Visitor Levy (Amendment) (Scotland) Bill: island communities impact assessment
Island communities impact assessment (ICIA) for the Visitor Levy (Amendment) (Scotland) Bill.
Step Two – Gather your data and identify your stakeholders
Following the introduction of the 2024 Act, island councils have undertaken various consultations and feasibility studies regarding the introduction of a percentage-based model visitor levy scheme. Orkney Islands Council, Shetland Islands Council, Comhairle nan Eilean Siar and Argyll and Bute Council have decided to pause or reject proposals to introduce a visitor levy scheme.[1],[2],[3],[4] Highland Council has also paused its plans to introduce a visitor levy scheme after the Scottish Government announced that the Visitor Levy (Amendment) (Scotland) Bill would be introduced in 2026.[5] The Scottish Government understands that North Ayrshire Council has not yet confirmed whether or not it will proceed with introducing a visitor levy scheme. Island councils may, in future, reconsider their decision within the context of the additional flexibility that the Visitor Levy (Amendment) (Scotland) Bill provides.
The ICIA published alongside the 2024 Act confirmed that the proportion of self-catering accommodation in Eilean Siar is slightly higher than in Orkney or Shetland (93.8% compared to 89.2% and 87.7% respectively. The proportion of hotels is higher in Shetland (7%) and Orkney (6.9%) than in Eilean Siar (3.1%). The proportion of guest houses is smallest in Eilean Siar (3.1%) and largest in Shetland (5.3%). In terms of the size of the accommodation industry in island councils, Eilean Siar has a notably higher percentage of accommodation businesses as a proportion of the total number of businesses in its area (4.4%), compared to the national average of 1.7%.
The Visitor Levy (Amendment) (Scotland) Bill itself will have no differential impact on island communities compared to the mainland. It gives all councils, including island councils, greater flexibility regarding the model of visitor levy they can choose to introduce should they decide to do so. The provisions of the 2024 Act allow councils to apply a visitor levy to all or parts of an area and this geographical flexibility may mitigate differential impacts of island communities.