Meeting of the Parliament 19 February 2026 [Draft]
A visitor levy is a welcome step forward for our local authorities, and I hope that it can now be implemented in a way that takes account of local factors. That is also the view that many tourist businesses in my constituency have expressed to me.
Tourism is of increasing importance to island communities, and we are, of course, supremely blessed in the Western Isles. To highlight just a few things at random, tourists can choose from the Callanish stones; the plane landing on the beach on Barra; our distilleries; boat trips to St Kilda; HebCelt, the world-famous Hebridean Celtic music festival; the Ceolas festival; and our countless white sandy beaches.
However, managing all of that requires local infrastructure. A visitor levy helps to ensure that that infrastructure is maintained without having to divert vital funds from other priorities.
Providing local authorities with additional flexibility on how a visitor levy is calculated is welcome. By giving councils the option to introduce a fixed rate, we can better ensure that the levy is implemented according to the needs of local authorities across Scotland and not only those in the cities.
A couple of additional island-specific points arose out of the Government’s recent consultation on cruise ship levies, and I hope that those issues can now be given consideration at the next stage of the bill.
In the Western Isles, many visitors arrive by cruise ship, or stay in camper vans rather than in hotels or Airbnbs. I reiterate a proposal from colleagues in Orkney, Shetland and the Western Isles, as well as from tourism bodies such as Visit Outer Hebrides. To ensure a balanced approach, consideration should be given to implementing a similar levy on cruise ship visitors and camper vans that come to the islands. I appreciate that, as Mr Rennie pointed out, time is limited in this parliamentary session to allow us to consider everything, but a port-of-entry-style levy, if introduced, would, I believe, strengthen the measures. I would encourage further collaborative working to consider that option.
Small and medium-sized enterprises form the backbone of many rural and island communities. In implementing the levy, we must ensure that the administrative burden is minimised and that SMEs are not inadvertently brought above the VAT threshold. One of the beauties of a port-of-entry-style model in island areas is that it allows us to take advantage of the very limited number of means that most people have of getting there, thereby simplifying the task of levying any charge. I am glad that, rather than ignoring stakeholders, the Scottish Government continues to work with them on such questions.
I am pleased to support the general principles of the bill and see it move forward to stage 2. I look forward to discussing how we might strengthen the bill to ensure that it responds to the suggestions made by businesses and island communities. The legislation can help to provide the infrastructure that ensures that our tourism economy has the means to bring about its own success in future, and it will ensure that the communities that host the industry see all its benefits.