3 days ago
Aberdeen introduces tourist tax higher than Barcelona or Venice
Overnight visitors to Aberdeen will be saddled with one of the highest tourist taxes in Europe in a move branded 'economic madness'.
Hoteliers fear a 7pc per night premium will drive away tourists, yet the council has agreed to introduce the charge from April 2027.
The council, which is run by the SNP and Liberal Democrats, expects the fee to generate up to £6.8m a year.
The rate will be the highest in Scotland and will be higher than tourist behemoths such as Barcelona and Venice.
Visitors paying a typical rate of £70 a night for their Aberdeen stay will have to spend an extra £4.90 as a result of the levy.
But a five-night stay at the city's high-end Marcliffe hotel, worth £1,015, would come with an additional £71 charge. This analysis is based on September booking costs.
Councillors sitting on the finance and resources committee agreed on the 7pc premium at a meeting on Wednesday.
They heard how businesses were 'broadly not in favour' of the charge, with consultation responses stressing that 'this levy will make things worse for struggling businesses'.
Another questionnaire respondent wrote: 'The levy makes no sense in a city with poor transport links and few tourist draws', while another said it would be 'a disaster in winter months'.
The tourist charge will be enforced all year round, with guests at small B&Bs and hostels also liable to pay.
The council plans to use the predicted £6.8m income to pay for tourism infrastructure, attract business conferences and boost funding for city events.
In Paris, tourist taxes are calculated on a sliding scale, with campsites attracting the lowest €0.65 fee and palaces attracting €15.60.
In Aberdeen, however, the charge will be fixed at 7pc of the original accommodation price.
The 7pc far surpasses Vienna (3.2pc), Palma (€1 to €4) and Barcelona (€4 per trip). Amsterdam charges the highest tourist fee of 12.5pc of the total cost of the hotel room.
Mike Duncan, of the Federation of Small Businesses, said the policy has the potential to raise vital funds but is a 'gamble'.
He said: 'It must be handled with extreme care. One size most definitely does not fit all. Research suggests some so-called tourist taxes can deter visitors and negatively affect the local economy.
'What works for Paris or Barcelona, for example, might be very different to what works for Aberdeen.'
Scottish local authorities were granted powers to introduce a visitor levy on overnight accommodation by the government last September.
Edinburgh and Glasgow have approved a 5pc charge, while other regions such as Highland Council intend to agree a fee.
Councillor 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.'
However, Fiona Campbell, of the Association of Scotland's Self-Caterers, said the decision 'is nothing short of economic madness'.
'It demonstrates a worrying disconnect between policy ambition and operational reality,' she said.
'The council must ensure the levy is not just collectable, but deliverable, in a way that doesn't destroy the very sector it aims to benefit.'
Martin Greig, an Aberdeen councillor, said: 'When you visit tourist areas you gather memories and have great experiences – but through the levy, you're able to leave a legacy.
'You're able to demonstrate you're not just passing through but also show you care about the place by contributing something back.'
The council hopes the city, which drew in 2.2m overnight visitors last year, can attract major events thanks to the increased income.
Visitors from cruise ships and motor homes will be exempt from the levy, along with those staying overnight for medical visits, asylum seekers and people who receive benefit payments.
