Highland Council Moves Closer to Visitor Levy, But Self-Caterers Want the Maths Done First

Highland Council is pushing ahead with its visitor levy scheme, and the Association of Scotland's Self-Caterers has cautiously welcomed the direction of travel. The welcome comes with a condition, though: show us the economic evidence before councillors vote.

Highland Council is set to hold a special meeting on Tuesday 25 August to consider its draft visitor levy scheme, a charge on overnight stays that would make the Highlands one of the first Scottish regions to implement powers granted under the Visitor Levy (Scotland) Act 2024. The Association of Scotland's Self-Caterers (ASSC) has acknowledged genuine progress in how the Council has shaped the draft, but is calling on elected members to commission a full economic impact assessment before any final decision is taken.

The ASSC's concern is straightforward: Scotland's self-catering sector is not a monolith. A levy that makes commercial sense for a city-centre Edinburgh hotel looks very different when applied to a remote Highland cottage that earns its owner a modest seasonal income. According to the ASSC, which represents thousands of short-term let operators across Scotland, the draft scheme has improved since earlier iterations, but the absence of rigorous, independent economic modelling remains a serious gap. Without it, councillors are being asked to vote on a policy whose commercial consequences for rural hospitality businesses are, at best, estimated.

The Visitor Levy (Scotland) Act, passed by the Scottish Parliament in May 2024, gives local authorities the power to charge visitors for overnight stays, with revenue ring-fenced for tourism-related spending in the area. Edinburgh City Council has already signalled its intention to introduce its own scheme, and other councils are watching the Highlands process closely. How Highland Council handles the evidence question will likely set a precedent for how the rest of Scotland approaches implementation.

The stakes are real. VisitScotland figures consistently show that rural tourism contributes hundreds of millions of pounds annually to Highland and Island economies, and a significant share of that flows through small, owner-operated accommodation businesses rather than large hotel groups. Research published by the University of Strathclyde's Fraser of Allander Institute has previously highlighted the sensitivity of Scottish tourism SMEs to pricing pressures, particularly in shoulder seasons when occupancy rates are already under strain. A levy set at the wrong level, or introduced without adequate transition support, could suppress bookings at precisely the businesses councils most need to keep viable.

The ASSC is not opposing the levy in principle. The organisation has consistently said it can accept a well-designed scheme built on solid evidence, one that invests meaningfully in the destinations it draws from. What it cannot accept, and what it is pressing Highland Council to avoid, is a charge set by instinct rather than data. The call for an independent economic impact assessment is not obstructionism; it is the minimum standard of governance any SME owner would expect before a new cost is added to their business model. If Highland Council commissions that work and the numbers stack up, the path to a fair, workable levy becomes significantly cleaner for every Scottish council that follows.

What this means for you: If you run a short-term let, self-catering property, or any hospitality business in Scotland, visitor levy schemes are coming to your area whether or not you are in the Highlands. Check what Highland Council publishes after the 25 August meeting, because the framework it adopts will likely shape Edinburgh's and other councils' schemes. Get involved through the ASSC or your local hospitality association now, while the consultation window is open and before rates are set in stone.