Scottish island demands that 'tourist tax' pound stays local

Tourist businesses on Skye have overwhelmingly supported the call put forward by island leaders to ringfence revenues raised from visitors, with 99 per cent of those who took part in recent research on the issue backing the idea.

SkyeConnect, a destination management organisation, earlier estimated the transient visitor levy (TVL), which would apply a small charge to most overnight stays, could raise “millions” of pounds of revenue for the island.

READ MORE: Motorhome ‘tax’ proposed for Scottish island where numberplate recognition could track tourists

While Skye has a resident population of around 13,000, more than 850,000 people have visited this year - with the figure continuing to rise.

The fresh research comes as Highland Council launches its own consultation on the TVL, which is due to come into force by next spring. Under new laws, local authorities have powers to collect and distribute to communities to support tourism and visitor management.

But Skye, which has ongoing issues surrounding tourist numbers and their impact on infrastructure and quality of life for islanders, wants powers to ringfence revenues with money raised on Skye spent on Skye.

A spokesman for Skye Connect said the island has sent a “clear message” to Highland Council ahead of its consultation process.

A statement said: “We advocate for funds raised on Skye to be allocated locally, focusing on projects that enhance the visitor experience and support the local economy.

“We recognise that final decisions rest with Highland Council, and SkyeConnect is committed to working collaboratively within the framework set by the Scottish Government.

“Through transparency and ongoing consultation, we hope to ensure the levy addresses both Skye’s unique pressures and aligns with regional and national tourism objectives, benefiting visitors and the wider community.”

On Skye, 88 per cent of those businesses who responded said campervans and motorhomes not staying in commercial campsites should be charged, potentially using technology such as number-plate recognition to collect revenue.

Meanwhile, 45 per cent called for day-visitors to be charged, 61 per cent want the levy applied to cruise ship passengers, 66 per cent want the levy applied to tour groups and 46 per cent want wild campers to be charged.

Highland Council is poised to published its suggested levy rate on overnight stays.

On Skye, 58 per cent of all respondents supported a 1-2 per cent charge with 22 per cent suggesting a 3-4 per cent charge would be fair and 13 per cent calling for a 5-6 per cent levy. Edinburgh City Council is proposing a year-round levy charged at 5 per cent of the accommodation cost, capped at seven consecutive nights and applied across the entire Edinburgh Council local authority area.

Edinburgh Council is also proposing that 10 per cent of revenue is ringfenced for destination management to help channel money into pressure points and priorities.

SkyeConnect said it wanted similar commitment from Highland Council following the removal of core funding from all Highland destination management organisations (DMOs).

A spokesman added: “We believe the levy should be set at a fair and sustainable rate one that balances the need to protect local businesses from additional financial strain while generating enough revenue to invest in projects that enhance the visitor experience and support the local economy.”

Highland Council is expecting to launch its three month consultation during the last quarter of 2024.

A spokesman said the consultation will be widely promoted with everyone encouraged to response via an online portal.