Aberdeen City Council is pressing ahead with plans for a visitor levy for tourists staying overnight in the Granite City.
The move would result in an extra £5 being added on top of an average hotel room priced at £70.
This 7% tax would be in place across the whole city all year round and is expected to raise around £1.6 million annually.
Councillors have agreed to launch talks on the scheme, giving residents and local businesses the change to have their say on it.
Should everything go to plan, it is estimated that the levy could be in place by April 2027 at the earliest.
And some ideas have already been raised on how it could be spent to benefit Aberdonians – with replacement Christmas lights being one option, and upgrades to the Winter Gardens at Duthie Park.
Why is there a need for a visitor levy in Aberdeen?
The Visitor Levy (Scotland) Bill was passed in May last year, allowing councils across the country to charge a fee or tax on overnight stays.
Back in August, council officers were asked to develop a scheme for the city.
They argued it would help Aberdeen become a “leading visitor destination” and enable it to compete with other cities across the world.
A proposal was put together in collaboration with VisitAberdeenshire, P&J Live, VisitScotland and the Aberdeen City and Shire Hotels Association.
Edinburgh and Highland councils have carried out online consultations on their own visitor levy, and Aberdeen will now follow suit.
Who would pay the tourist tax?
The so-called tourist tax would apply to all overnight accommodation in the city including hotels, hostels, guest houses, B&Bs and self-catering lets.
Camping sites and caravan parks would also charge the levy fee.
Exemptions would be made for those who are homeless, asylum seekers and refugees, and those who get benefits, payments or allowances for disabilities.
Those who are travelling to the city for medical appointments would also be excluded from paying the levy.
Levy would ‘put Aberdeen on the map’
The matter went before members of the finance and resources committee today.
Councillor Alex McLellan welcomed the move and believed the tourist tax wouldn’t put people off visiting the city.
He also thought the levy had the potential to grow the existing tourist offering and “put Aberdeen on the map”.
The SNP member added: “There is a real opportunity for us to get ahead of the game with regards to other cities in Scotland and the UK, and ensure that we drive people and growth to the city.
“The idea of £5, the price of a coffee, that’s not going to deter travellers from coming here.
“We need to go out and hear what businesses have to say and explore the possibilities because there is a real opportunity here that shouldn’t be missed.”
‘This is not the right time for this’
But, his colleague councillor Richard Brooks wasn’t so enthusiastic. He pointed out that the 7% levy is higher than the 5% applied to hotel stays in Edinburgh.
He questioned the poor timing of the debate and suggested it was “rude” to consider another tax.
The Conservative member explained: “You say the tax will stimulate tourism, that speaks to me of being completely deluded – this is another tax on people.
“I don’t want to portray the city council as the Grim Reaper, but the timing of this is questionable.
“Council tax will rise shortly, there are additional restrictions to cars with LEZ and bus gates.”
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Mr Brooks added: “Businesses have said in the bus gate consultation that they are holding on for dear life or have indeed gone to the wall.
“Now we are announcing today, in amongst all this, that we are going to have a tourist tax on an already expensive city.”
He bluntly added: “This is not the right time for this.”
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