Consultation which could see a tourist tax being introduced in Fife is to take place.
Fife Council has agreed to investigate the possibility of introducing a visitor levy and is set to consult with communities and businesses over the next few months.
The Visitor Levy (Scotland) Act 2024 allows local councils to charge a percentage rate on accommodation within the scheme’s area. There is flexibility over whether the charge applies to all or part of the local council area, whether it is charged for all or part of the year and can change depending on the purpose of the visit.
A report to councillors at the local authority's Cabinet Committee on Thursday said early research showed that a visitor levy scheme charging five per cent could generate between £3.4m and £8.2m each year.
The consultation is the start of a lengthy process. No decision on the introduction of a visitor levy would be taken before August 2026 at the earliest.
READ MORE: Fife Council consider following Edinburgh on tourist tax
There would then have to be a minimum of an 18-month period between announcement and the scheme coming into effect so the earliest possible implementation date, at present, would be April 2028.
Council Leader David Ross explained: "Tourism is an important industry for the Kingdom. There are very mixed views on the introduction of a visitor levy.
"There's also lots to learn from others who have already introduced these schemes. So we will be taking the time to make sure we gather all the views and have all the facts and evidence in front of us before we make any decisions on this."
Following the latest development, Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, has warned that Fife Council must "tread carefully" with their plans given the importance of tourism to the local economy and they simply cannot afford to make mistakes.
"If taken forward, it needs to be right from the very outset and they must be open about who will be charged – it won’t just be foreign visitors but ordinary Scots staying in the area, including Fifers themselves.
"The ASSC has major reservations about the introduction of a tourist tax both in Fife and elsewhere in Scotland. A VAT-attributed percentage rate is overly complex and costly for accommodation providers.
"Fife Council should therefore take stock and pause any further plans until the government reviews and amends its legislation.
"Rushing such an important decision will benefit no one, as seen with the significant unease with Edinburgh Council’s fast-tracked efforts which risks operational failure and reputational harm."
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