A consultation on a potential tourist tax has been approved in Argyll and Bute, set to run from January to March 2025.
The consultation will seek input from local communities and business owners on the support they would need if a visitor levy were introduced.
It will also gather opinions on the proposed tax rate, with a suggestion of a 5% levy on the cost of an overnight stay.
Key questions will focus on whether a tourist tax in Oban should charge per person, per night, with the potential for the levy to add hundreds of pounds to the total cost of a stay, particularly for families and groups.
Any funds raised through the tourist tax will be reinvested to manage the impact of tourism, with the council arguing that 20 times the population of the area visit every year using roads and amenities.
Following the consultation, Argyll and Bute councillors will decide whether to move forward with implementing the tourist levy scheme.
If approved, a tourist tax could not be implemented before January 2027 due to the necessary steps required to introduce the scheme.
At a meeting of the council held today, councillors were told the levy has the potential to bring in an estimated £9 million a year.
‘Tourist tax will be the final nail in the coffin of the hospitality industry’
While Argyll and Bute Council says the levy has the potential to bring “millions of pounds of investment” to the local tourism industry, some business leaders say it will be the death of overnight stays in Argyll – and that businesses might close.
After the decision was made, The Press and Journal spoke to one business owner who runs hotels and guest houses in Oban. He didn’t want to be named as he’s “keeping his powder dry”.
He said: “A tourist tax will close and unsettle businesses and turn off visitors from staying overnight in Oban.
“Without people staying overnight there will be no need for the many places to eat and drink we have in Oban.
“A tourist tax is short-sighted and not the right time, so soon after Covid.”
Another businessman who runs hotels, restaurants and self catering accommodation said: “If a tourist tax levy is implemented it will be the final nail in the coffin of the hospitality industry.
“Our rateable value has increased this year, National Insurance is going up by 3% and the impact of Covid is still very raw.
“We are being made to look like the bad people for not accepting this. But I put my money on the fact that businesses will close, and Argyll and Bute Council will be much worse off.”
He added: “It is a disgrace if there is a tourist tax, and that is exactly what it is – not a levy. This is a tax on tourists, and they will stop coming. Even the administration of this tax is going to cripple businesses.”
‘I would encourage everyone to get involved in the consultation’
The Scottish Tourism Alliance remains opposed to the visitor levy across Scotland, including the one in Oban.
At the meeting, Oban area leader Julie McKenzie called for assurances that, if the consultation is approved, members would only proceed with approving any levy after hearing from all communities, residents, and visitors, ensuring that the levy would be beneficial to Argyll and Bute.
Representing businesses in Oban, Andrew Spence – the Bid4Oban business improvement scheme chief executive – said: “We will take our lead from what our membership says.
“I would encourage everyone to get involved in the consultation.
“It is important that we know what the revenue will be used for, as this will impact people’s decisions about supporting the levy or not.”
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