Fife Council to consider introducing tourist tax
Fife Council is looking to bring in a tourist tax with the hope it could bring in up to £8 million a year.
A report to Thursday’s cabinet committee meeting seeks permission from councillors to start discussions on a potential levy with communities and businesses.
Carol Connolly, executive director of place, says a five per cent tax could bring in anything between £3.4m and £8.2m a year for Fife Council, with the total amount depending on the number of people staying in accommodation in the Kingdom.
The money raised could then be used to invest in facilities to benefit tourism such as bus and car parks, public toilets and motorhome provision.
It could also be used to develop visitor attractions, including major events and town centre regeneration.
Last year, the Visitor Levy act gave Scottish local authorities the power to apply a fee to those staying in paid accommodation within their area.
This would be collected at point of sale by businesses and passed to the council for spending on projects that will all be linked to tourism and the visitor economy.
Edinburgh City Council was the first place to approve a visitor levy and will charge visitors an extra five per cent on top of their accommodation costs from next summer.
However, other local authorities including Falkirk and Perth and Kinross are now looking at introducing a levy too.
If councillors agree to go ahead with the report recommendations this week, council officers will be able to undertake early engagement with businesses, residents and communities with a view to creating a draft scheme.
Ms Connolly’s report said that potential benefits of the levy include “a sustainable, year on year, source of revenue; an enhanced visitor offering; physical and cultural improvements to local areas and increased funding opportunities for community-led tourism projects”.
However, it adds that the potential drawbacks include an increased administrative burden on the council and accommodation providers.
Following the initial discussions and the creation of a draft scheme, a 12 week formal public consultation would need to take place.
If council officials are given the green light to start discussions on Thursday, a report will be brought back to Cabinet Committee in January 2026 for a decision on whether or not to progress.
With an 18-month notice period required once a final decision is taken, the earliest launch date for a Fife tourist tax if it was to be agreed would be April 2028.