Highland Council is preparing to launch a public consultation on a proposed visitor levy that would charge £5 per room per night for hotel stays, bed and breakfasts, and short-term rental accommodation across the region. The charge for hostels and campsites would be set at £2 per night. If implemented, the scheme could generate approximately £9.5m annually to fund infrastructure improvements such as road maintenance and upgrades.
The council has been exploring a tourist tax option for seven years, with the latest proposal now moving toward formal public engagement. According to Highland Council's announcement, a special meeting scheduled for 25 August 2026 will consider the draft scheme, and if approved, a statutory 12-week public consultation would follow.
The proposed levy would apply across the entire Highland Council area for nine months annually, with December, January and February excluded from the charge. Accommodation providers would retain 5% of collected revenue to offset their administration expenses. The Highlands attracts nearly 9.4 million visitors annually, making it a significant tourism destination.
Why the timing matters now
The council's ability to proceed with this specific proposal follows recent changes to Scottish legislation. New regulations that came into force on 22 July 2026 amended the Visitor Levy legislation, allowing councils to choose between a percentage-based charge and a fixed amount. Highland Council has opted for the fixed-rate model rather than a percentage approach.
Council leader Raymond Bremner, an SNP councillor, described the authority's efforts to introduce such a charge as having been ongoing for a considerable period. He stated that public support for the levy exists among most Highland residents and moved a motion backing the consultation process. The motion passed despite amendments from other political groups.
What concerns have been raised?
Scottish Green Party councillor Chris Ballance acknowledged that the levy could generate essential funding for social housing but expressed concern that lower-income families visiting the Highlands might bear a disproportionate burden compared to visitors able to afford premium accommodation.
Liberal Democrat councillors tabled an amendment seeking clarification that Highland residents would not face charges when visiting other parts of the region. They argued that residents should not pay an additional tax and highlighted a practical concern: people travelling to Inverness for NHS appointments would otherwise need to reclaim expenses from NHS Highland. This amendment did not secure sufficient support.
Scottish Conservative councillors proposed delaying the consultation decision pending results of an economic assessment expected within weeks. They warned the assessment might reveal negative impacts on tourist numbers and raised the possibility of legal challenges from tourism businesses. This amendment also failed to gain backing.
What does the tourism industry say?
Before the council meeting, the Highland Hotel Association (HHA) signalled opposition to the £5 rate, proposing a lower charge of £3 instead. The association cited challenging trading conditions, noting that summer occupancy rates across the region have fallen by 10% compared to the previous year while operating costs continue to climb.
HHA chairman Craig Ewan stated:
Our message to Highland Council is clear: it is not 'no' to a visitor levy, but 'not now'. The industry is battling a perfect storm of soaring operating costs and weakening demand.
How does this compare to other Scottish cities?
Highland Council's proposal follows action taken elsewhere in Scotland. Edinburgh introduced a 5% visitor levy on overnight accommodation earlier in summer 2026, becoming the first Scottish city to implement such a charge. That scheme is expected to raise approximately £50m annually, with revenue directed toward new housing, cultural initiatives and expanded police presence.
Glasgow is scheduled to introduce a similar 5% levy from January 2027, while Aberdeen plans to implement a 7% charge from April 2027 at the earliest. In contrast, the Scottish Borders, Dumfries and Galloway, Orkney and Shetland have all rejected visitor levy proposals.
What happens next
If Highland Council approves the draft scheme at its 25 August 2026 meeting, the formal 12-week public consultation period would commence. This consultation phase will allow residents, businesses, and visitors to submit feedback on the proposed rates and implementation details before any final decision is made.
The council has committed to conducting as wide a consultation as possible, according to council leader Bremner, ensuring that all stakeholders have an opportunity to contribute to the discussion about how the levy should be structured and applied.
