The Argyll and Bute Visitor Levy revised scheme is out for consultation. Deadline 5 October 2026

Consultation on the revised visitor levy scheme closes at 11:59 pm on Monday 5 October 2026. If you haven’t already done so, please respond with your views; it does make a difference. https://www.argyll-bute.gov.uk/visitor-levy Visit Mull and Iona (VMI) believes that a visitor levy would at best have marginal benefits, for the amount of harm it would do to the islands’ tourism economy. The survey does not focus on the entire levy model which means people are not fully informed, and it leaves the question of whether a levy is acceptable until the end. In VMI’s view, the survey methodology means the results will not fully reflect the views of Argyll and Bute communities, especially the islands. It is possible to give your opinion in the open boxes at each question, and many respondents are taking the opportunity to do so to try and get their views across.

The major criticism of the visitor levy revised scheme by VMI is that it still does not reflect island life and does not take advantage of the Scottish Government legislation to do so, even though 17.5% of the Argyll and Bute population live on islands.

The Council could exclude islands from the levy because of the ferry disruption

VMI argues that the Mull and Iona visitor economy is in decline because of the ongoing negative effects of ferry disruption. The cost of living crisis and other economic pressures on consumers, make it clear that this is not the time to introduce a visitor levy. The Council has the power to implement a levy in only part of its local authority area and could therefore choose to exclude islands.

VAT implications for businesses near the registration threshold

VAT may apply to the levy element, and levy income collected can count towards an accommodation provider’s VAT-taxable turnover. VMI is concerned that this could have serious financial implications for businesses approaching the VAT-registration threshold

Day visitors and cruise passengers are outside the Levy; paid motorhome pitches are included

Because the levy applies to paid overnight accommodation, day visitors travelling by car and cruise passengers who do not stay overnight are outside its scope. Touring pitches for campervans and motorhomes at caravan parks or campsites are included in the proposed scheme, while motorhomes not purchasing chargeable overnight accommodation are outside it. VMI is concerned that visitors outside the levy may still add pressure to local infrastructure.

VMI seeks assurance that Mull and Iona would receive a fair share of Levy investment

VMI argues that Mull and Iona generate a high share of Argyll and Bute’s visitor economy and is concerned that the draft scheme does not guarantee that the islands would receive a proportionate share of levy investment.

Accommodation providers would take the strain of collecting and administering the levy on behalf of the Council

Accommodation providers have said that collecting and administering the Levy on behalf of the Council would place an unfair burden on them. The revised draft proposes that providers may retain 2% of the levy income they collect to help cover administration costs; this is not 2% of their total accommodation revenue. Highland Council has proposed a 5% allowance. Orkney and the Western Isles have decided not to proceed with an overnight visitor levy currently. VMI suggests that, if the legislation allowed it, collecting a levy at points of entry by sea and air could be considered for island areas.

What are the main proposed changes in the revised scheme?

1. The revised scheme proposes a flat rate amount per room, per night instead of a percentage
2. Two new exemptions, namely healthcare visits by islanders traveling to the mainland and youth residential outdoor education centres focused on residential trips for young people.
3. Proposed spending themes and examples for levy income include public toilets, EV charging, motorhome waste points, cultural events and workforce training. The draft does not guarantee that every example will be funded.
4. Per-room or per-area basis: the 2026 amendment permits councils to use a fixed amount. Argyll and Bute’s current draft proposes to apply that fixed charge per room or accommodation area, such as a hotel room or tent pitch.
5. Administration allowance: the revised draft proposes that accommodation providers may retain 2% of the levy income they collect to help cover administration costs.

Some of these proposed changes are an improvement on the first version of the levy but don’t go nearly far enough.  VMI is very pleased that Argyll and the Isles Tourism Cooperative is urging the Council to pause the current levy proposal until an independent assessment has been published and considered, demonstrating whether the expected benefits outweigh the costs and risks. https://business.wildaboutargyll.co.uk/latest-news/aitc-opposes-proposed-visitor-levy-in-argyll-and-bute/

If you want to make a complaint about the consulation and survey method and/or the principle of a visitor levy email ablv@argyll-bute.gov.uk

Please consider writing to your local Councillors before October 5th

Amanda Hampsey (Reform UK) Email: amanda.hampsey@argyll-bute.gov.uk

Willie Hume (Scottish National Party – SNP) Email: willie.hume@argyll-bute.gov.uk

Andrew Kain (Independent) – Vice Chair of Oban, Lorn and the Isles Area Committee Email: andrew.kain@argyll-bute.gov.uk

Jim Lynch (Scottish National Party – SNP) – Leader of the Council Email: jim.lynch@argyll-bute.gov.uk

You might also wish to contact Jenni Minto MSP jenni.minto.msp@parliament.scot and Brendan O’Hara MP brendan.ohara.mp@parliament.uk