East Lothian Proposes 5% Tourist Tax for Accommodation Stays

East Lothian Council is exploring a new visitor levy that could add a 5% charge to overnight stays, potentially raising £1.2 million annually for community projects.

East Lothian, known for its picturesque beaches and charming seaside towns, is contemplating a new visitor levy that could impact tourists and local businesses alike. The proposed five per cent surcharge on overnight stays in hotels, hostels, short-term lets, and caravans aims to generate approximately £1.2 million annually for the East Lothian Council.

The draft plan, set to be discussed by councillors next week, includes a public consultation period beginning at the end of next month. If approved, the levy could be implemented by the summer of 2028.

Draft Plan Details and Exemptions

The proposed levy would require accommodation operators to collect the additional fee and pass it to the council. They would also need to keep records of all guests and submit them regularly. To offset administrative costs, operators would be eligible for reimbursement.

Notably, properties used by charities or for charitable events would be exempt from the scheme.

East Lothian Council has already conducted online consultations with visitors, businesses, and accommodation operators to gauge opinions on the draft proposals. The feedback revealed a mix of perspectives: while individuals and community organizations were generally supportive, accommodation businesses expressed concerns about potential impacts on visitor numbers, spending, and increased costs, particularly for smaller operators.

Legislative Background and Community Involvement

The proposal follows legislation introduced by the Scottish Government two years ago, which empowers local authorities to implement visitor levies. Edinburgh is set to become the first region to introduce such a levy next month, also at a five per cent rate.

To ensure community involvement, the East Lothian plan includes the establishment of a Visitors Levy Forumcomprising representatives from the community, businesses, and tourism sectors. This forum would have a say in how the funds generated from the levy are utilized.

The draft plan highlights the potential benefits of the levy, such as improved infrastructure and services for both residents and visitors. However, it also acknowledges the need to balance these benefits with the concerns of local businesses, particularly smaller operators who may face administrative burdens.

As the proposal moves forward, the council will seek public input to refine the plan and address any concerns before final implementation. The outcome of this process could set a precedent for other regions in Scotland considering similar measures.