An Inverness hotelier has told how a proposed tourist tax keeps him awake at night as he fears additional costs will put visitors off.
Kingsmills Hotel Group chief executive Tony Story is “very concerned” about the visitor levy which could soon be introduced.
New legislation means local councils are able to impose an added fee for stays in hotels and bed and breakfasts, self-catering accommodation and campsites and caravan parks from 2026.
Highland Council is currently undertaking a three-month consultation process with businesses and individuals.
It said money raised from the levy would go towards improving infrastructure across the region, such as roads.
‘It’s what keeps me awake at night’
Mr Story believes the new tax could see room prices rise by 12% in the capital of the Highlands and is “born out of desperation”.
He said: “The visitor levy is the major thing which keeps me awake at night, I feel very concerned.
“It was thought up pre-Covid with growing occupancies. Inverness was the only principle city in Scotland which didn’t grow occupancy in 2024.
“Do we then add a further price increase? Tour operators already say it’s too expensive here and are moving out because of it.
“We shouldn’t be saying to them, ‘we appreciate it’s too expensive but we’re going to add another 10% onto that’. They won’t come back.”
Kingsmills Hotel Group owns Ness Walk and Kingsmills Hotel in the city.
Mr Story is also concerned about how far the money will actually go to improving infrastructure, and is also worried it will deter outside investment.
In 2019, Highland Council calculated it could generate as much as £10 million a year from a levy.
He added: “If you think about the figures being thrown around for dualling a wee bit of the A9 and try to put the £10m into perspective, it is nothing.
“We’re a region the size of Belgium. If we introduce a levy, which is inevitable in my eyes, we’re going to have to get to grips with campervans.
“The idea it would be voluntary for campervan users is only going to cause more anger across the North Coast 500.”
Inverness tourist tax could ‘improve life’ for locals
Triquerta Crafts owner Marnie Mackenzie is in favour of a visitor levy – if the money was spent in the right places.
The owner of the Victorian Market shop said: “When you go abroad you don’t really think about it, you just pay it. The streets are clean and everything looks really nice.
“I don’t see why we can’t have something similar, the resources aren’t there at the moment so I can see the point of introducing the levy.
“If you look at the potholes in roads and the lack of bins just as examples – if it could be spent on those then it would improve life for those who are here all year round as well.
“People save up a lot of money to come to the area and they won’t be put off . If they’re going to come, they’re going to come regardless.
“Especially with so many countries already having this, it’s not something brand new.”
Meanwhile, Inverness Taxis boss Gavin Johnston feels an increase in price could drive those on a budget to stop spending at local businesses.
He said: “Increasing the cost to come here is probably not the best idea.
“If you go to a cinema and a ticket costs £20, but another only charges £15m you know where you’re going to go.”
Chance to put forward thoughts
Highland Council is now preparing to introduce a visitor levy across the Highlands, with consultations to be completed in the final quarter of this year.
Economy and infrastructure committee chair, councillor Ken Gowans, said: “The levy would form an essential part of how we sustain, maintain and develop the services and infrastructure which the sector relies on.
“The upcoming consultation will give everyone the opportunity to put forward their views on how a levy scheme should operate. And what the proceeds should be spent on.”
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