ScottishNews.com

New figures produced for Fife Council estimate accommodation businesses across the area could collectively spend around £630,000 setting up a visitor levy, followed by another £550,000 every year in ongoing administration costs.

Large hotels could face individual costs of £20,000 or more to modify booking and accounting systems and train staff to collect the new charge.

Smaller hotels and campsites could spend between £3,000 and £10,000 getting ready for the levy, while B&Bs and short-term let operators could face annual running costs of between £100 and £400.

The figures offer a glimpse of the costs facing Scotland’s hospitality industry as increasing numbers of councils introduce charges on overnight stays.

Edinburgh became the first part of Scotland to operate a visitor levy when its 5% charge came into effect on 24 July.

Glasgow will introduce a 5% levy from 25 January 2027, while Aberdeen has approved a 7% charge from 1 April 2027.

Stirling will introduce a 3% levy from 14 June 2027 and West Dunbartonshire has approved a 5% charge from 1 July 2027.

Fife has yet to decide whether to introduce its own scheme.

Councillors are being asked to approve a 12-week public consultation, with council officers favouring a fixed nightly charge rather than a percentage of the accommodation price.

If ultimately approved, a Fife visitor levy could be introduced from early 2029.

Council modelling suggests adding £2.50 to an overnight stay could generate around £4.1 million a year after administration costs. A £5 charge could raise around £8.6 million annually.

Under the proposals considered in Fife, accommodation businesses would be allowed to retain 5% of the levy income they collect to help cover their costs.

The charge could apply to guests staying in hotels, guest houses, B&Bs, static caravans and self-catering properties, including short-term lets.

Motorhomes, touring caravans and tents would not be included under the option currently being considered.

Fife residents would also have to pay the levy if they booked eligible accommodation elsewhere in the council area. The money raised would have to be reinvested in facilities and services used by visitors.

Potential priorities identified in Fife include roads, parking, public transport, public toilets, signage, paths, town centres, coastal areas and other tourism infrastructure.

Fife attracts almost five million visitors a year, with tourism estimated to generate £956 million for the local economy and support 12,588 jobs.

Opinion on a tourist tax remains closely divided. A Fife questionnaire carried out between November 2025 and January 2026 found 47% supported introducing a visitor levy, compared with 45% who opposed it and 8% who were undecided. Support was lower among businesses and visitors.

The Scottish Government has previously acknowledged that accommodation providers could face added costs when councils introduce levies.

Its original impact assessment estimated a typical small or medium-sized hotel could face initial compliance costs of between £3,000 and £10,000, including changes to property management systems and staff training.

Ongoing administration was estimated at around £300 to £400 a year for a typical hotel, although ministers stressed that actual costs could vary substantially depending on the business and the design of each local scheme.

Unlike a single national tourist tax, Scotland’s system allows individual councils to decide whether to introduce a visitor levy and how their scheme should operate. Accommodation providers are responsible for collecting the money from guests before passing it to the relevant council.

Businesses in Edinburgh retain 2% of the levy they collect to help meet their costs, while Glasgow and West Dunbartonshire will allow providers to keep 1.5%.

With more councils considering schemes of their own, the Fife figures underline that the cost of Scotland’s tourist taxes will not only fall on the visitors paying them.