Future of proposed Visitor Levy in South Ayrshire

South Ayrshire Council could put plans for a potential Visitor Levy on hold.

A report going before Cabinet on 17 June recommends that work on a possible Levy should be paused. If agreed, a proposed Visitor Levy for South Ayrshire would not be looked at again until August 2027 at the earliest.

The report to Councillors highlights the results of a public survey on the possible introduction of a Levy. The survey which ran for just under three months received 502 responses. 79% of those who responded were not in favour of a Levy.

Direct representations were also made from The Association of Scotland's Self- Caterers (ASSC) and the Federation of Small Businesses (FSB).

Both organisations urged caution with a proposed Levy, recommending further work is undertaken before plans for a Levy across South Ayrshire are brought forward.

The ASSC said that a Levy would have a negative impact on affected businesses. They also said that given the current challenging economic climate, the Levy would be an additional burden on their members.

The FSB view is that a Levy has the potential to provide meaningful investment in the area's tourism infrastructure, but its implementation must be fair, proportionate, and carefully considered. They requested that a local economic impact assessment is carried out, detailing scenarios for different Levy rates, to provide a clearer understanding of its potential impact.

Councils in Scotland have the power to impose a Levy for people staying overnight in certain types of accommodation. The City of Edinburgh has recently introduced a 5% payment on the cost of paid, overnight accommodation. 

Councillor Alec Clark, Depute Leader and Tourism, Culture and Rural Affairs Portfolio Holder for South Ayrshire Council said: "It's important that we listen to our residents and accommodation providers, and we have done exactly that. If agreed we will put our plans on hold, this will allow us to gather more evidence and engage with experts across a number of sectors. I would like to thank everyone who filled in the survey. I would also like to thank the ASSC and FSB for their invaluable feedback."

Councillor Chris Cullen, Economic Development Portfolio Holder said: "An agreed pause will allow us to examine data from the Edinburgh Levy and others, so we can gauge the costs and associated risks.  In 2027 we would revisit the Levy, but I stress that in two years' time the Levy would still just be a proposal."

You can view the report and feedback from the survey at https://www.south-ayrshire.gov.uk/article/36999/Search-agendas-for-committee-meetings

*This decision may be subject to call-ins (decisions can be called in for scrutiny by other Councillors prior to implementation)