One of Britain’s best known hotel tycoons has condemned plans for new tourist taxes across Scotland , warning the move will damage tourism and encourage visitors to head to England instead. In what represents the fiercest criticism yet of the tourist tax plans, Sir Rocco Forte has backed calls for local authorities to boycott the levies, and called on everyone invested in Scotland’s tourism industry to rally together to “kill this stealth tax at birth.” Advertisement Advertisement Sign up to our Politics newsletter Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more.
The chairman of the eponymous hotel group, which includes The Balmoral on Edinburgh’s Princes Street, condemned the planned introduction of the levies as “bad for jobs” and “bad for economic growth”, characterising the levies as a “very high risk” strategy at a time when Scotland’s tourism sector is still recovering from the impact of the pandemic. In an article published exclusively in The Scotsman, the 79-year-old accused Holyrood of passing the Visitor Levy (Scotland) Bill with “little or no consideration of the real world impact”, and argued it would also discourage domestic visitors from choosing staycations – a move that would “further depress spending in Scotland”. Under the legislation, which was passed in May , the fee would amount to a percentage of the cost of overnight accommodation, minus any commission the provider pays to any online booking services, and additional charges, such as food and drink.
The Scottish Government argues that similar levies are in place across several European tourist hotspots, including Amsterdam and Berlin, as well as in countries further afield, such as Canada. It says the levy will allow local authorities to reinvest the money raised in services and facilities largely used by tourists and business visitors. The City of Edinburgh Council, which has long been supportive of the idea of a tourist tax, is expected to be the first to press ahead with the plans.
Cammy Day, the council leader, said his administration was working with the tourism industry and other partners to introduce a levy by early summer 2026. But Sir Rocco has hit out at the plans, indicating the added costs as a result of the levy will be passed on by accommodation providers to consumers. He pointed out that a proposed 7 per cent levy in Edinburgh would mean a £1.
3 million tax bill for The Balmoral. “All holiday accommodation in Scotland, however modest, will be affected, immediately becoming up to 10 per cent more expensive,” he cautioned. The hotelier, who has been a significant donor to the Conservatives , and donated to the Vote Leave campaign during the Brexit campaign, predicted prospective visitors to Edinburgh would either favour trips to destinations in England, or simply reduce the duration of their stay in the city, while also spending less.
“That will hit the entire tourist economy – retailers, taxi drivers, restaurants and cafes, museums, galleries, tourist attractions – anywhere that visitors currently spend money,” he said. “It will also deter guests wanting to leave tips or service charges for staff.” Advertisement Advertisement Cllr Day said a visitor levy presented “a massive opportunity” for Edinburgh, pointing to the weekend of the Taylor Swift concert at Murrayfield, which he said would have raised £600,000 if the tax had been in place.
He said: “Tourists have come to expect a small fee to visit the world’s top cities, so why not Edinburgh? It works perfectly well in many other European destinations – including most places offering a Rocco Forte hotel, such as Rome, Berlin, and Brussels. Also, there is no evidence to suggest levies deter new hotel ventures from opening – for example, I understand that Rocco Forte plans to open new resorts soon in visitor levy-charging Milan and Naples.” He said income generated through the levy would be reinvested into services such as sustainable transport, infrastructure and public spaces or enhancing culture, heritage, and festival programmes, as well as supporting the tourism and hospitality sector.
He added: “Having long campaigned for the powers, I welcome the Scottish Government’s recognition of the scheme as a ‘force for good’. We’re now working closely with the tourism and hospitality sector, VisitScotland and other partners to develop a scheme that we’re looking forward to introducing from summer 2026.” Miles Briggs, Scottish Conservative MSP for Lothian, said: “Sir Rocco Forte’s stark warning of the potentially catastrophic impact of the SNP’s tourist tax should be heeded by councillors in Edinburgh and across Scotland.
As well as potentially putting off visitors from coming to Scotland, this levy, which only the Scottish Conservatives opposed, could price Scots out of enjoying a holiday on home soil.” A spokeswoman for the Scottish Government said: “The Visitor Levy Bill aims to increase funding for local visitor facilities by allowing councils to apply a levy on overnight stays if they wish to do so. “The legislation requires local authorities to consult local businesses and communities before introducing a levy.
They would also be required to provide a lead in time to allow businesses to put systems in place to collect the levy, helping to alleviate any administrative burden, and to publish assessments of how the measures are affecting local businesses.” Comments Want to join the conversation? Please register or log in to comment on this article..
