Tourist tax is a thorn in the side of many travellers and is likely to become more common in other countries. In a bid to clamp down on overtourism, tourist tax has been introduced to a few places and normally takes the form of a charge per occupied bed or room per night and is levied on short-term accommodation providers. UK tourist tax remains a relatively new concept with many regions not yet implementing them apart from Bournemouth, Christchurch and Poole who in May 2024, announced that they would be introducing a similar levy for visitors and tourists and becoming the first destinations in the UK to do so.

This move is said to have a ripple effect among other UK spots as Scotland has recently announced a tourist tax being introduced in certain parts.

Despite this potentially reducing tourist numbers, the Scottish Government have been warned about the potentially detrimental impact this could have and could cost businesses a whopping £275 million.

Last year, the SNP Executive forced legislation to allow for certain councils in Scotland to be given the power to charge visitors each time they stayed overnight with Edinburgh and Glasgow being among the first cities to do this.

The Scottish Government were warned that this tourist tax could see far less visitors with less money being spent in Scotland, including its two largest cities, according to an FOI request submitted by the Scottish Daily Express.

The tourist tax in Scotland will also differ to how many other European cities implement it as this extra charge will also be added to the bill of anyone enjoying a staycation in Scotland - a move that has been slated by ordinary working people.

The tourist tax warning and how this could affect the country was also echoed by many local businesses who could lose out on millions.

According to a dossier submitted by UK Hospitality, the implementation of a tourist tax of £2 per room per night could lead to accommodation turnover reductions totalling around £100 million a year.

This could also include a total visitor reduction spend of roughly £175 million as this tourist tax will likely mean visitors staying for less nights, spending less or going somewhere else entirely.

Analysis submitted by STR, which provides market data on the hotel industry worldwide, reiterated these concerns particularly when it came to cities such as Edinburgh and found "that there is a sense that the additional cost to visit and stay in Edinburgh may displace a portion of their expenditure when visiting the city”.

They added: “It seems like the budget traveller will react most pragmatically by adjusting their expenditure to account for any additional cost by downgrading their accommodation choice or spending less whilst in the city.

"A less restricted TVL (transient visitor levy) would, therefore, help to minimise the impact for longer staying, and hence, higher spending visitors."

Speaking to the Scottish Daily Express, Shadow Cabinet Secretary for Business, Economy, Tourism and Culture Murdo Fraser added: "These estimates clearly show the impact of an additional tax on visitors, and that they are likely to spend less with local businesses.

“Scottish firms, especially in hospitality and retail, are already being hammered by two left-wing, high-tax governments and these charges will only make things more difficult, and hold back the economic growth we desperately need.”