Highlands council planning 5 per cent tourist tax for anyone staying overnight

Shieldaig Lodge is a hotel in the Scottish Highlands
The Highlands get more than six million visitors a year

Visitors to the Scottish Highlands could be forced to pay a five per cent tourist tax on their accommodation.

The Highlands get more than six million visitors a year and the area’s attractions include the Cairngorms National Park, the North Coast 500 tourist route, Skye and beaches along more than 3,000 miles of coastline.

The council believes an estimated £10 million could be raised each year by the tax and used to improve tourist infrastructure, including roads, which are under huge pressure.

A report will be considered by councillors next week proposing a scheme that would apply to all types of accommodation with no exemptions for local people, including reasons such as hospital visits.

The councillors will be asked to approve a 12-week consultation, starting next Friday, before they make a final decision whether to press ahead next spring. The charge could come into force from autumn 2026.

View of Ben Stack mountain peak from West, Scotland
The council believes an estimated £10 million could be raised each year by the tax - ValeryEgorov

However, businesses have expressed concerns the tax could deter tourists from visiting the Highlands and how fairly the revenue will be distributed.

The SNP’s Visitor Levy Act gives Scottish councils the power to impose a tax on stays in any form of overnight accommodation. Providers are liable to pay the sum but they can pass on the cost to their guests.

Scottish ministers pressed ahead with the tax despite opposition from 63 per cent of organisations that responded to a public consultation on the plan.

They argued similar levies are in place across Europe, including tourist hotspots such as Amsterdam and Berlin.

If approved, the Highlands would follow Edinburgh to become the second part of the country to introduce the tax. Edinburgh city council is also proposing a five per cent charge, which would be introduced in summer 2026.

Skye road bridge linking the isle of Skye with mainland Scotland looking towards the Cuillin mountain range
The tourist tax would be used to improve tourist infrastructure, including roads - lucentius

It is expected to generate between £45 million and £50 million per year by 2028/29, with the city council promising the money will be spent on services that “enhance visitor experiences”.

Councillor Ken Gowans, who chairs Highland Council’s economy and infrastructure committee, said: “Tourism is one of our most important sectors and the levy could form an essential part of how we sustain, support and develop the services and infrastructure which the sector relies on.”

He told BBC Scotland News that some of the money could go towards fixing potholes, which plague the region’s roads.

Frazer Coupland, chief executive of Lochaber Chamber of Commerce, said the extra funding was “exciting” but businesses were concerned about how the charge would be collected and how fairly the funds raised would be dispersed.

Woman hiking the trail to a mountain called Bynack More, beside Strath Nethy, in the Cairngorms National Park, Scotland
If approved, the Highlands would follow Edinburgh to become the second part of the country to introduce the tax - lucentius

He also said the consultation needed to address whether people travelling from rural areas for hospital appointments would be charged the visitor levy for their overnight stays.

Nagina Ishaq, general manager of the Loch Ness Centre, said: “The proposed visitor levy in the Highlands has the potential to bring about significant challenges to the tourism sector.

“There are concerns among businesses that this could have a major impact on visitor numbers and operating costs. The levy must be carefully managed, with clear transparency to ensure funds are reinvested directly into tourism infrastructure.”