the intelligence gathered from early engagement and information gleaned from early adopter councils such as City of Edinburgh, which will then be brought back to the Cabinet Committee for approval before being subject to statutory consultation.
5. Approve the approach and timeline set out in Table 1.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said:

“Fife Council must tread carefully with their plans given the importance of tourism to the local economy and they simply cannot afford to make mistakes. If taken forward, it needs to be right from the very outset and they must be open about who will be charged – it won’t just be foreign visitors but ordinary Scots staying in the area, including Fifers themselves.

 The ASSC has major reservations about the introduction of a tourist tax both in Fife and elsewhere in Scotland. A VAT-attributed percentage rate is overly complex and costly for accommodation providers. This stems from deficiencies in the national legislation and the ASSC and others are imploring the Scottish Government to urgently revisit the charging model.

 Fife Council should therefore take stock and pause any further plans until the government reviews and amends its legislation. Rushing such an important decision will benefit no one, as seen with the significant unease with Edinburgh Council’s fast-tracked efforts which risks operational failure and reputational harm.

 All levels of government must work closely with the business community – those who will ultimately be responsible for the administration of any new tax – so that it is fit for purpose, ringfenced for tourist-related infrastructure only, and the regulatory burden is minimised. This is the only way to ensure that the levy does not damage the very sector it is intended to support.”