Highland hoteliers call on councillors to shelve plans for a ‘tourist tax’ visitor levy as industry faces increased pressures from United States political changes under President Donald Trump
A tourist tax on visitors to the Highlands is an "exceptionally frightening” prospect for the area’s hotel industry, according to a representative body.
The Highland Hotels Association (HHA) issued a fresh warning to Highland Council over visitor levy proposals, urging the local authority to shelve the divisive plans in what it describes as already turbulent times for the region’s hospitality industry.
The body also warned the levy could adversely impact the Highland economy as a whole.
The association of 35 independent and chain Highland hotels is pointing to severe challenges facing operators, including inflation in food and energy costs, high interest rates, wage inflation and increased National Insurance contributions.
It says many member hotels suffered losses during the critical off-season months of January to April, with forward bookings for summer 2025 tracking below expectations for the third year running.
Since recent political changes in the United States triggered the introduction of global tariffs and market turbulence, many Highland hotels have reported a sharp decline in bookings from international tourists - traditionally one of the region’s strongest visitor markets.
HHA chairman Craig Ewan said: “In recent months, we’ve seen market turmoil amid tariffs imposed by the USA and tensions escalate globally, which have resulted in a significant drop in demand from the North American market.
“The fragility of the Highland tourism industry is very evident and the thought of a visitor levy being in consideration is exceptionally frightening.”
The levy, passed by the Scottish Government and handed to local authorities to implement at their discretion, remains a point of serious contention.
Mr Ewan added: “The council’s consultation on the levy closed on March 31 and has since been paused.
“But a pause is not enough. What we need is decisive action to support, not stifle, a sector that underpins thousands of local jobs and contributes millions to the Highland economy.
“To propose to introduce a levy at this time on an already burdened industry would further damage the entire Highland economy going forward.”
Hoteliers across the Highlands have voiced growing unease about the timing and potential impact of such a charge.
Anne Gracie Gunn, owner of the Sonas Collection of boutique hotels on Skye and in
Oban, said: “North American business is our region’s core business and the highest spenders in Scotland.
“It is essential that we do everything we can to welcome this market and quickly investigate and approach other international markets to fill the void.”
The association is calling on local councillors to listen to the businesses on the front line and scrap the proposal before further damage is done.
The Highland Hotel Association has recently met with the Scottish Tourism Alliance (STA) who represent the sector and have shared their concerns.
Marc Crothal from the STA met with Ivan McKee, Minister for Finance of
Scotland, this week to emphasise Highland hoteliers’ concerns and ask the Scottish Government to intervene with an official pause - a request that was denied.
The HHA has asked for a meeting with Deputy First Minister Kate Forbes to discuss further, but has not yet received a response.
Last year when the HHA requested to meet with Ms Forbes to discuss their initial concerns, she declined saying her schedule was too busy.
Approximately 1800 hotels, B&Bs, guesthouses and self-catering units in the Highlands and Islands would be affected by a visitor levy.
Mr Ewan added: “This entire process has been very frustrating. There has not been enough consultation with the industry and, when there has been consultation, the information provided has not been taken on board.
“The proposed visitor levy in its current format does not work for the industry. This is something that has been poorly planned and pushed onto local authorities far too quickly, without designing properly.
“The entire proposal needs stopping before it damages the hospitality industry in the Highlands permanently.”