Elected Member Briefing - Draft Visitor Levy Scheme development interim update

To provide an update on activity in relation to progressing the preparation of a draft visitor levy scheme for Perth and Kinross ahead of consideration of the proposals which will be contained in the full paper to Council at its meeting in June. This is as instructed by the decision of Council at its meeting in February.

This briefing note highlights that several additional pieces of information and investigation are still ongoing to inform the final report. To ensure the full intent of the Council's instruction is met, an elected member briefing session has been arranged for 11 May. This session will provide an update on these extra elements and offer an opportunity for questions and discussion, helping to influence the proposals that will be brought forward for consideration in June.

Briefing Information

Early engagement activity and outcomes

In February 2025 Council agreed to start early engagement with residents, businesses and visitors to understand whether and how a visitor levy should be implemented in Perth and Kinross. This approach is in line with the Visitor Levy Guidance published by the Scottish Government which set out that while not mandatory, early-stage engagement to help inform the development of any draft scheme was considered to be best practice. This engagement activity took place between 2 June 2025 and 30 September 2025 through an online survey and a range of targeted and drop-in sessions.

A total of 1,590 responses were received via the online survey, with many of the in-person session participants also having submitted their views via the survey. In addition, market research was carried out with visitors to the area on behalf of the Council by a market and social research firm. This took the form of trained interviewers carrying out face-to-face interviews in visitor-frequented locations, including Pitlochry High Street and Perth Museum. A total of 132 responses were gathered through this process.

All of the data received has been analysed by an independent market research company (a separate company to the one which undertook the face-to-face interviews to prevent unintended bias) with the feedback being used to develop a draft visitor levy scheme for the Council to consider in June.

The key themes from the early engagement process highlighted concerns about a number of elements of any prospective scheme:

the complexity of a percentage rate scheme, with preferences expressed for a fixed rate approach
the impact of additional income from a visitor levy on whether a business meets the VAT threshold
the impact on price competitiveness and price sensitivity
the administrative burden and costs of the collection system
understanding where exemptions could and would be applied
how funds raised via a visitor levy would be used
ensuring clear governance and transparency over the collection and allocation of those funds

What's changed since the early engagement activity

As highlighted in the update report to Economy and Infrastructure Committee in November (Report 25/312) the early engagement activity was carried out before proposals contained in the Visitor Levy (Scotland) Amendment Act were introduced.

The new legislation, which was passed on 24 March and will come into force in June 2026, provides additional flexibility for local authorities to use different models for applying a visitor levy. New possible options address key concerns raised during the early engagement. These changes allow councils to introduce a levy based on:

a fixed rate per night, or
a tiered fixed-rate structure, or
a percentage-based levy (as set out in the original legislation).

How this is shaping the proposals for Council in June

Given the concerns raised during the early engagement about a percentage-based levy, officers are intending to propose a draft visitor levy scheme based on either a fixed rate per night or a tiered fixed-rate structure. Further analysis of the impact of a tiered fixed-rate structure is currently underway, and an update will be provided as part of the 11 May briefing on the findings of this, with elected member feedback from that session helping inform which of the two form the final recommendation to Council in June. However, current thinking is that the fixed rate per area/unit per night model has the advantage of answering the concerns raised in early engagement and being simpler to explain to visitors. The levy would be paid at the point of purchase.

The legislation does not allow for a levy per person per night model, and therefore this option is not available for consideration.

Proposed exemptions to the scheme

There are a number of statutory exemptions to the scheme, including: any persons for whom the accommodation is the person's only or usual place of residence, whether temporary or otherwise. This includes, but is not limited to:

individuals whose homes are unfit or unsafe for habitation, including those experiencing domestic abuse or other forms of violence
refugees and asylum seekers
people who are homeless or at risk of homelessness
members of Gypsy/Traveller communities staying on dedicated sites
individuals in receipt of qualifying benefits/allowances:
- Disability Living Allowance (DLA)
- Disability Assistance
- Attendance Allowance
- Pension Age Disability Benefit
- Personal Independence Payment (PIP)
- Adult Disability Payment (ADP)
- Pension Age Disability Payment (PADP)
- Scottish Adult Disability Living Allowance (SADLA)
- Carer's Allowance
- Carer's Element of Universal Credit

Individuals who are exempt or excluded from paying the levy may be required to pay the levy at the point of purchase and subsequently apply for reimbursement from the Council administering each levy scheme unless the accommodation has been arranged and paid for directly by the Council.

The following types of accommodation or stays are also exempt:

local authority Gypsy/Traveller sites and registered social landlord Gypsy/Traveller sites
accommodation provided in a vehicle or vessel undertaking a journey involving one or more overnight stops (including motorhomes and campervans)
accommodation provided free of charge
seasonal pitches on caravan sites unless the pitch is sub-let to another visitor for an overnight stay.

Accommodation providers may also apply for a discretionary site-based exemption where:

the property is occupied by a charity or a trustee of a charity, and
overnight stays are wholly or mainly for charitable or educational purposes.

Discretionary exemptions

In addition to these exemptions the Council may decide to implement other exemptions as part of the introduction of any future visitor levy scheme. As part of the draft scheme being developed it is currently intended to recommend an exemption for Perth and Kinross residents.

This would recognise that residents of Perth and Kinross already contribute to the provision of services that they would receive as a visitor to a different area through Council Tax payments and year-round contributions to the local economy. It also encourages local spend and reduces concerns raised through the early engagement with elected members and others that residents from one part of Perth and Kinross may need to stay in overnight accommodation ahead of or following a medical appointment. An all-residents exemption would mean that people in that situation are not being asked to disclose sensitive medical appointment information to qualify for an exemption.

Economic impact analysis of the draft scheme

Work is underway on an externally commissioned economic impact analysis of the draft visitor levy scheme, the results of which will inform the final report to Council in June. While it has not been possible to have this in time for this briefing note, the outcomes from the analysis will be part of the updated information provided at the elected member briefing session in May.

Next steps

Elected member briefing session on 11 May, which will include a presentation on the draft scheme, including the economic impact analysis and details of how the early engagement feedback has helped to shape the scheme. This will provide an opportunity for elected members to provide feedback to shape the final version of the report to Council in June.
Report to Council on 17 June, presenting an updated draft Perth and Kinross Visitor Levy Scheme, the economic impact analysis of the scheme and the early engagement results report. The report will seek approval of Council for the draft Visitor Levy Scheme, and if approved to proceed to the formal consultation stage for a minimum of 12 weeks.
If Council decides to proceed to formal consultation on the draft scheme, the results of that engagement period would then require to be reported back to Council for review and for a final decision on whether to adopt a Visitor Levy in Perth and Kinross.

Last modified on 29 April 2026