The Highland Council has announced plans to introduce a 5% tourist tax on overnight stays starting in autumn 2026, potentially adding over £100 to the cost of a family holiday. The initiative aims to generate £10 million annually to fund infrastructure improvements, including roads and public facilities.

The tax, subject to VAT, will apply to all visitors, including Scots traveling for personal reasons like hospital visits, with limited exemptions. Local businesses, particularly hotels and self-catering providers, have expressed concerns about the financial burden on tourists and the potential impact on bookings.

Hotel and B&B operators, who would be responsible for collecting the levy, fear significant downturns, particularly during the critical summer season. Business groups warn of added strain on small enterprises already grappling with economic challenges.

While the levy excludes cruise ship visitors and motorhome travelers, Highland Council has hinted at the possibility of increasing the rate beyond 5% to fund more ambitious projects. The proposal follows the recent approval of the Visitor Levy (Scotland) Act, granting local councils authority to implement such charges.

A public consultation on the matter is ongoing, with feedback set to influence final decisions in March 2025.