Second Scottish city in talks to introduce a tourist tax
Glasgow is set to decide on whether to approve a formal consultation on a visitor levy, days after Edinburgh's city council has voted to introduce a tourist tax on overnight stays.
The city council in Glasgow will discuss the issue on Thursday, 30 January, yet some trade bodies have warned councillors they feel the tax could harm the city's attractiveness as a place to visit.
Scotland's largest city is discussing the proposal of taxing visitors by five per cent on accommodation spend, which could provide the local economy with a net income boost between £11.2m and £11.4m, The Herald reported.
The levy would apply to all hotels, hostels, guest houses, bed & breakfasts and self-catering accommodation.
If the formal consultation is approved and the council chooses to move forward with the plans, there would then be an 18-month implementation period, so the levy would not actually be introduced for a number of years.
The council's initial informal consultation report said that the 'clear message from the industry is that this money should not be used by the council to plug budget gaps', the outlet said.
It added that its main aim is to 'grow the value of tourism' in Glasgow, and has held initial consultations with trade organisations.
However, some trade bodies are cautious about the scheme.
Leon Thompson, executive director of UK Hospitality Scotland, told GlasgowLive: 'Scotland is already an expensive place to visit and we believe that visitor levies will only harm our competitiveness and reputation as a destination for visitors, both from overseas and within the UK.
'We are urging any local authorities considering a levy to first consult with businesses and local communities to work out if a levy is the best approach for their area, before moving onto developing a scheme.'
UK Hospitality Scotland has been involved in the pre-consultations with the council so far and is working alongside the Greater Glasgow Hotels Association to represent the views of local accommodation businesses.
Fiona Campbell, the chief executive of the Association of Scotland's Self-Caterers, said: 'Glasgow City Council must listen to the voice of business who will ultimately be responsible for administering this scheme.
'Tourism is a growing part of Glasgow's economy so we expect a full economic impact assessment to accompany the proposals.'
The meeting comes days after Edinburgh announced it voted to introduce a five per cent surcharge on overnight stays in the city – Scotlands's first-ever tourist tax.
Visitors will pay the levy in the Scottish capital from 24 July 2026 on accommodation that has been booked on or after 1 October 2025.
The levy, capped at seven nights, is projected to generate up to £50 million annually for the local authority to be reinvested into the city's infrastructure and services.
The Visitor Levy Act became law in September 2024, which allows councils in Scotland to tax overnight accommodation if they wish to do so.
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