Councillors have narrowly agreed to press ahead with plans to consider implementing a new tourist tax in Moray.
Officials will now investigate what level of extra charge they could impose on overnight visitors.
This is despite a number of councillors raising concerns over the impact a levy could have on business and tourism in the region.
Councillors tussled over dissuading future visitors to Moray versus the potential for extra revenue to improve services.
What would a tourist tax entail?
Last year the Scottish Government gave powers to local authorities to implement a extra charge on people staying in overnight accommodation.
This charge would be a percentage of the cost of a stay and will be paid by the business providing the accommodation.
This charge will then be used for “developing, supporting and sustaining facilities” used by visitors to improve the overall visitor experience.
When could it be implemented?
The council has agreed to spend £15,000 to complete initial research on proposals.
This would uncover the current situation of accommodation in Moray and provide an estimate of how much revenue a levy could potentially generate.
Providing the visitor levy jumps a number of legislative hurdles, the earliest date a levy would be fully operational would be August 2027.
However, implementation of the new levy could start as early February of next year.
Moray Council will also set up a working group of councillors, officers and representatives to oversee the implementation of the scheme.
Are other areas considering a visitor levy?
Public consultation is underway in the Highlands for the implementation of a 5% levy, with estimates it would generate £10 million for the area.
Edinburgh City Council is set to implement a similar 5% charge from July next year.
Aberdeen City Council is moving towards a 7% levy, with a plan to implement the scheme by April 2027.
Further action on levy in Moray ‘a mistake’
Elgin North councillor Amber Dunbar voiced her concern over the impact of a tourist tax in Moray.
She said: “Our local tourism industry really is vital to Moray’s economy, it supports businesses, jobs and communities.
“I really believe that the introduction of a visitor levy here would be a mistake.”
She added the requirement of a percentage charge over a flat fee meant the legislation was “significantly flawed.”
Depute Council Leader Donald Gatt, who represents Keith and Cullen, said: “This is just another tax on anybody who chooses to visit Moray. Tax should be cut, to encourage people to visit Moray.”
Moray Council should ‘maximise’ options for levy
Forres councillor Draek van der Horn said similar levies are “common throughout the world” and help mitigate the impact visitors have on areas they visit.
Speyside Glenlivet councillor Juli Harris says they repeatedly asked the Scottish Government for different ways to generate revenue.
She said: “I think here is an ideal opportunity to do that with tourism being a vital part of the Moray-Speyside infrastructure.”
Buckie councillor Sonya Warren asked the council to “maximise this opportunity” to investigate a levy and raise money for tourist infrastructure.
The work on a future levy in Moray will return to the council once more information on the scheme has been gathered.
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