Aberdeen to introduce 7% ‘tourist tax’ on visitors

Councillors have backed the introduction of a 7% visitor levy for Aberdeen.

The so-called tourist tax would be applied to bills for overnight stays at accommodation in the city.

It would not be until at least April 2027 before it was implemented, but the proposed charge is higher than the 5% approved for Edinburgh and Glasgow.

Aberdeen City Council’s finance and resources committee heard that, with the average hotel room costing about £70, the levy would cost visitors an extra £4.90.

The council said the new charge could generate up to £6.8m a year.

Funds raised from the levy would help pay for infrastructure used by tourists.

But Mike Duncan from the Federation of Small Businesses urged the council to carry out an economic impact assessment before it is implemented.

He told BBC Scotland News there could be “positive repercussions” from collecting the additional funds from visitors.

But he added: “The problem is we don’t know that’s going to be the case.

“We don’t know that it’s going to have a positive impact and there is a chance that it could have a negative impact on visitor numbers.”

The council’s finance convener Alex McLellan said: “The income generated from the visitor levy, paid by those visiting the city, will provide a huge boost to our local economy and allow us to invest in bringing major events and conferences here on a more regular basis.

“Across Europe we are paying similar amounts to stay per night subsidising their thriving economies, and we should do the same to ensure we can compete in terms of attracting both business and leisure tourism to Aberdeen.”

Steven Gow, chairman of Visit Aberdeenshire, said the city welcomed more than two million overnight stays in 2024.

Cruise ships and motor homes are not subject to the levy, and those who receive disability payments are exempt.

Aberdeen, along with other Scottish local authorities, were given powers to introduce a visitor levy on overnight accommodation in September.

Earlier this year, councillors in Edinburgh and Glasgow approved a 5% charge on overnight stays in hotels, hostels, guest houses, B&Bs and self-catering accommodation.

Several other regions in Scotland are looking at similar plans, including Highland Council.

But plans to develop a “tourist tax” for the Western Isles have been put on hold.

A report to councillors said a cost benefit analysis suggested it would have “marginal benefits”, and could potentially harm the islands’ tourism economy.

Officers said the pause would also allow time for a potential introduction of a “point-of-entry” levy, which could be charged at ports and airports.