Dumfries and Galloway hospitality businesses oppose proposed accommodation levy

On 9th June 2026, Dumfries and Galloway councillors will discuss whether to continue with plans for a Visitor Levy or halt them at this stage.

Engagement with residents, visitors, and businesses has shown significant awareness of levies, but strong opposition from tourism businesses persists.

If councillors agree to consult further, two levy models are considered: flat-rate and percentage-based. Officers recommend a pilot flat-rate with charges up to £3 per night based on accommodation type.

Funds would support local priorities such as roads, paths, and tourism development. A three-year pilot is suggested, with formal consultation feedback informing a final council decision in autumn 2026. The earliest introduction could be 2028.

Dumfries and Galloway's hospitality sector is voicing concerns over a proposed accommodation levy that could significantly impact local tourism and jobs.

According to the Scottish Hospitality Group, which represents businesses throughout Dumfries and Galloway, introducing the levy at this time would be counterproductive for a region heavily reliant on tourism to sustain its economy.

The council's engagement exercise revealed substantial opposition to the levy, particularly from tourism and hospitality businesses that are pivotal in generating visitor attraction and enhancing the visitor experience in the region.

The Scottish Hospitality Group argues that the term “tourist tax” is misleading, as it would affect local residents who choose to stay overnight within their community, not just tourists.

The levy is seen as an additional charge that could make Dumfries and Galloway less competitive compared to other destinations like Cumbria, Ayrshire, Northumberland, and the Scottish Borders.

Unlike Edinburgh, which benefits from international appeal, Dumfries and Galloway depends on attracting value-conscious domestic visitors who have a range of options for their holidays.

The group highlights that the economic pressures facing families, combined with the high VAT rates for hospitality in the UK, make the introduction of a levy particularly challenging.

Rising operational costs have already placed substantial financial pressure on hospitality businesses in the area, and the group fears that a levy could further deter visitors.

Concerns around fairness also arise, as day visitors who utilise local infrastructure would not be subject to the levy, creating an inequitable burden on overnight visitors and accommodation providers.

The Scottish Hospitality Group stresses the importance of supporting the growth of tourism and hospitality, rather than imposing additional costs, to ensure the sector can continue contributing significantly to local economies.

With the consultation discussion set for 9th June 2026, the group believes that the future prosperity of the region depends on growing tourism, not taxing it, and urges the council to consider the wider economic implications.