Tourist tax: Fife extends consultation on contentious Visitor Levy which could net £10m
Fifers will get more time to have their say on a Visitor Levy being introduced in the Kingdom.
Fife Council is looking into the possibility of introducing the contentious tax on tourists which could rake in up to £10m, depending on the level it is set at.
The local authority’s Cabinet committee has green-lighted a proposal to start a consultation process, but any levy may not come into force until 2028. There are defined timescales for draft reports, consultations with the region’s tourism industry players, communities and residents, and councillors’ debate before any decision is made. Now more time is being given to allow feedback from residents and businesses.
Fife Council has extended its public consultation until January 31 following a recent Scottish Government announcement confirming an intention to introduce legislation to allow councils to explore a fixed flat-rate levy option, alongside a percentage-based model.
This legislation is expected to be taken forward by Government early in the new year, and Fife Council wants to ensure local communities, businesses, residents and visitors have the opportunity to comment on it as part of the consultation process.
The Visitor Levy (Scotland) Act 2024 allows local authorities to introduce a levy on overnight accommodation, with flexibility over how it is applied. This includes decisions around whether a levy is charged as a percentage of accommodation costs or as a fixed amount per person per night, whether it applies across all or part of the council area - and if there should be any exemptions.
The money raised must be spent on facilities and services that benefit visitors, including leisure and business tourism. This would give the council flexibility to invest in projects that support visitors and local communities.
The extended consultation will now include additional questions on the potential flat-rate option, alongside existing questions on a percentage-based levy, to help the Council understand views on the most appropriate and practical approach for Fife.
Councillor Altany Craik, spokesperson for finance, economy and strategic planning, said: “We know there are very mixed views on the introduction of a visitor levy, and it’s important that we take the time to fully understand the implications of different approaches.
“The extension of the consultation allows us to gather informed feedback on the potential flat-rate option that is being taken forward nationally, alongside the percentage-based model already set out in legislation. This will help ensure any future decisions are based on robust evidence and a clear understanding of local views.”
The consultation is online at www.fife.gov.uk/visitorlevy. The council will also host a series of online information sessions in early 2026 which will provide an overview of the levy.