Millions of UK tourists could face a new tourist tax as councils seek to fund services
Tourists visiting the UK could soon be asked to pay local visitor fees as councils consider introducing accommodation charges to support over-burdened services.
This move follows similar steps in European destinations such as Berlin and Barcelona and aims to address the challenges posed by record visitor numbers in popular destinations.
Almost half of Scotland’s local councils, including the Highlands, Orkney, and Western Isles, assess tourist tax. The Highland council has begun consultation on a 5% overnight occupancy tax, which could raise £10 million a year to improve infrastructure and services. Edinburgh will lead the UK through a compulsory tax in July 2026, which is intended to generate £50 million a year.
In Wales, the government plans to unveil proposals for a tourist tax to support tourism and local services, with a focus on hotspots such as Gwynedd, Pembrokeshire, and Cardiff.
The chairman of the economy at the Highland council, Ken Gowans, emphasized that it must be sustainable tourism, saying, “Aging is not caused by the citizens, but they pay with the council tax. If we have this money, we can maintain and improve the facilities for tourists and residents alike.”
Extreme tours feature destinations such as the legendary Lakes of Skye, the North Coast 500 route, and Orkney’s Neolithic sites. Travel guide Fodor’s recently put the North Coast 500 on its “No List” list because of its reputation for conflict, closed roads, overcrowded campsites, and environmental concerns.
In the Lake District, research has suggested introducing a charge for overnight stays or car use to reduce the environmental burden on the national park, which hosts 18 million visitors a year but has only 40,000 residents.
While some industry leaders, including VisitScotland, are promoting the tax as a way to invest in sustainable tourism, others warn it could deter visitors. Critics, including hoteliers in Inveraray, have labeled the tax “fiscal suicide,” saying it could reduce spending and increase administrative burdens.
However, Michael Hill, CEO of Friends of the Lake District, said similar taxes in Europe have boosted destinations. “We are not anti-tourist people. In many cases, the number of tourists increases after the introduction of the tax because the area improves,” he said.
As councils across the UK move closer to implementing tourist taxes, they aim to balance the needs of local communities with those of tourists. By reinvesting revenue into infrastructure, taxes can support sustainable tourism while ensuring the long-term benefits of popular destinations.
