Glasgow City Council has agreed to introduce a tourist tax which would raise £16m a year that it promises to invest in public services.
The 5% tax is set to be charged on hotel bookings from January 2027, equating to an average charge of £4.83 per night.
It will apply to hotels, hostels, guest houses, B&Bs and self-catering accommodation.
Revenue used to improve critical services that will benefit residents and visitors. These include street sweeping, investing in city landmarks, and tidying up parks.
City treasurer Ricky Bell said he and leader Susan Aitken “had been lobbying the Scottish Government for some time to give us more powers to be able to raise our own revenues and this is the start of what I hope will be a continuation of those powers being devolved to local government.”
It has been proposed that operators retain 1.5% of the amount collected to cover costs. Organisations who fail to comply will face penalties.
Glasgow Green councillors attempted to amend the scheme to include stronger penalties for non-compliance and capping how much was spent on marketing. However, these were voted down by the SNP, Labour, & Conservative councillors
Green councillor Blair Anderson, whose motion started the process, said: “The tourist tax is going to be a game-changer for Glasgow, delivering more money to tidy up our city and make it even more attractive for visitors and residents alike.
Scottish Greens MSP for Glasgow, Patrick Harvie said: “Glasgow is a global city, drawing visitors from all over the world. But we have seen how over-tourism can damage communities, like in Venice and Barcelona, where the residents end up paying the price.
“The tourist tax is vital to delivering sustainable tourism where local residents feel the benefit of our tourism and events sectors. I’m delighted that Glasgow is continuing to benefit from Green policy in action.”
However, Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers said: “Glasgow City Council’s decision to proceed with a 5% tourist tax is deeply concerning and risks undermining the city’s fragile tourism economy at a time when operators are already grappling with increasing costs, regulatory burdens and reduced bookings.
“While we recognise the desire to secure sustainable funding for the visitor economy, the approach approved today stands in stark contrast to the more balanced and pragmatic positions adopted by local authorities in Ayrshire and the Western Isles. These councils have rightly prioritised local consultation and economic impact over political expediency.
“We are particularly concerned by the cumulative impact this levy will have on smaller self-catering businesses and the lack of clarity around how the significant estimated costs – nearly £1 million annually – will deliver real value to tourism stakeholders.
“While allowing operators to retain 1.5% to cover costs is a step in the right direction, the mechanism still places significant administrative and financial burdens on accommodation providers without adequate safeguards
A South Ayrshire tourist tax has been put on the back burner, but councillor Alec Clark believes that despite the nature of the tax offered by the Scottish Government, a visitor levy is inevitable.
South Ayrshire Council’s cabinet heard that a visitor levy of between 1% and 5% would bring in between £400,000 and £2m a year at most.
However, significant upfront costs, a lack of definite cash benefits and the opposition of major tourism groups, led to officials recommending a two year pause.
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