Frequently Asked Questions
Does the Council have to introduce a visitor levy?
It is not mandatory for the Council to introduce a visitor levy. However, with growing tourism pressures and shrinking public sector budgets, the Council has to investigate options that could help to support services and infrastructure that both residents and visitors enjoy.
When could a visitor levy come into effect in Shetland?
The Council has not yet decided whether a visitor levy will be introduced in Shetland. However, if a scheme were progressed, it would be unlikely to come into force before 2027.
Who would have to pay the levy?
A levy would apply to visitors staying overnight in hotels, hostels, guest houses, bed and breakfasts, self-catering accommodation, camping sites and caravan parks.
The legislation makes provision for exemptions from the visitor levy for those who are considered to be in socio-economic hardship, and for visitors in receipt of specific disability benefits.
Current legislation does not allow cruise ships or motorhomes to be charged a visitor levy.
How much would visitors have to pay?
Visitors would have to pay a percentage rate based on the accommodation cost. The exact percentage rate is decided by the local authority.
Legislation specifies a percentage rate as this allows for the levy to be proportionate to the overnight accommodation choices of those staying overnight.
The levy would be charged per room, per night on the cost of the accommodation portion only. The levy is not applicable to any other costs associated with overnight accommodation such as meals, parking, laundry facilities, etc.
Who would collect the levy from visitors?
Accommodation providers would be responsible for collecting the levy from visitors and paying it to the Council.
How would the proceeds of a visitor levy scheme be spent?
The legislation requires that net proceeds of a visitor levy scheme must be spent on developing, supporting and sustaining facilities and services which are substantially for or used by persons visiting the scheme area for leisure or business purposes (or both).
How can I have my say on a local visitor levy?
There will be opportunities over the coming months for residents, tourism businesses and organisations and anyone else who could be affected by a visitor levy to have their say.
Details will be publicised once external consultants have been appointed and the formal engagement programme has been finalised.
How can I have my say on a cruise ship levy?
The Scottish Government intends to launch a formal public consultation on a cruise ship levy early in 2025. It is anticipated that details will be publicised in national and local media.